• KramerEdward77

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  • http://www.facebook.com/people/Alen-Jessy/100003854217807 Alen Jessy

     
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  • http://www.webstatsart.com/ Webstats Art

    That is what they have been doing already on google search anyway

  • http://www.discountcleaningproducts.com/ Mike Kawula

    This will unfortunately result in consumers having a price increase as the cost will go up to attract new customers! Great Job in looking out for the Consumer :(

  • http://forge-of-the-ancients.com/ David Brayton

    As a small business owner this is a big kick in the head.  This business was relying on Google Product Search for its traffic as CPC would not be cost effective for the amount of traffic we get compared to sales.  I’m wondering how their CPA model will work, as they stated that a select few will be able to use it.  Not sure how the small business will be able to compete with the mega corps.

  • Troy Olson

    Well, here is your answer: 
    The following products are not allowed on Google Shopping:Vehicles
    Guns, ammunition and knives
    Tobacco and cigarettes
    Traffic devices (learn more)
    Products related to casino and gambling
    Products or digital goods that require additional software installation in order to be purchased.
    Products bundled with service plans. (Note: The only products that are allowed to be submitted with a service plan are mobile devices.)This is really unfortunate considering how many consumers click on these products in the current shopping results.

  • Preston Wily

    Why does everybody think this will hurt small businesses? Have you seen Google Products results lately? They are full of Amazon and Amazon JR’s with razor thin margins and a ton of reviews (which seems to be an important factor in rankings).

    If anything this gives small businesses, who tend to have higher fixed costs and hence have to charge higher prices, an opportunity to buy their way to the top. Amazon is not going to hire somebody to exploit a niche that produces $200k/yr in sales, but a small business owner might be able to spend a lot of time testing bids, prices, etc. for that amount of money.

    To be clear, this change is about Google’s shareholders. It will probably lead to higher prices for consumers, which sucks, but it isn’t necessarily bad for ecommerce companies. It just means you have to adapt to the changes and try to stay a step ahead of your competition.

  • http://www.DaftGadgets.com Jason Scott

    What a lot of people forget is that big companies spend tons of money on advertising not even knowning if it works.  They will lose money on clicks thinking (we’re losing money on clicks, but that click gives brand awareness)  Small companies cannot afford to buy non converting traffic because they don’t make money from buying and selling the time of employees, they only make money from buying and selling products or services.  

    I feel a little hurt by google, but for some reason I still have some faith (or maybe its some desperate form of hope? lol) that they will do something like make it a very small fee for inclusion like $35 per month. 

    With half the merchants accepting the fee it still gives over 1 million dollars a year to manually review each entry. at $100,000 per year for new employees thats 10 people for manual reviews.  At 2 sites reviewed per day that can go over every merchant once per year.  at 8 site reviews per day (assuming it takes an hour to review a site manually) they can do every merchant quarterly.  These seem to be conservative numbers from my perspective, but maybe I’m off.

    They could do all this and still make more money.  If the small businesses can continue to compete, they can then increase their profits by raising the price to $40, etc.

  • http://www.DaftGadgets.com Jason Scott

    Wikipedia is a great resource and it seems to do okay cleaning up junk?  free doesn’t mean bad, nor does orderly mean good.  At least not to me.

  • eTailAlliance

    There has been a proliferation of poor quality listings with misleading prices, it has made Google shopping less useful for the user and whilst Google is a public company and needs to keep making their shareholders fat, I still believe they have one firm eye on the best user experience.

    My concern for independent eCommerce operators will be whether they will be able to compete on the new platform. Plus more price comparison commoditises the marketplace further, with a Google shopping platform, the art of browsing small etailers may start to disappear, with the added value specialists bring getting wiped out by a lowest price, wins mentality.

  • http://twitter.com/flooracle Jim Birch

    Before today in Google Web Search, my best selling product has 6 Paid results, and 10 Organic results (including 2 video results from youtube).  I am on page 2 that has another 5 paid placements.

