+31 votes
by (650 points)
Google Shopping now free?  I'm looking for the catch.Google Shopping now free? I'm looking for the catch.  
https://www.theverge.com/2020/4/21/...lV93c
Google Shopping now free?  I'm looking for the catch.

20 Answers

+2 votes
by (1.4k points)
 
Best answer
The catch is in the volume. there will be a ton of new people on google shopping and over time they will make it non-free again ;)
by (230 points)
They pulled that stunt years ago. When you have a tiny profit margins, Google shopping was the only way to sell if you were a small business or startup (Google stopped being a champion of small companies years ago in favor of the giants with deep pockets)
+18 votes
by (710 points)
Only US for now right ?  
+17 votes
by (480 points)
The catch is more exposure if you pay. So you will see some activity, if you like what you see, they will ask you to pay to get more
by (250 points)
@corliss40 exactly!  
+9 votes
by (900 points)
I have been reading this a week ago. Please correct me if I am wrong: does it mean, that shopping campaigns will be running without an ad spend? What happens to auctions in this case? How the algorithm will prioritize the position of an ad in the shopping listing? Based on ad rank/quality score?  
by (200 points)
@hydnocarpate, nope, ads will still have their place in the results. My guess would be they will be on top, so the advertisers keep paying.  
by (840 points)
@mateo5 That's my guess too. Just like Search. Organic results with paid in the best spots
+5 votes
by (370 points)
Google Organic is free too. Wanna be at the top right away? PAY!  
by (230 points)
Not any more. ROI on PPC is extremely poor these days with bids so high, any profits you make will be gobbled up. PPC is only good for marketing any more - so budget it for marketing, just don't expect to make any money unless you have a 50% or more profit margin on your products (forget about selling cheap products - only 2 or 3 $1. 50 clicks and your margin is gone).  
by (390 points)
@songstress organic traffic is very doable. If you are understand SEO if you do not need to pay to be at the top. Most people scroll past ads to find trustworthy companies who are ranking organically.  
by (1.8k points)
@macropterous17 - I get around 7-8x roas with shopping consistanly.  
by (7.4k points)
@macropterous17 the issue there is your margins friend, not Google.  
by (590 points)
@lantha5942 same
by (230 points)
@cowper - True. That wasn't an issue years ago on Google when clicks hovered at far lower cost (competition has a lot to do with this, naturally, but also Google's recommendations has certainly had a hand in this - and who can blame them? - they quadruple their profits). Another issue that has cropped up is manufacturers competing for the same keywords as actual sellers (driving the cost per click into the stratosphere - I've seen a manufacturers with $15 clicks! ) . Or any entity that doesn't actually sell products via the web to consumers (some distributors, forums, social media, etc). It doesn't seem too bright to compete with your own sellers and driving their own prices upwards making them less competitive in the marketplace. Google doesn't care where that payperclick goes to - even if a Google searcher gets taken to a page that doesn't actually sell the product! This is a bad user experience (and a contradiction of their own policy of "enhancing user experience" by taking visitors to sites they wish to visit). They allow this, because, well, profit. I can't say how many times I've looked for a product to buy, and was taken to a manufacturer's page (they paid for the click) instead of to an online store where I can actually purchase the product (in my personal searches as a user). Google's practice of not making a purchasable product landing page ("Products" tab) mandatory for PPC account holders is indicative that they truly do not care about shopper's experience. Just an observation. I agree that a high profit margin (and/or big ticket items) is a must, but in some markets, that's just not possible so PPC is a non-solution. I used to sell $5 bumper stickers (got them for about $1, but PPC rates just to stay humbly on page five was still around $1 /click) - the margin was huge, however, if 20% of those who clicked made a purchase (considered an excellent buy rate for many things), I would pay out money to give it away "for free". I shut off my paid campaign immediately, and, used Google Products for free back then, a couple of weeks later, Google decided to charge for it, so I shut the company down since the traffic vaporized and I hadn't been in biz long enough for SEO to take off (GP WAS my SEO and, for many people, the ONLY way to sell cheap products on your own website - Amazon has helped in that regard - paying only when you sell).  
