Google has announced through their Commerce blog that the current shopping search feature will be turned into a new shopping search engine called “Google Shopping” for users in the United States in this fall. Currently, the service is free and search results of product are based predominantly on relevance. But, it won’t be free much longer for advertisers according to the new announcement. After the service is commenced, merchants have to bid for top spots in the Google Shopping results which will be marked as Sponsored.
Sameer Samat, Vice president of product management at Google, explained in the Google Commerce blog that Google Shopping will be made on its present Product Listing Ads.
“We believe that having a commercial relationship with merchants will encourage them to keep their product information fresh and up to date,” Samat wrote. “Higher quality data — whether it’s accurate prices, the latest offers or product availability — should mean better shopping results for users, which in turn should create higher quality traffic for merchants.”
It seems, with Google Shopping, users will actually be seeing vendor’s paid product listings which they have set to see. According to Eric Best, CEO of Mercent, it would help retailers to sell product through Google Shopping and other e-commerce websites such as Amazon and eBay. Best said,”Today, that model goes away, it is a very big deal.”
He also said it has upsides and downsides part for retailers. He explained “The downside is that retailers are going to have to pay for performance when it comes to e-commerce traffic and revenue driven by or through Google, the free traffic is disappearing”.