Google Merchant ServicesAug 16, 2020
Like other online payment providers, Google has always charged a commission fee for sales made through its platform. Now, in a pilot launch, Google is charging zero commission fees when customers make purchases through the ‘Buy on Google’ option.
The greatest advantage ‘Buy on Google’ offers over other payment options is the streamlined buying process. Customers literally buy on Google. There’s no need to visit another page.
Google states in an announcement:
“By removing our commission fees, we’re lowering the cost of doing business and making it even easier for retailers of all sizes to sell directly on Google.”
Many of the web’s leading payment providers charge serious fees for retailers to conduct business using their platform. That’s all part of the cost of doing business online though… or is it?
All of a sudden retailers have an option to accept payments online and not pay out a commission fee with this new change from Google
This gives Google a competitive advantage over other payment providers.
If the same product is sold through both ‘Buy on Google’ and a competitor, the retailer will keep more of the money from the ‘Buy on Google’ purchase.
With that in mind, retailers may shift their focus toward driving sales via ‘Buy on Google’ to increase their profits.
That would in turn create competition for platforms like Shopify and PayPal. In exchange for zero commissions, Google reaps the benefits that come with keeping a user in Google search results.
The longer someone stays inside the Google ecosystem the more money Google can make serving ads and collecting data.
Therein lies the catch for retailers.
Every time a sale is made through Google that’s one more customer not visiting the retailer’s website. When a customer visits a retailer’s website they may opt-in to things like memberships or mailing lists, which are key for customer loyalty. However
It's something businesses need to consider before being easily swayed by zero commissions. However, customers want to buy things quickly and making them go through too many steps cools off a sale. If you have a retail business and want to try out Google Merchant Services - now is the time.
Give it a try with some of your products and see if online sales could be a new profitable sector of your business. Amazon is not going to like this, but frankly - who cares?
Don't miss a beat!
New moves, motivation, and classes delivered to your inbox.
We hate SPAM. We will never sell your information, for any reason.