Google Shopping has changed the way it operates – products will no longer be listed unless they have been paid for. What do retailers need to consider?

Last week Google Shopping changed the way it operates in several countries, including the UK, moving to a commercial model.

This change has significant implications for retailers and their customers. For the retailer, all of the free traffic currently received through Google Shopping will stop, and only continue if their product data feed is linked to a Google AdWords account. Retailers will need to purchase product listing ads, which are search ads that include more information than normal, such as a product image, price, and the merchant’s name. The changes will be in place by the end of June 2013.

For shoppers, the new initiative aims to improve the shopping experience, product search, ability to compare different products, their features and prices, and then connect directly with the retailer to make their purchase.

The percentage of retail sales that are made through online search continues to grow exponentially. While many retailers may focus on the cost of paid for listings, the opportunities for boosting sales are huge as Google adds new features such as catalogues, offers and shortlists. 

So what do retailers need to consider?

Google is offering a £75 credit for all new accounts set up in AdWords and a 10% monthly credit until the end of June, if retailers set up and launch before April 15th. So even if they aren’t sure about paying for Google Shopping listings, it can be tried at a discounted rate.

Retailers will need to actively manage their feed, which means automating processes to ensure they are regenerated frequently to keep shopping listings up to date. Retailers should also pay special attention to Google’s policies around messaging, shipping and acceptable products because in a worst case scenario, an account could be suspended.

To optimize product feed, it’s important to pay attention to product titles, product descriptions, the product landing page, the image link and its Google category.  This will improve relevance, which is the main factor in deciding how much you pay to appear on Google.

Of course, with all this, it’s imperative to track metrics such as impressions, clicks, cost, sales and revenue - the correct tracking will enable retailers to gain the desired level of data and insight.

With a whole host of data and information at their disposal, retailers should test different aspects of their product ads and feed, and refine using the results. There are a number of variables to test within product listings ads, such as different landing pages. Retailers can also test different data within their product feed such as product title, description and Image.

So by taking these few steps, retailers can continue competing for share of voice on Google Shopping and take advantage of the benefits the changes offer.

  • Hedley Aylott is chief executive of online retail consultancy Summit