    Today, with the new Shopping box in the right hand column, they are showing me 6 products, That would be a total of 11 paid results, and 10 organic listings, over 50% of the page.

  • http://profile.yahoo.com/LU4GUCLB72OXGLBHHTWUNXGTTA HungT

    Definitely. 

    I agree with Jonathan.  It will increase the price of products sold through the merchants.

    It will also affect how much consumers pay in the end.

    This will in turn hurt the consumers.

    Everything is costing more and more.

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  • http://www.facebook.com/profile.php?id=100000735017863 David Durel

    Sign the petition asking Google not to do this, here: http://www.change.org/petitions/merchant-center-keep-google-merchant-center-part-of-organic-search#

    This change will greatly hurt the economy by negatively impacting small businesses. Further, it will make Google’s product results biased and useless. People use Google Product Search to get the best deals on items. This will force an increase in end user pricing, for any merchant who even dares to compete with the big players. Inevitably, the small businesses which drive the US economy will be squeezed out by their inability to financially compete with the heavy hitters. This change is bad for Google, bad for consumers, bad for small businesses and bad for the US economy.

  • E_Retailer1000

    This is far worse then any one knows becuase they are also restricting the type of products that they will advertise.  No longer will sportsmen be able to shop for ammunition or any gun related item.  They have also banned advertising of all knives and a long list of other item.  This is a lot more then just greed.  They are trying to take control of what they think you should buy or not buy.  We all should be very worried about that.  Where will it stop.  This action will just open the door for some other company to take thier place.

  • http://twitter.com/openmikecafe Mike Stephens

    Thank you for your article. I own a small video store and most of our sales are online and most of those as a result of our google product feed. Because we now have to also do the google adwords thing now in order to keep our products listed, we’ve open an account there as well. Trouble is, for as much as we pay to keep this account going ($200 per month), we’re getting under ten clicks a day. That simply won’t cut it for us. Who knows what will happen when the big change comes this fall. Right now we have pretty good placement in google shopping. I don’t know what we’ll have a few months from now. My guess is that our listings will be buried. I’m too old to find another way to make a living. And I certainly won’t be able to keep on my few employees. So of course I’ve been stressing, trying to figure out how to get more clicks, reading as much I can about these changes, trying to figure out what to do. I’d gladly give Google their pound of flesh to the tune of $200 a month if they’d just leave things the way they are. But this whole pay-per-click idea – a lot of small business owners like myself are going to be hurt by it. I always thought Google had the right idea. But they’ve certainly missed the mark this time… Thanks for listening.

  • http://twitter.com/CPC_Rick Rick Backus

    Wow that was really depressing stuff Mike :(

    My company CPC Strategy helps retailers with data feeds and Google Shopping is one of the main feeds we send out. We don’t know exactly what to expect when Google flips the switch to paid traffic (starting on July 1st) but we are confident in our ability to quickly learn from our 130+ clients.  

    We normally charge $1-2k per month but we would be willing to help you out for free. If you’re interested you can email me – rick at cpcstrategy dot com (sorry you can’t link to direct email addresses in the comments) and I’ll do everything I can to keep your business running. 

    We also created this ebook to help smaller retailers out with the transition - http://ebook.cpcstrategy.com/readyforgoogleshopping.pdf.

  • http://twitter.com/openmikecafe Mike Stephens

    Thank you for your article. I own a small video store and most of our sales are online and most of those as a result of our google product feed. Because we have to also do the google adwords thing now in order to keep our products listed, we’ve open an account there as well. Trouble is, for as much as we pay to keep this account going ($200 per month), we’re getting under ten clicks a day. That simply won’t cut it for us. Who knows what will happen when the big change comes this fall. Right now we have pretty good placement in google shopping. I don’t know what we’ll have a few months from now. My guess is that our listings will be buried. I’m too old to find another way to make a living. And I certainly won’t be able to keep on my few employees. So of course I’ve been stressing, trying to figure out how to get more clicks, reading as much I can about these changes, trying to figure out what to do. I’d gladly give Google their pound of flesh to the tune of $200 a month if they’d just leave things the way they are. But this whole pay-per-click idea – a lot of small business owners like myself are going to be hurt by it. I always thought Google had the right idea. But they’ve certainly missed the mark this time… Thanks for listening.

