Google Inc Buy Button Is not a threat to Amazon

Analyst at Piper Jaffray claim Google's Buy Button Is not a threat to Amazon

Piper Jaffray, the popular analytics firm gave its perspective on Google Inc.’s Buy button and what its repercussions might be on Amazon.com, Inc. the research report was released on Monday.

According to the sell side company, Amazon is not likely to face any threat in the times to come. Piper Jaffray has reiterated an Overweight rating on the company’s stocks and has associated a price target of $475.

According to the Wall Street Journal, Google is currently working on a buy button to enrich its mobile ecommerce platform. Over the next three years at least, this initiative by the search engine giant will not bother Amazon. Amazon governs 25% of its business through search where 90 percent of it is said to be “organic”. The only thing that can be affected at this stage is the company’s growth in the times to come.

Piper Jaffray notes that with Google coming up with a Buy button is a progressive sign for the company since now they can play as effective component in the ecommerce domain. However, Google might become a key player but it will take be near to impossible for Google to come up with an ecommerce experience similar to what Amazon is offering. This is merely because Google at this point does not really have a well-established infrastructure like Amazon, according to recent Google news.

Gene Munster, the renowned analyst at Piper Jaffray Google is a very realistic firm, but its impact on Amazon is possible in the next decade. So far Amazon is in a pretty stable state and is likely to maintain this stability. Moreover, Google is also not in a hurry where they wish to do well in the coming ten years. According to him Google’s timeline is relatively slow to achieve this target but measured accurately. The company is likely to come up with an aggressive marketing campaign in the next three years.

Mr. Munster mentioned, “We note that in many ways Google's Buy button is comparable to Instant Book's attempt to improve conversion (especially on mobile), which brings the booking experience into the TripAdvisor site.” He continued by saying that the conversion has grown better, however the issue that might affect them is lack of contact with the consumers.

There are several issues that are currently associated with Google Buy button and the journey is not likely to be as easy as they expect it to be, as reported by recent Google update. Amazon at this point need not worry but needs to have a plan for the upcoming five years.