Google Shopping costs increase for small businesses 

The costs of Google Shopping to small companies have increased dramatically, while most businesses believe the Google 'Buy Now' button will be bad for their sales, research finds.

The study of 1,000 SMEs across the UK by PPC agency Koozai found that 66 per cent of businesses believe the costs of Google Shopping are rising for their business.

Of these, 37 per cent say costs had increased between 30 per cent and 40 per cent, 20 per cent of businesses say costs had increased between 20 per cent and 30 per cent, while 13 per cent and 11 per cent has seen rising costs respectively of 10 per cent to 20 per cent and more than 40 per cent.

Google Shopping allows consumers to search for products on online shopping websites and compare prices between different vendors.

Despite the increase in prices, 62 per cent of businesses still claim that Google Shopping provides a good return on investment for their business.

Compared with the Google Search Network, 49 per cent say that the Google Shopping return on investment is better, with only 19 per cent saying return on investment is lower, and 17 per cent saying it is the same.  

Some 42 per cent say the introduction of Google’s ‘Buy Now’ button would negatively impact their sales, with only 27 per cent saying it would be positive and 31 per cent not knowing either way.

The survey also asks businesses about the launch of Google’s Manufacturer Center, which now gives manufacturers more control over how products are displayed.

More than two thirds (68 per cent) of respondents say they would prefer to keep control of how products are displayed, with only 18 per cent liking the changes.

Samantha Noble, marketing director of Koozai says that Google Shopping is growing dramatically and as a result competitor demand is pushing up prices.

‘It is a platform that is designed to attract buyers that are at the point of sale making the ROI potential really significant if the campaigns are executed and managed correctly. Many businesses are finding that Google Shopping gives them a better return on investment than the traditional Google Search Network,’ Noble says. 

‘This backs up a lot of research that shows shopper intent plays a large part in making Google Shopping successful.

‘I am looking forward to seeing how Google Shopping campaigns perform with all the additional features that have been added in the run up to the busy Christmas holiday season when shopping sales will be at their peak.’

Further reading on e-commerce

Ben Lobel

Ben Lobel

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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