Google ShoppingShopping, Google’s product search engine will start charging retailers wanting their items to appear within search results. That pay-for-play model might hurt specific retailers, yet reaction thus far has been more on a positive note than expected, according to Mark Mallard of Rimm-Kaufman’s. ‘Numerous retailers expressed optimism that this change will assist in fighting cost erosion and get rid of low-quality merchants.’

Google is eliminating its free-of-charge item search model, instead, choosing to charge retailers and merchants to appear within Google item search listings.

Retailers currently could offer data concerning their items then add them to their search listings free-of-charge, in which they’re ranked by price and popularity. Beneath the newer model, called ‘Google Shopping,’ retailers are going to be required to pay to appear within search results.

Rankings then will be decided by merchant bid cost plus relevance. The items are going to appear within Google Shopping boxes that is going to feature the paid search results within ‘sponsored’ boxes beyond the normal search results.

Google Shopping currently is in an experimental stage and is going to be finished in the fall. The search business hopes that sustaining a commercial relationship with the retailers will assist them in keeping their item listings updated.  Accurate and fresh search results lead to a better Internet shopping experience for customers and as a consequence, more revenue for merchants, according to VP of product management for Google Shopping Sameer Samat, within a recent blog post.

Besides developing what Google claims is going to be a better experience for shoppers and merchants, the newer model also could increase Google’s profit margin.

Sr. research analyst with Rimm-Kaufman Group, Mark Ballard, added that ‘based upon our consumer’s results, we’d expect Google Shopping to boost Google’s paid click total within the neighborhood of 2% – 5% over the long run. That isn’t a massive percentage, yet it’d eventually mean billions more within revenue for Google.’

Ballard also added that profit likely is to come without several complaints from retailers.


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