How Google Shopping Works in 2020

By Melissa |  Apr 24, 2020 (5 min read)

Ecommerce | Marketing | PPC

You might have noticed that whenever you search for a product on Google, you get a different type of result. Instead of only a list of websites, you get a list of products that can be purchased directly.

This is the Google Shopping function inside Google – a direct link to retailers and resellers for products online. Similar to sites like Amazon, eBay, Etsy, and Craigslist, Google Shopping offers businesses a way to reach more consumers than only through their websites.

Rather than take a percentage of the sale or a fee, Google Shopping offers businesses a chance to get their products listed for free. This announcement means that if you run a business that sells shippable products, you can benefit a lot from listing them on Google Shopping.

Of course, paid listings on Google Shopping will continue to appear in ad slots at the top of each search results. But at the very least, you are listed on the Google Shopping index, just as you are with organic search results.

What is Google Shopping?

Google itself labels Google Shopping as a ‘product discovery experience.’ 

The service does more than peddle different sellers on Google. It offers researchers to chance to learn more about purchases, find information about similar products, compare features and prices, and connect directly with businesses to make their purchase.


Search results in Google appear differently whenever a person searches for a specific product.


How Does Google Shopping Work?

Google Shopping allows searchers to view specific product information directly from businesses that sell those items. To ensure the information is accurate, the search results are updated regularly basis by the merchants themselves.

Online retailers submit their feeds with product information to Google Shopping. Because this product information comes directly from the merchant, it means Google can show the most current prices, special offers, and product availability to searchers.

Ranking on Google Shopping is based on a combination of factors. According to Moz, these factors include:

  • Information in the Product Data Feed
  • The number of advertiser bids 
  • Search relevance based on the popularity of search terms

To get started, you’ll need a Google Account (like a Gmail account) to sign up for the Google Merchant Center. 

First, go to merchants.google.com and sign in with your Google Account. Google then provides a step-by-step guide for getting started with Google Shopping. 

If you are considering advertising on Google Shopping, the process allows you to customize your ads, set budgets and pricing, and easily measure the success of your ads with reporting tools.

How Much Does Google Shopping Cost?

The good news is that Google does not have a minimum bid or a minimum cost for Google Shopping. The recent decision to charge nothing for shopping listings means you can use the service for free. 

If you want to have ads on your products, you can choose a cost per click as low as $0.01, with no minimum daily budget. This means you have a lot of flexibility for how much you spend on Google Shopping.

Google Shopping can cost you $1 a day or more than $100 a day, depending on how much visibility you want your products to have. Moz conducted a Google Shopping study that showed merchant costs on Google Shopping averaged at $11.30 in ad spend for every $100.00 in sales revenue.

Keep Product Information Updated 

To customize Google Shopping results, searchers can sort or filter by things like price, product category, and brand. 

This data is essential to add to any product listings a business has. Google encourages advertisers to provide details about their products and update their product listings regularly.

If you are considering adding Google Shopping ads, then make sure to keep your data updated.

Encourage Customers Reviews

To help users research products, Google gathers product reviews through the Google Customer Reviews program. These reviews are entirely voluntary, and Google doesn’t compensate reviewers for their feedback.

An automated system checks the reviews before they show up on Google Shopping. This step helps to remove spammy content such as reviews with the same information posted multiple times or from multiple accounts.

Honest customer reviews will help people to want to buy from your listing and build brand trust and recognition beyond the initial sale.

An Entry Point for New Customers

You can think of Google Shopping as a way to attract new attention to your business, especially for customers who are in the research phase of the buying cycle. While not every listing may make sales immediately, it puts your brand and your online storefront and center and helps customers to remember you when they are purchasing in the future.

If you are ready to launch your ecommerce brand, then we are here to help. Brandastic is an award-winning ecommerce web development agency. We are experienced in helping companies to design, build, and launch their website. Reach out to us today to see how we can support your ecommerce business.

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