Marketing 2 min read

Google Makes "Buy on Google" Commission-Free for Retailers

Vladimka production / Shutterstock.com

Vladimka production / Shutterstock.com

Sellers using "Buy on Google" checkout option will no longer have to pay a commission fee. Google has also opened the platform to third-party providers.

Google first introduced the “Buy on Google” feature back in 2015.

It’s a payment option that allows consumers to buy products directly from Google’s search results. Consumers only get the option when they click on Shopping Listings in search results.

Buy on Google” offers retailers a simplified checkout process, which would improve mobile conversions. In turn, the participating retailer had to pay a commission fee for sales made through the platform.

But that’s no longer the case. In a pilot launch, Google is now charging zero commission when consumers make purchases using the “Buy on Google” option.

In the blog post announcement, Commerce President at Google, Bill Ready wrote:

“Today, we’re taking another important step to make it easier for retailers to sell on Google. Soon, sellers who participate in our Buy on Google checkout experience will no longer have to pay us a commission fee.”

In addition to making the platform commission-free, Google is also allowing third-party providers — starting with PayPal and Shopify.

The announcement raises an important question.

What Does Google Get Out of a Commission-Free “Buy on Google”?

Google’s benefit comes from keeping users within its search result page. When users remain in the ecosystem, the search giant can make more money by serving ads and collecting data.

As said earlier, the “Buy on Google” feature makes the checkout process smoother for potential buyers. Now, it also provides more revenue for retailers as a result of the zero commission policy.

But there’s a catch.

The feature ensures that potential customers don’t have to visit the retailer’s site to make a purchase. As such, retailers can’t leverage valuable lead generation opportunities unique to the on-site sales page — for example, membership and mailing lists.

The commission-free Buy on Google and third party-options will first roll out in the United States. After that, Google will extend the features to the rest of the world later in the year and 2021.

Read More: Google Adds Visual Options to Help Brands Grow Their Online Sales

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