Google Shopping reportedly will challenge Amazon with new features

Google is reported to be building out its online commerce business with a "Buy Now" button in an effort to challenge Amazon's 1-Click. The Internet search giant is said to have approached various online retailers to add the single-click buy button in an effort to keep online shoppers researching products on its pages longer.

Citing sources familiar with Google's discussions, the Wall Street Journal is reporting:

Until now, Google Shopping has referred shoppers to merchants' websites via links in search results. But Google wants to keep users on its own pages longer, rather than send them elsewhere.

Google wouldn't sell or ship products itself. It aims to streamline shopping for Internet users so they keep searching for products on Google instead of switching to Amazon. The move comes as Amazon has bolstered efforts to snag a slice of Google's search-advertising business.

The publication says that Google may also be pushing a second program that would more directly compete with Amazon Prime where retailers could promote 2-day shipping for customers who sign up for an annual membership.

Some retailers are considering participating in Google's shopping initiatives because they fear Amazon more. Unlike Amazon, Google doesn't sell products itself. It has discussed allowing merchants to capture the email addresses of customers who use a Google "buy" button, according to people briefed on its plans. Amazon doesn't share customer data like email addresses with merchants that sell via its website. An Amazon spokesman declined to comment.