Google's New Paid Shopping Model: Good For Google or Amazon?
by, 09-12-2012 at 10:55 PM (3394 Views)
While Google is "Building A Better Shopping Experience", Amazon is taking advantage of the increased shopping searches being done now while Google is changing their platform. Eventually, the Google product search will include only paid ads from companies.
In late May, [URL="http://mashable.com/2012/05/31/google-overhaul-shopping-service/"]Google announced[/URL] that it would be reorganizing its Product Search results, which appear on searches at google.com (under a “Google Shopping” subheader, see screenshot below) and at [URL="http://www.google.com/shopping"]google.com/shopping[/URL], based on paid listings. Previously, search results were entirely organic, unaffected by the amount retailers were spending with the search giant. At present, both free and paid listings appear under Google Shopping results.
Come this fall however, only paid listings will appear in Google Shopping results in the U.S. (and in Europe and Asia next year). Results will still be ranked largely by relevance, “with bidding as an additional factor,” a Google spokesperson said. Natural results will still appear below sponsored results on google.com.
According to [URL="http://www.minyanville.com/business-news/editors-pick/articles/google-goog-amazon-amzn-google-shopping/9/12/2012/id/43925#ixzz26JYQZAuQ"]Minyanville[/URL], "This is a big hole in [URL="http://www.minyanville.com/business-news/editors-pick/articles/google-goog-amazon-amzn-google-shopping/9/12/2012/id/43925#"]Google’s[/URL] dominance of the online search industry. Consumers increasingly are going straight to Amazon to search for products, on the pretty fair assumption that, whatever they want, Amazon’s got it."
For more on this, see [URL="http://mashable.com/2012/09/11/google-shopping-to-switch-to-paid-model-in-october/"]Mashable[/URL] and [URL="http://googlecommerce.blogspot.com/2012/05/building-better-shopping-experience.html"]The Official Google Commerce Blog[/URL].