These are the key implications of the Walmart-Google partnership to take on Amazon (GOOG, GOOGL, WMT, AMZN)

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Walmart and Google are forming a partnership that will see Walmart’s products sold through Google Express’ website and app, as well as Google Home, starting in September, Business Insider reports.

Google Express has eliminated its $95-a-year membership fee that includes free two-day shipping, and will instead allow retailers to select a minimum purchase value threshold for the perk. Walmart will be setting its minimum at $35, just as it does on Walmart.com, and will be handling fulfillment of its orders.

Here are some of the key implications of the partnership:

• Google will gain access to Walmart shoppers’ purchase histories, which could lead to improved personalization. Walmart accounts can be linked to Google Express, affording Google and its widely touted artificial intelligence (AI) access to a huge pool of new data that it could use for personalization through targeted ads, individualized shopping experiences, and more. Personalization is projected to be extremely valuable going forward, so new data analysis and personalization is important for both companies’ futures.
• The new partnership will offer voice ordering for grocery starting next year, potentially helping Walmart protect its grocery business, which accounts for 56% of all of the retailer’s sales. Amazon has been making inroads into the grocery business with AmazonFresh and its looming acquisition of Whole Foods, threatening Walmart’s position in the industry. Introducing voice ordering for groceries could help the retailer better fend of Amazon, especially as voice purchases become more popular and online grocery grows.
• Google Express, and Google Home, will integrate with Walmart’s Easy Reorder in a bid to boost consumer packaged goods (CPG) sales. Easy Reorder allows customers to quickly reorder products they have previously purchased, which is simpler than making customers browse a website to find their preferred brands and sizes for CPG products. This integration will serve as a rival option to Amazon’s Dash Buttons, with Walmart and Google likely hoping the advent of voice purchasing will make Easy Reorder the more attractive option.

The two companies are looking to combine their strengths to draw shoppers away from Amazon. Separately, neither company has had much success in taking on Amazon in e-commerce, but the two do have legitimate advantages over the Seattle-based company. Walmart’s network of stores provides a physical advantage over Amazon that allows it to offer attractive omnichannel options including click-and-collect, while Google has deeper AI expertise than the e-commerce giant. This partnership is an attempt by Walmart and Google to combine their strengths, and truly rattle Amazon's stronghold on the online retail market.

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