What impact will Google's Buy Button have on retailers and e-commerce players?
/Google recently announced that it would allow a "Buy Button" to appear in its search results. Initially, this would happen in mobile search results. Makes sense, since we all know that in some parts of the world, search and online shopping behavior is increasingly on mobile. This is just the start of the launch, so chances are that it will be rolled out further to desktop search pages in the foreseeable future.
The noble goal is to reduce the number of steps for consumers. By eliminating steps and thus allowing consumers to pursue further online transaction activities directly on Google pages and enter their data, essential data is kept away from retailers.
The ability to act on that point in the customer journey by the retailer itself, via cross and upsell techniques and suggesting product recommendations, is also being snuffed out. Google does state that on those pages it will give the opportunity to the retailer, but how this fits into the online ads selling techniques is not yet known. As well as whether Google wants to generate additional revenue on this.
One of Google's goals is to further position itself against Amazon and eBay. Macy's is said to be in advanced talks with Google to become part of this launch.
Consumers then only have to store their payment information in 1 central place, Google, to shop. Google does pass the paid amount on to the retailer without taking a commission or the like on this, but there is no word on how long the funds stay with Google.
Google today sees online selling ad revenue being lost as consumers start shopping directly on apps from different retailers where they also no longer have to enter all the payment information. So it is interesting for Google to drop in as early as possible in the customer journey and also own this payment and shopping behavior data.
No doubt this will also have an impact on Google Product Listing ads.
It will help eCommerce companies though in accelerating the rollout of their mobile eCommerce activities by having a mobile eCommerce channel through Google. Especially the latecomers and smaller players in the market can take advantage of this, but I am still curious how the big eCommerce players here in Europe look at this evolution.
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