Google is looking to generate revenue from product searches

Google is looking to generate revenue from product searches


Shopping Actions expands upon the company's existing Google Express e-commerce portal for buying products from leading retailers.

On Google search, the Google Express shopping service, and Google Assistant on home devices and mobile, shoppers can now save their payment credentials and make purchases from retailers with instant checkout.

Both items will be added to the same cart and can be purchased together through a "Google-hosted checkout flow", the company says. Google gets a part of the profit from each, which is different from its typical ad revenue model.

The company said over the past two years, mobile searches for "where to buy" jumped over 85 percent, and 44 percent of people who use their voice-activated speaker weekly use it at least once a week to order items they need like groceries and household supplies.

Google Shopping Actions will help the retailers to better pitch their products whenever a related query is put on Google search and other portals. It uses what the company calls a universal shopping cart that recognizes the consumer - whether they make the purchase on a mobile, a desktop or a Google Home device. "We have taken a fundamentally different approach from the likes of Amazon because we see ourselves as an enabler of retail.We see ourselves as part of a solution for retailers to be able to drive better transactions", Google's president for retail and shopping Daniel Alegre told Reuters.

Google is working with a range of top retailers on the new effort, including Target, Walmart, Ulta Beauty, Costco, and Home Depot. Google stated, "Leverage our deep investments in machine learning, AI and natural language processing to offer your customers a hands-free, voice-driven shopping experience".

According to early results, the program has boosted the average size of customer's shopping baskets at the partnering retailers by 30%. Retailers will only pay Google when sales are made.

Analysts said that the program will help retailers fight back against the dominance of Amazon.

Over the past six months, Target said the number of items in shoppers' Google Express baskets have increased by almost 20 percent, on average, as a result of its tie-up with the internet company. And, it must be noted that Google's latest program impacts the search results. For instance, if Sarah links her loyalty card to purchases at Ultra Beauty and she makes monthly purchases on eye makeup remover, Google will serve up the same brand of eye makeup remover during her searches around the same time each month.

  • Terrell Bush