Google Shopping - what is it and how does it work?
E-commerce
1 March 2023
For an entrepreneur in sales, a key task will be to ensure the visibility of the product range. Even the cheapest and best quality merchandise will not reach as many customers as it could if the person in charge of marketing in the company does not take care of proper promotion. One of the best initial steps is to use an e-commerce platform owned by one of the biggest technology giants. How does Google Shopping work and what are the advantages and disadvantages of this service?
Co to jest Google Shopping?
Google Shopping (Google Shopping) is an e-commerce platform owned by Google that allows users to search and compare products offered by different online shops. It makes it easy for consumers to find their preferred products, compare their prices and then purchase directly from the supplier's website.
How does Google Shopping work? This service uses advanced search algorithms and automated bidding strategies to tailor the listings displayed to the needs of interested parties. It also allows sellers to advertise their product range using Google Ads, increasing their visibility and the chance of a successful sale.
What is Google Ads?
Google Ads (formerly Google AdWords) is one of the most popular marketing tools on the internet. Google Ads are displayed as sponsored links at the top and bottom of Google search results and on other websites participating in the company's advertising programme.
Advertisers are able to personalise Google Ads promotion guidelines, in which they specify, among other things:
- target groups;
- Keywords;
- Budget;
- geographical and demographic criteria.
Ads on Google Ads work on an auction basis, where advertisers bid on how much they are willing to pay per click of their ad (CPC - Cost Per Click) or for it to be displayed a thousand times (CPM - Cost Per Mille). 
Google Shopping and Merchant Centre - how do I set them up?
How do I add Google Shopping as a means of actively promoting my business? To do this, merchants need to set up their Merchant Center account and integrate it with their Google Ads account. This is not a difficult task, but it is time-consuming and requires following the terms and conditions.
Opening an account at the Merchant Center
The first step is to set up an account at the Merchant Centre and provide basic information, among other things:
- shop names;
- country of operation of the business;
- the language in which product information is presented.
User verification will then be required. The quickest method is to add HTML code to the activity's website.
Sending product information
The next task will be to upload the product information to the Merchant Center. These must comply with Google's requirements, i.e. include:
- name;
- description;
- photo;
- price;
- goods availability.
Content should be sent in XML or CSV file format or integrated into the webshop system via an API (Application Programming Interface).
Setting up your Google Ads account
In order to use Google Shopping, it is necessary to set up an account in Google Ads and then connect it to the Merchant Centre. After successful registration, the requirements include the creation of an advertising campaign and the selection of preferred settings, concerning product groups, auctions and the display of marketing content itself.
Installation of a remarketing tag
The remarketing tag makes it possible to use dynamic remarketing. Google Shopping adverts will then be displayed to users who have already visited the webshop page.
Launching the campaign
Once you have set up your Merchant Center and Google Ads accounts, there is nothing left to do but launch the advertising campaign you have created in advance. Its effectiveness should be monitored regularly and, if problems arise, it should be updated and the market's reaction to the changes made (to improve conversion and monetisation) examined. 
How does Google Shopping work?
The operation of Google Shopping is based on the use of the Merchant Centre and Google Ads, which allows retailers to present their products in graphical and textual form in Google search results.
The presence of advertising in Google Shopping means that when a consumer types a specific query into the search engine, such as: "InPost foil pack", the exact links in the form of product images to shops operating within Google Ads will be displayed at the very top of the screen, only followed by standard links leading to websites.
Why use Google Shopping?
One of the most important benefits of using Google's e-commerce platform is the ability to monitor competition on Google Shopping. This enables sellers to adapt their offers to the ever-changing market conditions and make better business decisions. For example, if they see that the most popular company operating in the same sector has organised discounts on selected products, they may be tempted to do the same.
Price tracking on Google Shopping is not the only plus. Sellers will also appreciate that they can precisely target their offers based on a number of criteria, such as:
- location;
- target group;
- user preferences.
This causes marketing campaigns to start producing real results, rather than turning out to be just a waste of money during a failed investment.
In other words, if an entrepreneur wants to achieve great success in the industry, he or she will eventually be forced to use all possible means and functions to gain maximum publicity, including ensuring that his or her articles are correctly positioned in the price comparison sites available on the web.
Is there a charge for using Google Shopping?
Yes, there is a charge for using Google Shopping. The costs depend on a number of factors. These include:
- competition in the market;
- the level of click-through rates on adverts;
- selected keywords;
- the way campaigns are targeted.
Under the pay-per-click (CPC) billing model, the costs of advertising on Google Shopping are incurred each time an internet user is redirected to a retailer's website via an advert.
Click-through rates vary according to industry, products and geography, as well as the day and time the ads are displayed. The final cost of advertising depends on the individual campaign settings and the budget the retailer wishes to allocate to promote its products.
However, it is worth noting that the use of Google Shopping can bring many benefits in the form of increased visibility and sales, which can offset the cost of advertising. For effectively run advertising campaigns on Google Shopping, the return on investment (ROI, Return On Investment) is very high. Generating traffic pays off.
Does it pay to use Google Shopping?
Yes, it pays to use Google Shopping and even in a situation where it does not directly increase earnings by increasing sales of the product displayed. This is because you also have to consider the image benefits, which are able to pay off in the future.
In theory, when a customer becomes accustomed to a particular website, especially if it is designed in a clear and intuitive way for the user, the consumer becomes loyal. Then, even in a situation where the competition has lower prices, there is a chance that the interested party will choose the trusted shop again, because he or she has not had the opportunity to find out about the lower price or does not want to take the risk (due to, for example, inferior service, longer waiting time for a package or incomprehensible terms and conditions for transactions and returns).
Google Shopping strategies - how do you plan and execute them?
The first task for a retailer wishing to plan a strategy using Google Shopping is to choose the right product. For example, if a trader is selling perfumes, he or she should choose fragrances that have been enduringly popular with the public for many years. It is also worth selecting products according to the season, allowing for the possibility of, for example, discounting summer fragrances during the ongoing autumn or winter.
The second is to prepare appropriate descriptions. Customers need to be able to get all possible information about the product. Completing this task is crucial because it helps to gain the consumer's loyalty. They will check the content on the website in the future even if the positioning of the website deteriorates.
He should then define the target group. Using the perfume example further: is the fragrance suitable for young men? So it will be a good idea to make sure that the message about the promotion reaches them and not middle-aged women. Unless the strategy is to launch around Children's Day - in which case mothers are looking for gift ideas for their sons.
The final task is to track and optimise campaigns on an ongoing basis. There are definitely more reasons to buy something, such as Children's Day. The retailer should monitor trends in the market and then analyse them and take further action based on them.
Multi-channel sales in Google Shopping
Multi-channel selling with Google Shopping is about promoting your products on different platforms, such as Google Shopping, Amazon or Allegro, while managing all your sales in one place. Why? The reason is simple: for the convenience of customers.
Assuming a consumer uses a service such as Allegro Pay, it may be that they would normally choose not to buy a product, but in the situation where they notice that an item is listed on Allegro, they decide to place an order.
Google Shopping integrations with other sales channels
Google Shopping facilitates integrations with other sales channels. These include:
- Amazon;
- eBay;
- Shopify;
- WooCommerce;
- Allegro.
Google Shopping is a useful e-commerce platform for entrepreneurs to use when the aim of the business is to increase sales of the product range on offer.
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