Lower Barriers for Small Businesses as Google Eliminates Commission Fees on Shopping Platform

Google is creating an easier path for sellers to be present across multiple channels. By removing its commission from “Buy on Google,” Google has made it a better opportunity for businesses to sell on its platform. 

With its prior model, Google’s commission acted similarly to Amazon’s fees. Depending on what you sell on Amazon, you can expect to lose about 15 percent of each sale to fees. This profit loss can be a deterrent for smaller businesses looking to increase their visibility by being on multiple channels.

Their new approach lowers the cost of doing business on Google and removes barriers to sellers — making it easier than ever for small businesses to have an omnichannel presence that reaches ready-to-convert consumers.

What does this mean for established brands?

With no commission on “Buy on Google,” established brands have yet another channel to reach their customers. With additional changes to feed formats and ways to add product information, Google is making access to “Buy on Google” as seamless as possible. Having an omnichannel presence has never been more important than during a pandemic as consumers are finding new ways and channels to browse for products. According to Fox Business and eMarketer, more than 204 million consumers will make an online purchase during the pandemic.

Key Takeaway:

By eliminating commission fees on their platform, Google Shopping becomes a more attractive option for small businesses looking to expand their offers to channels outside of their branded website.