Google Shopping “buy” buttons could start appearing on select Google mobile search ads in a just a few short weeks. This new feature would allow Google to compete head on with Amazon and Ebay as all-in-one online marketplaces.
According to The Wall Street Journal, Macy’s is among the retailers in negotiations with Google to join the launch. Many retailers are worried that Google’s inclusion into the buying process will hinder customer relationships and give Google access to valued sales data.
How It Works
When users click a buy button from a Google Shopping ad, they will be taken to a unique landing page to complete their purchase. Retailers will continue to handle all shipping and processing. Google will allow opt-ins to merchant marketing programs, so retailers can continue to market to their customers as they do when transactions take place on their own sites. This means retailers will still get address information and email addresses for future marketing efforts, as long as shoppers opt-in.
There was similar reluctance from merchants with Google’s Trusted Stores program, which required retailers to share order and shipping data feeds with Google in order to participate until requirements were changed earlier this year.
The Main Benefit
Google’s real selling point is that, unlike Amazon and Ebay, participating advertisers will not have to forego a percentage of the transaction. They will only continue to charge per ad click. That in turn could help allure large retailers that may have resisted this type of participation in the past.
Customer payment information will not be passed on to the retailers, but rather, after Google gets the money from shoppers it will pass the payment on to the retailer. They will be offering a wide range of payment options, including payment methods from other providers, as well as allowing customers to store their personal information so the transaction can be made with fewer clicks.
On a related note, Google debuted links to food delivery ordering and table and appointment-booking services in Google Search and Google Maps just last week. They are pushing to make these changes because of the swell in smartphone usage, stating that searches on mobile devices outnumber those on desktop computers in 10 countries, including in the U.S. These features are just another step toward the encompassing Google marketplace.