+10 votes
by (13.2k points)
Used to be free if you recall
+16 votes
by (980 points)
It's only free under the shopping tab in google search (not all clicks but some) expect it to be about 10-15% of clicks, maybe more for smaller businesses. Trying to take some market share back from Amazon I reckon.  
by (9.4k points)
@mountbatten more like <5%
by (980 points)
@eastern smaller businesses I'm seeing more currently, maybe in time it will go down, will be interesting to see.  
+17 votes
by (9.4k points)
The catch is that nobody uses the Shopping tab, and even if they do, I’ll have my ads wrapped around the free listings.  
by (230 points)
Savvy shoppers are staying away from places with big ads. Big ads = more expensive. Who wants to pay more for the same thing they can get on page 5 of search results or on the Shopping tab?  
by (9.4k points)
I get 10+% ctr and 10% conversions at full price, I’m happy to let the savvy shoppers go
by (7.4k points)
@eastern 10% conversion rate on an e-commerce store? Can you prove that?  
by (9.4k points)
@cowper not storewide, just on the products I manage from the Shopping campaigns. The trick is controlling the keywords to the exact match level.  
by (1.1k points)
@eastern very much interested how you go about this, currently i'm manually bidding per product based on the acceptable CPA. i have all products split out in 1 adgroup. just around 200 product so perfectly managable. would you advisr otherwise?  
+18 votes
by (13.2k points)
They will put paid ads on top, lure people in, those people will see it and go for paid ads. Used to be free anyways. If I recall correctly their excuse was to make relevant user experience through CPC.  
+11 votes
by (940 points)
From first results with my clients, non-paid traffic in shopping represents 2% of the number of clicks (paid+non-paid) from Google Shopping.  
+11 votes
by (16.1k points)
I think that also it is about the data. Google wants to collect data. They push structured snippets, but only people who do SEO implement them. Now, all people who want 'free shopping ads' should implement them and/or upload a feed file with all products.  
by (2.5k points)
@raynell9 so true, this was the first thing that popped into my head when they announced this. I believe this to be the number one reason and the most frightening.  
+3 votes
by (670 points)
Lol but not gun parts
+16 votes
by (650 points)
I agree mot of all with Ben's comment above: They are relying to take market share back from Amazon. Amazon is more than 50% of online sales now, so it's time for Google to put their eye back on the ball!  
+12 votes
by (630 points)
SERP still costs
+11 votes
by (1.1k points)
Thanks for sharing this
+19 votes
by (1.7k points)
So should all the bids go down in cost in this way ? I don’t understand , where is the catch? they will loose billions
+17 votes
by (760 points)
Top listings will be paid. Soooo increased click prices for top positions  
+18 votes
by (370 points)
1. All the stores put their products for free there 2. Consumers goes to google shopping because they have all the products 3. Google gets more and better data on what everyone is looking to buy 4. Their normal ads get more effective 5. They can charge more for their ads since they work better 6. Profit
by (950 points)
It allows Google to squeeze profit margins and charge more for advertising, very much like the trojan horse of google analytics.  
by (370 points)
@gagliardi668 yes and no. If their data is better they can charge more per click because the traffic will be more likely to convert. It is a win-win for the advertiser and google.  
by (9.4k points)
@endbrain7137 it’s why they have free web search results, right?  
by (370 points)
@eastern yea exactly
+9 votes
by (360 points)
Amazon is making enemies.  
+15 votes
by (370 points)
How else do you defeat Amazon
by (950 points)
Which is the lesser of the evils? Amazon or Google?  
by (370 points)
@gagliardi668 they are both one in the same problem. You cannot provide convenience without being about to predict ones wants, you can not know someones wants without knowing them personally and deeply.  
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