> I won't defend customer service, but I will point out that what Google is doing is 'federated' shopping, and what Amazon does is centralized fulfillment.
That's not been true of Amazon for many years. Or, rather, it's not been true that that is the only thing Amazon does.
Amazon federates merchants worldwide, and fulfilment can be via Amazon end to end for merchants that opts for Fulfilment by Amazon. Amazon has stakes in some delivery companies, and in the UK at least they are shortening their delivery paths via Amazon Logistics [1], which provides them with a "halfway house" in the form of their own local delivery depots. But merchants can also opt to do fulfilment themselves.
They are now rolling out "same day pickup": Order by 11.45; have the order ready to be picked up in one of hundreds of locations by 4pm, or order by 7.45pm and be able to pickup from 6.30am the following day [2].
Couple that with Amazon Lockers, and Collect+ (UK network that provides delivery to your local corner shop etc., and Amazon supports delivery to them), and it's clear that Google will be increasingly facing same day options from Amazon backed by an inventory that will be extremely hard to beat.
> Google Shopping Express seems to be to be putting Amazon's logistics up against the entire local market of your area.
Over the last year, most of what I purchased via Amazon isn't even available in my local shops.
[1] http://www.telegraph.co.uk/finance/newsbysector/retailandcon...
[2] http://www.telegraph.co.uk/technology/amazon/11162865/Amazon...