Google has ramped up its competition against Amazon and is now steadily on the path of transformation of its e-commerce platform into an Amazon competitor.
The technology giant has been trying to recruit more sellers to Google shopping since it offered free listings of products on the e-commerce platform. As a step ahead, it has eliminated fees charged as commission for retailers who list and sell items directly through Google on Thursday, the company commented in a blog post.
Google Commerce President Bill Ready wrote, “These changes are about providing all businesses—from small stores to national chains and online marketplaces—the best place to connect with customers, regardless of where a purchase eventually occurs.” He further added that “with more products and stores available for discovery and the option to buy directly on Google or on a retailer’s site, shoppers will have more choice across the board.”
In the past, Google charged shopping commissions from 5 to 15 percent depending on how many items were sold. It has also opened its platform to third-party payment providers like Shopify and PayPal on Thursday for retailers who sell directly on Google.
Additionally, the Google Shopping tag will have a filter that features small businesses for people who want to support small or local shops as an outcome of the COVID pandemic which redefined the shopping habits of people, as millions are now practicing safe distancing and are a changing to e-commerce being the only safe option left to generate revenue.
Large scale closure of multiple businesses has pushed the e-commerce model into a faster growth trajectory. These changes will put Google in a more competitive position against Amazon, eBay, and other e-commerce platforms.
Amazon’s individual seller plan costs $0.99 per unit sold, according to its website, and its Professional plan costs $39.99 per month for an unlimited number of units sold. In addition. sellers pay a referral fee percentage ranging from 5 to 20 percent per item depending on the item’s category. Some sellers may be subject to additional costs.
Facebook has also been ramping up its e-commerce efforts with its Facebook Shops, Facebook Marketplace, and Instagram Shopping. It charges a 5-percent commission fee for every transaction more than $8 or a $0.40 commission fee for orders less than $8.
As per e-commerce research website eMarketer’s July 22 executive summary, the US-commerce sales are expected to surge 18 percent to nearly $710 billion in 2020 while brick-and-mortar retail sales will drop 14 percent to more than $4 trillion,
Executives also estimate Amazon’s e-commerce sales will make up 38 percent of total U.S. e-commerce sales in 2020. It is poised to dominate in book, music, and video sales; its grocery sales will also see significant growth, eMarketer research indicated.
