Google just launched a new feature on the mobile version of Google Product Search which could take local shopping search startup Milo out at the knees. Whenever you do a Google product search from a mobile phone, blue dots will appear next to items which are in-stock at nearby stores. The image at right is from a search I just did for “HDTVs.”  The blue dots are subtle, but they certainly distinguish those results. Google has partnerships with Best Buy, Sears, Williams-Sonoma, Pottery Barn, and West Elm to show local inventory, and it is inviting other merchants to apply to participate as well.

Highlighting local inventory in product search results is exactly what Milo does, although it works on the Web as well as mobile. Milo will have to try to keep one step ahead of Google now that its business has been targeted as a feature of Google Product search.

View full post on TechCrunch