Google Inc (NASDAQ:GOOGL) has partnered with Barnes & Noble, Inc. (NYSE:BKS) to better compete against Amazon.com, Inc. (NASDAQ:AMZN) in the books business. From Thursday, book buyers in Manhattan, West Los Angeles and the San Francisco Bay Area can order books and get them through same-day deliveries from local Barnes & Noble, Inc. (NYSE:BKS) stores through Google Shopping Express.
CNBC’s John Fortt said that Barnes & Noble, Inc. (NYSE:BKS) must be very careful about this deal and keep a strong check on the sales data, type of orders and users. He thinks that Barnes & Noble must not hand over its customer base to Google Inc (NASDAQ:GOOGL) because this can affect its image in the long term. He said:
“They have got music, movies, kids games, Beats headphones, things like that, to I don’t know if Google is going to go into that as well but it seems like there is a danger for Barnes and Noble here. If they are just handing merchandize over to Google and not getting the data in these cities about exactly what people are ordering and why, they are just giving away the store, that’s the value here. So I worry that Google Inc (NASDAQ:GOOGL) does these one off experimental projects, they don’t always follow through, this is important for Barnes & Noble, Inc. (NYSE:BKS) to understand what’s going on here.”
Henry Blodget of Business Insider added that Google Inc (NASDAQ:GOOGL) and Barnes & Noble, Inc. (NYSE:BKS) and Google will face a lot of difficulties in the book delivery business because Amazon.com, Inc. (NASDAQ:AMZN) has been well placed in this industry. There are a lot of other retailers and options for users and Google will have to do something extraordinary to get success.
Google Inc (NASDAQ:GOOGL)’s Shopping Express is going head-to-head with Amazon.com, Inc. (NASDAQ:AMZN)’s same-day delivery service. Barnes & Noble, Inc. (NYSE:BKS) will take online orders for books, toys, games, magazines and other items and Google will collect the orders and deliver them.
Disclosure: None
Suggested Articles:
Most Expensive Specialty Crops
Countries With Lowest Tax Rates
