e-Commerce giant Amazon is planning to expand its online ad delivery business in order to compete with Google's AdWords.

Amazon is creating a platform for delivering advertisements both on its own properties and other websites, thus generating a new source of revenue. The move may also reduce the number of Google-delivered advertisements on Amazon's own website.

According to some reports, Amazon has informed potential advertising partners that it could start testing the platform, named Amazon Sponsored Links, later this year.

Amazon may be able to challenge or compete with Google's AdWords, which fuels that company's 50 billion-dollar-a-year advertising business.

Currently, many of the advertisements on Amazon's webpages are supplied by Google, although the e-Commerce retailer places some product ads on its own website and has a small business supplying ads on other websites.

With the introduction of new system, Amazon will be able to expand its own program to handle more types of advertisements.

The new system will resemble Google's AdWords, which puts keyword-targeted ads alongside Google's search results and on millions of other websites. Its technology will allow ad agencies purchase ads in bulk, possibly for thousands of advertisers.