Google announced today that it would cancel the fees charged to retailers by Google’s shopping service to attract merchants from rival Amazon. Google shopping is a price comparison service owned by Google. If retailers want consumers to buy their products directly through Google shopping, they need to pay Google.
and Google announced today that it would cancel the fee. The move is the latest in a series of similar moves by Google to make it easier and cheaper for retailers to sell their products to the millions of consumers who use Google’s search engine every day.
a survey last year by civicscience, a research firm, showed that Google is the dominant search engine in the world, but almost half of Americans are looking for something to buy on Amazon, while only 22% of Americans are looking for it on Google.
Google shopping has been around for years, but so far, retailers have had to list their products by buying ads. If people buy directly from Google, the seller also has to pay a commission of up to 12% of the transaction. As far as Amazon
is concerned, it is far less than Google. By the end of 2019, Google shopping had about 3700 stores and other businesses, compared with 3 million active sellers on Amazon, according to marketplace pulse, an e-commerce research firm. Without these businesses, Google will not have enough product lists to drive it to become a leading e-commerce destination.
Google’s move to cancel Google shopping fees coincides with a growing number of small businesses complaining that Amazon is squeezing more from them. Data shows that as much as 40% of every dollar sales generated by third-party businesses on Amazon go to Amazon, including warehouse storage fees and advertising fees that push up product location in product search results.
bill ready, Google’s president of Commerce, said the Department was bringing these changes to market so that businesses could use them as soon as possible.
Reddy would not comment on the competition with Amazon, but said Google’s vision is to make it easier and cheaper for businesses to sell products to consumers. In addition, Google also announced that it will integrate with Shopify and PayPal to help businesses manage inventory and sell products directly on Google. Reddy also revealed that there will be more business integration in the future.