  • Jon Hawfield

    Google just made the absurd Ebay (7%) and Amazon (8%) fees seem reasonable. My company will no longer participate with Google…nor use ANY of it’s services as we expect they will all become fee-based.

    I guess Google never got the memo of what happened to MSN on October 14th, 2004 when it began charging $20 for some of it’s services. MSN who?

  • http://profile.yahoo.com/5VWZC33R6R2HORAP3TMVACMDNI C

    1. Even if merchants pay for this what prevents them from having low quality data — like the example of showing a listing fo $19.95 but when clicking through it is really $24.95?  I really don’t get how this model will “force” retailers to provide higher quality data.  In fact it could do the opposite:  “Hey Google, we spent $500,000 last quarter on AdWords — so you are going to shut us down because we made a few mistakes in our listings?”  Yeah, right.

    2. I wouldn’t mind paying for conversions but paying for clicks is not going to work, especially on low margin items.  I tried AdWords for a while but the analytics showed me that 90% of the clicks I was paying for were coming from two “click farm” websites that were nothing more than collections of SEO content designed to generate AdSense revenue for the owner.

    The only good thing about this is that it opens up the door for someone else to come up with a really good free product listing service.  It would be very easy to create a site that mimics the legacy version of Google Shopping.  Run a couple of traditional AdSense units in the margins and they would make decent revenue.

  • http://www.jlist.com Peter Payne

    Try selling adult products, like I do. It’s going be interesting, definitely the beginning of a “post-Google” era.

  • http://www.theppcindex.co.uk/ Paul Maddock

    If a company is in a position to offer a better and cheaper product, they shouldn’t have a problem making the investment to introduce that on to Google.

    Yes it’s not nice that Google are going to charge for something that was free, but if it cleans up the space and ultimately makes it better for the searcher then what’s the harm?

  • Malky S

    After reading this detailed post, I still am unsure as to what the shopping page look like post transition? will it still have the “compare prices” feature aggregating all merchants who sell the same product, only now they will all be paying and ranked in order of bid? (http://www.google.com/products/catalog….)

  • http://profile.yahoo.com/ZOGJQDSMMY2VOQF2RLKO6QZG5I cf8

    Well, using Google’s own “define” function to ask it what is meant by “paid inclusion” pretty much sums up that paid inclusion is what it is. Not some “differently labeled” crap.

  • B120703

    I agree with David, Jonathan and Hung.  Google Shopping will go the way of Yahoo Shopping, that at one time was the King of eCommerce.  With time, small merchants will go away (probably to Amazon) and Google will lose variety and price competition, pushing Amazon sales even more.  We are a small merchant and Google Shopping traffic currently lets us sell “long tail” products…very few products sell more than once.  Impossible to make ends meet if we have to pay for clicks.

  • Louis Rossmann

     I disagree. Most of the time prices being wrong(up or down) is because of how god damn slow Magento and Zencart are syncing products with Google shopping. When you finally get it working they come out with some update that makes your plugin outdated. You install the new version only to see it has bugs. It is not bait and switch on many merchants’ part, it is the asinine hoops merchants must jump through to update listings. If you have 3000+ listings it will time out several times during the syncing process which can often take hours to do.

    Retailers like Amazon and eBay use Google shopping feeds and Google Adwords. They have more money then small business owners, even though the small business owner may sometimes have a more relevant product. Who do you think will be able to afford more pay per click ads? This is one step towards separating the rich from the poor on the internet. Good job, Google.

  • Louis Rossmann

     The harm is that products used to be listed on Google Shopping by relevance. Now they will be listed based on who pays the most.

