How Businesses Can Make the Most Of Commission-Free Sales On Google Shopping In addition to facilitating smooth and speedy checkouts for customers, the new feature would help sellers reach a large consumer base

By Kiran Patil

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After introducing free product listings, Google shopping is now establishing its authority in the e-commerce market by introducing commission-free "buy on Google'. In addition to facilitating smooth and speedy checkouts for customers, this new feature would help sellers reach a large consumer base. This allows sellers to get increased sales momentum without paying any commission. This update is currently released in the US, and is expected to be released in the international markets later this year and in 2021. In this article, I delve into the key benefits of this update, to help businesses make the most of it.

How will commission-free Google shopping help sellers?

"Buy on Google' option provides a convenient option for customers to purchase their desired product directly from the search engine result page, without going to the seller's website. The seamless customer journey provided by Google encourages customers to opt for Google shopping, making it a prominent product search and purchase destination. With this update, both SMBs and big businesses can reach an increasing number of people online, effectively manage order and payment processes, and reap the benefits of third party integrations without paying any additional fees.

No additional cost of selling: For every purchase made via "buy on Google', sellers will not be charged with any added commission fee which typically ranges from 5-15 per cent for other marketplaces. The elimination of additional cost makes Google shopping a more affordable option for sellers, especially for retailers newly stepping into the e-commerce world. This cost saving can be used for other necessary improvements like manufacturing and shipping to efficiently handle large sales volumes.

Integration with third parties: Google is integrating with Shopify for inventory and order management, making it easier for sellers. Along with Shopify, it has also collaborated with PayPal for efficient payment processing. For sellers on Shopify, the "buy on Google' orders can directly be managed through Shopify, making this integration a complete win for them.

Accessibility for sellers: The combination of free product listing and commission-free "buy on Google' will make Google shopping a conducive option for a larger set of sellers. Furthermore, this would also help retailers streamline their order management and payment processes as everything will be managed in one place.

Support for small and medium business: A new filter will be introduced on the shopping tab to improve the discovery of small and medium businesses. More so, Google aims to tackle the entry barrier for businesses that couldn't afford to sell on other competitor platforms. It will introduce more features that would make the onboarding journey of these SMBs a lot easier.

Easier data handling: With commonly used product feed formats, Google is providing a new option that allows retailers to add product information like images or technical specifications, without having to reformat or upload it from scratch. Along with this, it will leverage the buyer's Google account information such as ordering details to enhance the shopper journey.

Increased customer reach: With this new update, more sellers would enroll with Google shopping which means a wide range of products would be available in the Google Marketplace. The increase in product options would, in turn, pull in more shoppers that would stay inside the Google ecosystem for a longer duration.

While "Buy on Google' offers a great way to reach a larger set of audiences, businesses running an e-commerce store may face challenges in lead-generation through their website. Each sale through Google can be directly correlated to one more buyer not visiting your website. This would mean missing out on a plausible lead as customers tend to opt for exclusive mailing services or memberships when visiting your website. In such a scenario, while Google shopping can help with accelerating your sales, it may hinder building a brand loyal audience.

In summary, this commission-free access to "buy on Google' presents a highly lucrative option for businesses to enter the Google shopping landscape, if you haven't already. With increased traffic, third party integration, streamlined order management, and seamless payment processing, this new release can prove to be beneficial for all the sellers in the market. For SMBs and businesses newly entering the e-commerce market, this update can be a major advantage to provide an initial push to your business.

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Kiran Patil

Founder and CEO of Growisto

Kiran Patil is the founder and CEO of Growisto, a rising e-commerce marketing and technology company. An alumnus of IIT Bombay, he has over 16 years of experience in e-commerce and digital marketing. His entrepreneurial spirit and unwavering attitude have helped online businesses grow to their full potential. When not absorbed in being a business transformation catalyst, he loves traveling, cycling and trekking in unexplored destinations.


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