The demand for Google is off the charts. Across the world web, Google has more than 4 billion users, of whom 50 percent are from the United States. With these figures, one cannot imagine the level of influence Google has on its users. Considering the popularity of this search engine, many people read and follow its content. Similarly, the majority of products or services backed by it get a considerable attraction. Google backs these sellers and their products through some of its features. One trending feature is Google Shopping. Through this, Google displays millions of products and services globally on its platform. This is an excellent technique to drive traffic and sales. In light of both recognizing the convenience of shoppers and providing sellers with an edge, Google shopping is the hot trend.
With approximately 40 million search ads and thousands of merchants registered, Google shopping has become increasingly important for sellers. A seller has to provide its product feed (details) to list the product on Google shopping. This listing is generated and controlled by Google. Using this feature is a breeze. Keep reading this blog post because it will help your business.
Does It Work?
At present, most sellers have registered themselves through Google Merchant Center accounts. It is because Google shopping shows 30% better results than Google ads or any other e-commerce website. Not only does it cut the heavy text work, but it also adds a visual touch. These USPs act as an advantage for sellers. This advantage doesn’t come easily. Google shopping works miraculously if a seller has mentioned the product feed. A feed includes a brand name, product title, and image of the product featured. This information is presented as an attribute to make the user’s search work in favor. Many times, putting together a strong feed serves to be a difficult task. But if the product details given by sellers are tailored according to the guidelines of the marketplace, then the Google algorithm works most effectively with the buyer’s search words. Google algorithm ranks the product from the most relevant to the least relevant. Afterward, if a user makes an exact or a substitute search, the product information given by the seller gets referenced. The search engine then filters the products, and the most relevant products appear.
Now we have a hint of what a seller does. Apart from listing, there’s a lot to do. When the sellers put their products on display, the advantages anticipated are technical and monetary. As you proceed, you will encounter multiple benefits that will bring your business near revenue.
Click Through Rate and ROI
Click-through rate (CTR) is a crucial metric for advertisers. It is the only way to determine the number of customers who click on a product. Google uses a CTR to rank the seller. The higher the CTR, the lower the cost per click (CPC). As discussed earlier, the relevancy of a product is dependent on how apt its description is. Thus, if the feed matches users’ search, CTR increases. This mantra of Google is highly effective and economical for sellers as it aims at reducing the unnecessary cost.
Additionally, the search engine also allows sellers to set their benchmarks for CTR. These benchmarks help advertisers and Google determine whether the Google Ads click-through rate is higher or lower than average in the product category industry.
A CPC is : Cost of clicks / Total number of clicks
In the formula above, it is evident that the cost of a click can be dominated by the number of clicks. These two elements are interlinked. If a brand witnessed a high number of clicks then it is a profitable situation. If one improves CTR, then the return on investment also increases. Clicks from a high-ranking product boost the quality score and lower the cost per click. Thus, a seller only needs to increase the quality of their content, which will lead to a rise in ad rank and the reverse.
The Traffic Of High Quality
As a result of the above advantage, the user’s search is already a filtered search. Before the user clicks on your product, they know that it is relevant to their needs. Additionally, they also learn about your product through title, picture, price, and brand name. Thus, only buyers with a strong desire to buy the product would visit the seller’s website. Moreover, your product is displayed just before that of your competitors, reducing the possibility of buyers clicking anywhere else after clicking yours.
A clear process like this helps buyers buy with confidence and decreases unnecessary ‘add to carts,’ which usually ends in no purchase. The conversion rate here is higher than usual. Buyers are most likely to purchase the product. Not only purchase but they take away an impression of complete product transparency maintained. This isn’t a usual case when we speak of Amazon-sponsored features or Google ads.
No Commission Charges and Smooth Management
Previously, Google used to follow a cost-per-sale model where merchants had to pay commission to Google. Google charged a fee for each purchase, just as marketplaces required retailers to pay. However, Google removed the commission policy on 23 July 2020. Due to this, sellers benefited, as they no longer had to bear the extra cost. If you already sell on Google, a 5% commission will apply, but it will be removed shortly after certain formalities. In contrast, a completely new seller on Google Shopping will get an edge over others as they will be charged 0% commission from the very start.
Such an effort by Google has benefitted maximum sellers in the market. It is an advantage for those who are new to the market.
Another added advantage for a seller is its smooth management. This feature allows a merchant to get rid of keyword-making and SEO processes for product titles to rank better. Here, a seller has to enter the correct product specifications carefully. This data can get uploaded manually by various description generation tools. Furthermore, for the free product listings (Buy on Google) and the shopping actions, a seller does not have to create perfect keyword sagas. Merchants can submit a ‘product feed’ to Google Merchant Center. And voilà, listings will be live soon!
Broader Reach and Competition
Google specifically targets people with an ‘intention to buy.’ As discussed above, it filters the search results and shows the suitable product to the buyer. That narrows the competition funnel of a seller. Also, it decreases competition by using ‘Geotargeting.’ This kind of targeting happens through Google, which shows only stores near the buyer’s address.
Google displays the best products. As a result, it also rejects sellers’ products many times because they do not fit the listing criteria. Sellers will benefit from knowing the product’s potential, which will lead to them creating better specifications in the future.
One of the most guessed benefits is market reach. As the search engine is used by many, thus a merchant sailing here is eventually benefitted. Google has such a broad customer base that it can create micro and macro markets for individual merchants and brands. It maintains an impression of a product through various features like reviews. Google gathers reviews of the product from the previous customer for that product and helps with the ratings. A good rating on the top is a benefit to the seller.
Are You With Us?
The Google Shopping feature is a win-win for sellers. Not only does this feature generate interest, but it is also a filtered approach to generating revenue. Despite this, with every great feature, there is a lot of work to be done beforehand. In a world filled with 10 million alternatives, it is not easy to create a product description and marketing strategy that stands out. Ergode emphasizes the importance of following the correct specifications and guidelines when it comes to getting maximum benefits. The next step would be to contact us to help you get started on this new adventure.
