I think this will only contribute to shoppers expecting "Free Shipping" as pretty much given with any online purchase and lessen the appeal of Amazon Prime which is primarily a loyalty program rather than a profit center to tether shoppers to Amazon. I don’t know how much Amazon’s attempt of sweetening it with free streaming and ebooks will work in swaying shoppers to sign up.
I think Google should attempt to establish itself as a platform for Brands as I don’t know what added value online merchants offer, which are simply discounting channels causing value erosion for brands like Samsung, Sony etc. Apple’s genius has been as much in their design as in their success in preventing value erosion by being able to maintain pretty much the same pricing through any channel (except for the sales tax savings loophole from remote online). All that any Brand needs is a controlled B&M and online “showroom” experience akin to the Apple Store and logistics and payment processing partners. Google can serve as the Brands’ online showroom and payment processor (Google Checkout) and UPS which has been heavily advertising its logistics services on primetime TV is obviously trying to eliminate a logistics/warehousing middleman like Amazon.