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# Why Google Lost Product Search, Shopify vs. Amazon, Smart Speakers Flatline
- URL: https://www.nearmedia.co/why-google-lost-product-search-shopify-vs-amazon/
- Published: 2022-01-05T22:06:39.000Z
- Updated: 2022-01-05T23:42:38.000Z
- Author: Greg Sterling
- Tags: News

### Why Google Lost the Product Search Battle

For at least five years consumer surveys have repeatedly told us that Amazon dominates product search. Different surveys have different numbers: the range is [46%](https://civicscience.com/product-searches-still-start-on-amazon-for-almost-half-of-consumers-18/?ref=nearmedia.co) to [74%](https://www.junglescout.com/wp-content/uploads/2021/05/Jungle-Scout-Amazon-Advertising-Report-2021.pdf?ref=nearmedia.co) who start their shopping research on Amazon. Google has responded with a full-court press to regain market share. A key element of that is showing both e-commerce and local-store inventory options to users, which is a smart strategy. But Fabric CEO Faisal Masud, who previously worked at both Google and Amazon, offers a in-depth [analysis](https://www.linkedin.com/pulse/last-e-commerce-duel-between-amazon-google-faisal-masud/?ref=nearmedia.co) of why Google is losing to Amazon and why it's unlikely to catch up. He also says Amazon is on the cusp of duplicating Google's mistakes. Below are a few additional points. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/01/Screen-Shot-2021-12-07-at-10.40.51-PM.png)

**More from the article:** 

- Google stuffing more ads into SERPs has caused them to be less valuable and relevant to users. Amazon has benefitted.
- Amazon offers a more relevant and better on-site user experience than Google does or can. This is contributing to a migration of ad dollars.
- Amazon's ads push and [manipulation of SERPs](https://www.reuters.com/investigates/special-report/amazon-india-rigging/?ref=nearmedia.co) to promote its own products risks alienating users. But it's too late for Google to win now.

### Shopify Inches Closer to Being Amazon Challenger

Shopify has stayed away from head-to-head competition with Amazon, although it's flirting with that now. It has been an e-commerce platform enabling online selling (mostly for SMBs). Shopify also has a growing roster of top-tier distribution partners, including Google, Facebook and TikTok. However, in [April, 2020](https://news.shopify.com/shopify-unveils-its-consumer-app-shop?ref=nearmedia.co) the company launched its first consumer app, called Shop. The user experience was poor, but has since improved somewhat. The company recently launched [Gift Shop](https://newsnationusa.com/news/finance/banking/shopify-is-edging-in-on-amazons-turf-as-it-quietly-rolls-out-gift-shop-a-new-curated-marketplace/?ref=nearmedia.co) (curated product collections) within Shop. It has also improved product search. These moves suggest Shopify could become a more direct Amazon competitor soon. It's approaching 2M merchants.

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/01/Screen-Shot-2022-01-05-at-1.05.23-PM.png)

**Our take:** 

- By not being a consumer site in the past Shopify has had a clear focus on its merchant base; there was no confusion about who the "customer" is.
- The move to become a shopping destination is logical and even perhaps inevitable as the company helps merchants with product discovery.
- If Shop evolves a great UX, it could become a viable Amazon challenger in some categories.

### Smart Speakers: Amazon Has Won, So What

There are roughly 250 million adults in the US out of a total population of 331 million (2020 census). There are also [about 153 million smart speakers](https://www.comscore.com/Insights/Blog/As-Smart-Speakers-Evolve-So-Do-Consumers??ref=nearmedia.co) in US households. In addition to delivering music, news and the weather, smart speakers have become smart-home controllers. According to Numerator, about 73% of US adults are using Amazon Echo/Alexa for for that function (vs. 24% using Google). Yet these devices have flatlined as search/e-commerce tools. Mysteriously, surveys continue to show otherwise. For example, [comScore](https://www.comscore.com/Insights/Blog/As-Smart-Speakers-Evolve-So-Do-Consumers??ref=nearmedia.co) says millions of people are "making purchases" using smart speakers. And 2021 consumer survey data from Uberall reported 27% of more than 1,000 US respondents having "completed a transaction on a smart speaker." I can't explain those results but they don't represent what's really going on IRL. 

