Google is looking to generate revenue from product searches

Angelica Greene
March 20, 2018

Google today announced the launch of a new program called Shopping Actions. It also depends on whether Shopping Actions can really be a "seamless shopping experience" like retailers and Google are hoping it will be.

"We have taken a fundamentally different approach from the likes of Amazon because we see ourselves as an enabler of retail", Daniel Alegre, Google's president for retail and shopping, told Reuters. "We see ourselves as part of a solution for retailers to be able to drive better transactions".

"It's clear that people want helpful, personal, and frictionless interactions that allow them to shop wherever and however they want - from making decisions on what to buy, to building baskets, to checking out more quickly than ever before", Google said.

Expect to see more "buy" buttons in your Google searches in the near future, as the search company is teaming up with major retailers to better compete with Amazon. It must be noted that this cut is different from the ads revenue that the company makes.

Shopping Actions is an effort by Google and retailers to counteract the popularity of Amazon.

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The tech giant's new initiative revolves around a new program that will allow the retailers to list their products for sale across the Google ecosystem. Over the past two years, mobile searches asking where to buy products soared by 85 percent. This large and rapidly growing market reach could put the company in a strong position to take some share away from Amazon, which itself has challenged Google's search dominance because so many people go directly to Amazon.com to search for products.

One example Google gave in its blog was of a customer that can search for hand soap, find a sponsored listing for Target's branded soap, and add it to a cart on Google Express, then purchase aluminum foil using the Google Assistants voice search capability, and use one streamlined site to purchase all her items. Further, the company added: "44% of those who use their voice-activated speaker at least weekly say they use the device to order products they need like groceries and household items at least once a week".

A study conducted with MasterCard among five merchants participating in Shopping Actions shows a customer spent more with that group of merchants in the four-month period following the integration.

For instance, during the past six months, Target has seen the size of its guests' Google Express baskets on average increase by almost 20%.Ulta Beauty's average order value on Google Express rose 35% since 2016.

Other reports by GizPress

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