Google Challenges Amazon in e-Tailing

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Google will be taking on e-commerce superstar Amazon with a new delivery service that will ship merchandise from local stores on the Web to their shoppers within 24-hours.

The new delivery service, which is still in its testing phase, was outlined by unnamed sources in both the New York Times and the Wall Street Journal. According to the WSJ:

The effort is a risky one, and would escalate Google's budding rivalry with Amazon, which has been riding the success of its $79-a-year Amazon Prime program. That program, which offers shoppers fast shipping at no additional charge for many items on the company's website, helped drive a 42% increase in the company's sales in the first nine months of the year.

Google has already approached Macy's, Gap and OfficeMax with Google delivery service, but so far the reception has been noncommittal.
Google has been expanding e-commerce for a while now, including launching Google Offers which offers online daily deals from retailers. By adding delivery service, Google can only enhance its merchant features.
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