Google Will No Longer Take Commission Fees From Retailers To List Products On Its Shopping Platform

In an attempt to compete with Amazon in the eCommerce industry, Google has finally decided to eliminate the commission fees for retailers who want to list and sell products through the search engine’s shopping platform.

Prior to this constructive move, Google used to charge merchants with a certain portion of commission on sales if any of the retailers wanted to take advantage of Buy with Google program in order to make customers buy their product’s through Google’s website instead of going to any other digital store for the purchase. Approximately the fees stood at 10% to 15% of the sales when compared with Amazon’s rates.

But that fees will now be gone with the testing phase already starting in the US.

Google’s main goal with this change is to lure sellers to list their items on the platform instead of skipping the option due to extra fees. Furthermore, according to Bill Ready, President of Google's Commerce Division, the removal of the commission barrier now will make it even more easy for sellers to grab the attention of potential buyers for a product as soon as they will begin with the Google search.

For consumers, on the other hand, this change would now mean a large variety of products readily available with one Google search click. This would also mean that sellers would have to invest more in paid product ads in order to make sure that they are rightly visible in the marketplace.

Google isn’t considered a major player in the E-commerce world for now. If we go by stats provided by the eMarketer, in the USA alone, Amazon is the undisputed king of online sales with 38% of share in the market. Walmart stands at second with just 6% followed by eBay at 4.5%. Not so surprisingly, Google doesn’t even appear in the top ten.

Another addition to the list of amazing benefits for the sellers is also how they can now import their inventory data to Google’s services irrespective of which E-commerce platform they are already using including Amazon as well. Google has also partnered up with PayPal and Shopify to make sure that payment processing and order management are as smooth as customers and sellers would both like it to be.

There is no doubt in the fact that the rivalry with Amazon will become fierce with this move. These two tech giants already fight for dominance on multiple fronts and one of them includes smart home technology. Lately, Google has been trying its best with a smart speaker and Assistant voice software to compete with the dominance of Amazon’s Echo and Alexa.

Google hasn’t revealed any information regarding how many merchants have already registered with Buy with Google program and how much revenue the company has already earned in the name of the commission fees.

Read next: Google Search Will Now Enable Mobile-first Indexing for All Websites In March 2021
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