Posts

Google is dropping its commission fees for retailers selling their products using the Buy on Google platform.

The company announced the decision late last week, while also revealing that it would be adding integration for third-party services like Shopify and PayPal to make using the platform easier than ever. 

For now, the commission-free program is starting with a pilot test which will be expanded to all U.S. retailers by early 2021. 

Why It Matters

When paired with Google’s recent decision to include free product listings in search results, it is clear that the search engine is hoping to make it convenient and easy for businesses to transition to online sales. 

The decision also gives Google a leg up on many other online sales services, such as Amazon. The massive name in online shopping typically charges retailers between 8% to 15% in fees per item sold. 

With the ongoing wave of COVID-19 infections occurring across America, the removal of fees could open the door to an alternate revenue stream for many small businesses that are struggling at the moment. 

Focus on Small Businesses

Speaking of small businesses, Google will also be adding a filter to the Google Shopping tab which will allow shoppers to specifically buy from SMBs. 

“While we still have much work ahead of us, our goal is to make digital commerce more accessible for retailers of all sizes all around the world, giving consumers more choice and more ways to find the best products, stores, and prices,” Bill Ready, Google’s president of commerce, said in the announcement

Facebook is launching a major overhaul called Shops which will make it easier for brands to sell their products to users without sending them off the social network. 

In theory, the move would allow e-commerce businesses to operate their entire business over Facebook, without an external website or online shop.

With Facebook Shops, businesses can turn their Facebook pages into completely shoppable storefronts. The company also plans to extend the feature to Instagram in the near future.

While the service is free to set up on the social networks, it is powered by third-party services such as Shopify, BigCommerce, and Woo which tend to require a fee or subscription to use. Additionally, the service will charge a fee when customers complete a transaction using the feature. 

Businesses will also be able to include their shops in Stories or buy ads to promote their shops and products across the social networks. However, it is unknown exactly what those ads will look like when they arrive.

In a blog post, Facebook indicated they will be working to integrate loyalty programs into their online shop sometime soon. 

“You’ll be able to easily see and keep track of your points and rewards,” said a company representative. “And we’re exploring ways to help small businesses create, manage, and surface a loyalty program on Facebook Shops.”

While discussing the move in a live stream, CEO Mark Zuckerberg suggested that brands struggling to recover from the COVID-19 shutdowns could use the feature to connect with new and existing customers.

“If you can’t physically open your store or restaurant, you can still take orders online and ship them to people,” said Zuckerberg. “We’re seeing a lot of small businesses that never had online businesses get online for the first time.”