Google in talks with retailers, plans to take on Amazon

Internet search titan Google is in talks to create a service that would let consumers pay a low fee to receive goods from online orders within a day -- in a potential challenge to Amazon.

"The web-search giant is in talks with major retailers and shippers about creating a service that would let consumers shop for goods online and receive their orders within a day for a low fee," the Wall Street Journal reported citing a person familiar with the matter.

Google hopes to launch the service sometime next year, the report said.

The internet firm is eyeing on the popularity of Amazon.Com's Prime service, which offers free two-day shipping for $79 a year in the US.

The report said that Google does not plan to sell items directly to consumers. Instead, it would meld its search engine's product-search feature, which directs shoppers to participating retail websites, with a new quick-shipping service that internet search engine titan will oversee.

By developing a fast-shipping system, Google aims to tap into a US online-retail industry that is expected to grow 12 per cent to $197 billion this year, according to Forrester Research.

The biggest player by far in the field is Amazon, which could see nearly 50 per cent rise in annual revenues to $50 billion by year-end.

According to the publication, an Amazon spokesman declined to comment, while Sameer Samat, vice president of product management for Google's commerce initiatives also declined to comment on the quick-delivery plan.

"We have been in the business of connecting shoppers with merchants and the products they're interested in buying for a long time," the report said citing Samat.