When one thinks of online retail, there is one and only one name that comes to mind: Amazon (AMZN). That may not be the case for much longer though, as the retail giant has a target on its back that many smaller upstart firms are seeking to exploit, and they have a significant internet ally at their disposal.
Although some industry experts expect Amazon’s sales to triple by 2016, none other than Google (GOOG) is taking aim at the company’s stranglehold on Internet retail. The vision for the venture will utilize Google search as a type of storefront that will allow business that are partnered with the company to have their results displayed in a preferred position above others. Rather than going to Amazon.com and searching for a product, consumers could now simply search through Google and get a quick result from specialized retailers.
Smaller niche retailers are especially eager to work with Google on this, and the company has already started establishing some partnerships in select sectors. One example of this is the San Francisco based start-up, Inkling, which is focused on the textbooks industry. Many smaller companies believe that working with Google will help them retain their own brand identity better than if they were centralized in the Amazon database; this is another reason that many big retailers have been hesitant to work with Amazon, making it difficult for them to break into the fashion industry.
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Do you think that these smaller companies have a legitimate chance to inflict pain on Amazon? The Internet retail giant must continue to develop and innovate in order to hold off all of these smaller companies are seeking to knock it off its perch. Because they have a company with huge profits like Google as an ally, anything is possible.