In an attempt to compete with the e-commerce giants, Google will be releasing a ‘Buy’ button into its search results in the near future.

A report by The Wall Street Journal said that Google was planning to rival the likes of Amazon and eBay by introducing the buttons in its “shop on Google” section. The buttons will also appear in Google’s sponsored adverts.


The move comes as a result of the increased usage of mobile devices globally. Google executive, Jerry Dischler said that searches on mobile devices now outnumber those on personal computers in 10 countries. This has lead to a new way of thinking for Google and it’s mobile search.

Currently, users who shop on Google are taken to the retailer’s product page via a link. With the update, a new Google product page will be opened for customers to customise and complete their transactions.

The new update could improve mobile e-commerce for both users and retailers in the following ways:

Create a smoother buying process

Google has said that the Google shop will reduce the friction of buying process and lead to a greater chance of a purchase being made.

Users will only be required to input their payments details one time, from there Google will store the details and allow for automatic payment on future purchases.

Justify mobile ad pricing

Google is facing stiff competition from retailer’s mobiles apps, which users find friendlier when making a purchase. As a result, Google has seen its cost per click fall 7 percent year-over-year and is looking for ways to reverse this.

Unlike its competitors Google will not take any commission from the sales generated. The ‘Buy’ buttons will just reinforce its paid advertisement structure, giving retailers more incentive to use its pay-per-click (PPC) payment structure.

Improve mobile search results

With the flow of the new transactional data, Google will be able to further improve its search engine, offering improved personalised search results.

Adverts will be more targeted, which is a positive for both consumers and retailers. Users will view adverts which are suited for them, while retailers should experience higher click through rates because of this.

Increase e-commerce competition

More competition leads to a better deal for consumers. E-commerce sites like Amazon and Alibaba will no doubt have their own strategies on how to counter Google’s further move into their territory. These battles for e-commerce territory, can only add improvements to the end users shopping experience.

Conclusion

Retailers still have their concerns

Although Google’s new ‘Buy’ buttons appear to have some benefits for retailers, they still have some concerns.

Google will not be sending the retailers any payment details. Once a transaction has been completed, Google will pass on the payment to the retailer as well as other information such as contact details.

When a user goes directly to the retailer after purchasing off Google, the user will have to go through the whole purchasing process again, since the retailer will not be able to provide a quick buy method. This could lead to disgruntled customers who want a fast and smooth purchasing process.

Another concern is that retailers may lose the brand loyalty and awareness of customers purchasing through Google. Google has assured retailers that shoppers will still belong to the retailer and not Google.