Google Takes a Swing at Amazon
Google is putting up a fierce fight in order to garner a greater market share of the eCommerce market by speaking directly to its vender’s needs and more importantly, to their wallets. Google reported for the first time this week that it will be charging no fees for venders to list items on the Google Marketplace. In addition, Google will be including the items listed in their Marketplace in Google’s search results for free and will be wiping out commission expenses for vendors when they make sales on Google’s platform as well.
Commissions which normally extend from around 4% to 17% on average being taken out of the equation will undoubtably open this medium of eCommerce sales to many more vendors. Previously many venders viewed Google Marketplace as an unviable avenue to generate revenues due to the high commission costs associated with the platform which decimated seller’s profit margins. The ridding of these high commissions will likely attract many sellers to the platform and with more sellers comes more products and eventually more customers.
Additionally, Google will also be allowing for the first time ever the use of third-party payment processing platforms such as Paypal and third-party inventory maintenance platforms such as Shopify and BigCommerce to be used within the marketplace. These big moves are likely an effort to aggregate a larger base of customers and present themselves as a serious competitor within the growing eCommerce industry to Amazon and Google’s shareholders.
So, What Does This All Mean For Me?
Additional streams of revenue that you can now gain through the Google Marketplace with the help of its integration into an existing inventory management platform such as Shopify or BigCommerce represent more than just changes to Google’s stance on eCommerce and Amazon. These changes to Google’s policies represent something bigger, Google’s policy changes represent possible changes to the overall economy and consumer behavior. Google’s furthering of investments into the eCommerce industry signals that the future of commerce in general may very well be shifting to weigh more heavily on eCommerce in the near and distant future. We have witnessed such massive changes in the past and triggers such as Covid-19 undoubtably have the potential to accelerate what was an already changing marketplace.
Since the start of COVID-19 in early March of 2020 a lot of shoppers have transitioned to web based purchases as opposed to visiting brick and mortar locations and potentially risking their own and their loved one’s health. There is some agreement among specialists in the fields of business and economics that a sizeable portion of this unexpected move to internet shopping will become the new “normal” for business transactions and the customers who carry them out. As indicated by Adobe Analytics, U.S. customers burned through $73.2 billion online in June of 2020 alone. This amount represents a 76% increase from the same time period in 2019! It is likely that this trend of online shopping is not a trend at all. By analyzing this change in shopping behavior through the lens of behavioral economics one is likely to realize that the brick and mortar storefront faces a bleak future in the global economy.
By using Fowara’s expertise to your advantage to build you an amazing eCommerce platform while also taking advantage of Google’s new Marketplace policies you can truly metamorphosize your small business into a global powerhouse! The massive exposure you can now gain through Googles search engine and the new and improved Google Marketplace means even small mom and pop stores like yours can compete on the global stage! Reach out to Fowara today and begin your company’s transition.