![](https://storage.ghost.io/c/03/80/0380d96d-ef7e-450e-96b3-2963e18aaab5/content/images/2022/01/Screen-Shot-2022-01-05-at-1.41.07-PM.png)

**Our take:** 

- The smart speaker was envisioned as new search and e-commerce platform, especially by Amazon. That has failed to materialize.
- Bloomberg [reports](https://www.bloomberg.com/news/articles/2021-12-22/amazon-s-voice-controlled-smart-speaker-alexa-can-t-hold-customer-interest-docs??ref=nearmedia.co), consumers are losing interest in Alexa and Amazon is losing money on them. Limited UX and privacy issues are partly to blame.
- While the smart home market will continue to grow, smart speakers are a disappointment. It's not clear what would change that.

## Recent Analysis

- **ICYMI: Google Plays Catch-up to Amazon in Product Search**, [by Adam Dorfman](https://www.nearmedia.co/google-plays-catchup-to-amazon-in-product-search/)
- **ICYMI: Local Search Ranking Factors 2021: What's New?**, [by Greg Sterling](https://www.nearmedia.co/local-search-ranking-factors-2021/)

## Short Takes

- **Moz:** [Local SEO success factors](https://moz.com/blog/2022-local-seo-success?ref=nearmedia.co) for 2022.
- **Yoast** [launches](https://yoast.com/yoast-seo-is-coming-to-shopify/?ref=nearmedia.co) SEO app for Shopify users; $29 per month.
- **Amazon, Google, FB** [scaring SMBs](https://www.politico.com/news/2022/01/04/amazon-google-thwart-antitrust-bills-526460?ref=nearmedia.co) into lobbying for them.
- **Instagram** [brings back](https://www.theverge.com/2022/1/5/22868889/new-instagram-chronological-feed-algorithm-tests?ref=nearmedia.co) non-algorithmic chronological feed.
- **Walmart** to [expand in-home delivery](https://corporate.walmart.com/newsroom/2022/01/05/walmart-to-expand-inhome-delivery-reaching-30-million-u-s-homes-in-2022?ref=nearmedia.co) from 6 to 30 million US homes.
- On January 19 **Facebook** [will nix ad targeting](https://developers.facebook.com/blog/post/2021/12/08/updating-metas-detailed-targeting-options/?ref=nearmedia.co) related to "sensitive topics."
- **Google** [showing more web stories](https://www.seroundtable.com/google-web-stories-in-top-stories-32701.html?ref=nearmedia.co) in top news carousel.
- **AI** [infiltrating](https://streetfightmag.com/2022/01/05/how-ai-is-driving-the-next-generation-of-ad-creative/?ref=nearmedia.co) ad creative for better and for worse.
- Fintech startup **Bolt** to make [4-day week](https://www.bolt.com/blog/switching-four-day-workweek/?ref=nearmedia.co) permanent after trial.
- **Sony** [introduces two new EVs](https://www.reuters.com/technology/sony-says-establish-new-electric-vehicle-company-2022-01-05/?ref=nearmedia.co) at limited-attendance CES.
- **Facebook** [abandons](https://9to5google.com/2022/01/05/meta-ar-os-android/?ref=nearmedia.co) its "XROS" project (for now), will rely on Android.
- [Fanatics buys Topps](https://www.cnn.com/2022/01/04/investing/fanatics-topps-deal/index.html?ref=nearmedia.co): Get ready for the **NFT-ification of baseball cards**.
- Opinion: How the **metaverse** can right [past social media wrongs](https://www.fastcompany.com/90710082/the-metaverse-is-a-second-chance-to-right-the-wrongs-of-social-media-heres-how?ref=nearmedia.co).
- Another [antitrust suit](https://www.docketalarm.com/cases/California%5FNorthern%5FDistrict%5FCourt/3--21-cv-10001/California%5FCrane%5FSchool%5FInc.%5Fv.%5FGoogle%5FLLC%5F%5Fet%5Fal/1/?ref=nearmedia.co) aims at **Apple-Google mobile search partnership**.
- COVID forces **Macy's, Walmart** to close locations and [cut some store hours](https://www.retaildive.com/news/the-pandemic-forces-walmart-and-macys-to-shift-store-operations/616670/?ref=nearmedia.co).
- Following other retailers, **Best Buy** launches an [in-house ads business](https://www.businesswire.com/news/home/20220104005302/en?ref=nearmedia.co).

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