  • mmartin2001

    I am starting to think that a brick and mortar store would require less overhead.  I think if the internet gods continue along this path, you will see a flood back to the low cost or retail space that is out there today.  If I could lock in a lease at $0.50 sq/ft/month for 10 years, I may leave the internet as a primary outlet.

  • http://www.theppcindex.co.uk/ Paul Maddock

    I believe the model is pay per inclusion. And if Google’s other models are to judge by ad rank = cpc x quality score (relevance).

  • http://www.facebook.com/people/Pancho-Demma/100002577660467 Pancho Demma

    More and more Google is becoming greedy. Sellers should just rebel against Google because if everyone takes a stand they will remove this new policy. Every 5 minutes they are changing things and making the merchants lives a living hell! Every single change they have made has had an impact on my business. And now with the shipping rates they have almost destoryed my business. Now with this BS pay per click, they will illimiate small to medium business. Luckily Im planning on going into a new line of business if this keeps up.

  • http://www.facebook.com/people/Pancho-Demma/100002577660467 Pancho Demma

    Nate sounds like some liberal weed smoking hippy. speak english!

  • http://www.facebook.com/people/Pancho-Demma/100002577660467 Pancho Demma

    Not true at all. With every so called solution there’s always a workaround. How do you think thats going to stop anything. Something new comes up, there’s always someone or a group of people out there that will come up with something to knock that new concept out of the water.

    Hopefully, Yahoo or Bing will take advantage of what Google is doing and drive traffic away from Google. This new so called strategy will hurt Google. What makes an online business successful is making it free for their members and then charge for advertisements in terms of not us merchants but companies that really want to place advertisements. Wilth Google’s stock 600 bucks a share do you think they need th money?

  • http://www.facebook.com/people/Pancho-Demma/100002577660467 Pancho Demma

    I heard somewhere that Google employees could do whatever they felt like that was innovative and helped the company grow. Someone took over and now they act some accounting firm. No more individuals its all corporate.

  • KilledByGoogle

    I am a father of 5 and my website is my sole source of income for my family. We have been trying to get the new product listing ads to work for us, but they are costing us more than we can afford. We are spending money like crazy, but it does not provide the quality conversions we had before. Now we are paying Google to lose money on every sale. This is the beginning of the end for us. THANK YOU GOOGLE! YOU HAVE DESTROYED ME, MY COMPANY, AND MY FAMILY ALL BECAUSE OF YOUR GREED!

    It is unfair that any one company should have the power to completely destroy a company with little more that a push of a button. But that’s what Google did to us.

  • http://profile.yahoo.com/VY2Y2ZVKN55NDZQ3JEXGYO7SDI bob

     This is indeed a sad sad day!! the one American company I actually
    believed in has now lost my complete respect!!  Like it’s not hard enough for us small AMERICAN company’s to make small profits in this horrible economy, My best friend Google is now turning its back on me & all us AMERICAN small businesses! & putting another nail in our coffin!!
    WOW whats next Google you have to pay to be included in your regular search engine!! might as well screw with all of the internet & become untrusted by all!
    I am actually heartbroken & seriously want to cry!
    all I can say is shame on you Google for turning on US your fellow AMERICANS! and all internet users abroad.
    Goodbye
    best friend !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

  • Philip Balvanz

     Agreed.  I happen to be one of them.  Before this change I was getting anywhere from 3-10 clicks a day free off of product search.  I know that doesn’t sound like much but if even 1-3% buy it’s an extra few sales a month that I didn’t have to pay for.  Now based on current Adwords rates I’ve been getting I have to pay around $0.15-$0.23 a click just to push them to my site, so about $13.5-$69 extra be month.  It might not seem like much, but I do only about $2000-$4000 a month in sales.

    Did I mention that big box businesses get special privileges when it comes to googles new change?  Like they only pay if someone buys?  Seems rather unfair if you ask me.