Google Takes Aim at Amazon. Again. - The New York Times
On Thursday, Google announced that it would take steps to bring more sellers and products onto its shopping site by waiving sales commissions and allowing retailers to use popular third-party payment and order management services like Shopify instead of the company’s own systems. Currently, commissions on Google Shopping range from a 5 percent to 15 percent cut depending on the products.
Google is usually the starting point for finding information on the internet, but that is often not the case when consumers are searching for a product to buy. More consumers in the United States are turning first to Amazon to find products that they plan to purchase. This has allowed Amazon to build a rapidly growing advertising business, which is a threat to Google’s main financial engine.
Google announced in April that it would allow anyone to list products for free on its shopping site, reversing its previous policy of requiring sellers to buy an ad for products to appear. The company also announced that those free listings would appear on its search results. By eliminating the cost of listing and selling products, Google aims to make it more appealing for retailers to put products in front of the search engine’s enormous user base.
In an interview, Mr. Ready said most retailers were already lagging behind in e-commerce before the pandemic hit. And as more consumers moved to shop online in recent months, the gap has widened with much of the growth in online sales swallowed by a handful of players.