Google Shopping

Last updated

Google Shopping
Google Shopping.svg
Type of site
Price comparison
Owner Google LLC
Created by Craig Nevill-Manning
URL shopping.google.com
CommercialYes
RegistrationOptional
LaunchedDecember 12, 2002;21 years ago (2002-12-12) (as Froogle)
[1]

Google Shopping, [2] formerly Google Product Search, Google Products and Froogle, is a Google service created by Craig Nevill-Manning which allows users to search for products on online shopping websites and compare prices between different vendors. Google announced at its Marketing Live event in May 2019 that the new Google Shopping will integrate the existing Google Express marketplace into a revamped shopping experience. [3] In the US, Google Shopping is accessible from the web and mobile apps, available on Android and iOS. Google Shopping is also available in France, accessible from the web only. [4] Like its predecessor, Google Shopping is free and requires a personal Google account in order to purchase from the platform. A colored price tag icon replaces the parachute icon from Google Express.

Contents

On the web, shoppers can either go to the Google Search homepage to enter a search query and then select the Shopping tab under the navigation bar, or go directly to the Google Shopping site to search for specific items, browse departments, and see trending items and promotional offers. The Google Shopping mobile app opens directly to the shopping homepage, where shoppers can similarly search or browse, and access their shopping lists, order history and notification settings. Currently, the product inventory available on the app is less robust than what is available on the web, since it currently reflects items shoppers can only buy directly on Google. In addition to shopping from well-known online stores, users can shop with confidence at lesser-known online stores when they choose to buy directly on Google, which includes a Google-backed guarantee. [5] The guarantee includes Google customer support, available 7 days a week, and added assistance if the order is late, if something is wrong with the shipment, and to simplify the return and refund process - regardless of the seller. When on the web, shoppers can identify products they can buy on Google by either looking for the colored cart icon within a product image, or by selecting the Buy on Google filter. Free delivery is available on qualifying orders that meet the store's minimum order amount.

Shoppers can see personalized product recommendations and promotional offers on the Google Shopping homepage depending on their Google account settings. Other features geared to help shoppers find the best prices and places to buy include the ability to track the price of a product, compare the total order cost at online or nearby stores, and access product reviews and related video content.

Over the coming year, additional shopping capabilities will be rolled-out and tied into other Google products and platforms in order to simplify a shopper's buying journey.

Originally, the service listed prices submitted by merchants, and was monetized through AdWords advertising like other Google services. However, in May 2012, Google announced that the service (which was also immediately renamed Google Shopping) would shift in late-2012 to a paid model where merchants would have to pay the company in order to list their products on the service. [2] [6]

In June 2017, Google Shopping was fined a record €2.4 billion by the EU Commission for giving its own online shopping services top priority in search results. [7]

History

Created by Craig Nevill-Manning [8] and launched in December 2002, Froogle was different from most other price comparison services in that it used Google's web crawler to index product data from the websites of vendors instead of using paid submissions. As with Google Search, Froogle was instead monetized using Google's AdWords keyword advertising platform. [9] [10]

With its re-branding as Google Product Search, the service was modified to emphasize integration with Google Search; listings from the service could now appear alongside web search results. [11]

Google prominently featured the service result in Google Search starting in January 2008 in Germany and the United Kingdom. It subsequently extended the practice to France in October 2010, Italy, the Netherlands, and Spain in May 2011, the Czech Republic in February 2013 and Austria, Belgium, Denmark, Norway, Poland and Sweden in November 2013. [7]

Change to paid listings

Alongside the announcement of an immediate re-brand to Google Shopping on May 31, 2012, Google also announced that in late 2012, it would change the service to use a "pay-to-play" model, where merchants would have to pay Google to list their products on the service, with results influenced by both relevance and the bid amounts they pay. Google justified the move by stating that it would allow the service to "deliver the best answers for people searching for products and help connect merchants with the right customers." [2] [12]

The change proved controversial; some small businesses showed concern that they would not be able to compete with larger companies that can afford a larger advertising budget. [6] Microsoft's Bing also attacked the move in an advertising campaign known as "Scroogled," which called Google out for using "deceptive advertising practices" and suggesting that users use its competing Bing Shopping service instead. [13]

Google also revealed plans to integrate Google Catalogs with Google Shopping, to give users "more ways to find ideas and inspiration as you shop and engage with your favorite brand." [14]

In June 2017, Google Shopping was fined a record €2.4 billion by the EU Commission for giving its own online shopping services top priority in search results. [7]

In March 2018, Google introduced Shopping Actions, a commission based model, where customers can shop "on the Google Assistant and Search with a universal cart, whether they're on mobile, desktop, or even a Google Home device" [15]

Initial case studies on the impact of Shopping Actions vs Google Shopping alone show positive results, with higher Average Order Value, increase in basket size, and higher revenue to merchants. [16]

Naming

Froogle BETA TM logo.gif

Google Shopping was originally known as Froogle, a pun on the term "frugal." On April 18, 2007, the product was renamed Google Product Search; the original name was dropped due to concerns surrounding internationalization, people not understanding the pun or understanding what the service was actually about, and concerns related to the company's trademark infringement lawsuit against competing website Froogles. [11] On May 31, 2012, the product was renamed to Google Shopping. [2] The URL "froogle.com" remains as a redirect to Google Shopping's website.

Antitrust fine

On June 27, 2017, the European Commissioner for Competition, Margrethe Vestager, fined Google €2.4 billion for breaching EU antitrust rules. Google was found to have abused its market dominance as a search engine by giving illegal advantages to another Google product, its own comparison shopping service. [17]

According to the European Commission, Google started giving its own Froogle significantly better treatment than rivals as early as 2008. It first began in Germany and the United Kingdom, followed by France, Italy, the Netherlands, Spain, then the Czech Republic and finally Austria, Belgium, Denmark, Norway, Poland and Sweden. A total 418 million citizens of the European Economic Area are claimed to have been deprived of the full benefits of competition, genuine choice and innovation. [17]

In 2021, the General Court upheld the fine [18] [19] and an appeal is pending As of 2023. [20]

Countries

Google Shopping is currently available in 121 countries and territories: [21]

See also

Related Research Articles

Affiliate marketing is a marketing arrangement in which affiliates receive a commission for each visit, signup or sale they generate for a merchant. This arrangement allows businesses to outsource part of the sales process. It is a form of performance-based marketing where the commission acts as an incentive for the affiliate; this commission is usually a percentage of the price of the product being sold, but can also be a flat rate per referral.

DoubleClick Inc. was an American advertisement company that developed and provided Internet ad serving services from 1995 until its acquisition by Google in March 2008. DoubleClick offered technology products and services that were sold primarily to advertising agencies and mass media, serving businesses like Microsoft, General Motors, Coca-Cola, Motorola, L'Oréal, Palm, Inc., Apple Inc., Visa Inc., Nike, Inc., and Carlsberg Group. The company's main product line was known as DART, which was intended to increase the purchasing efficiency of advertisers and minimize unsold inventory for publishers.

Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher when the ad is clicked.

<span class="mw-page-title-main">Google</span> American multinational technology company

Google LLC is an American multinational corporation and technology company focusing on online advertising, search engine technology, cloud computing, computer software, quantum computing, e-commerce, consumer electronics, and artificial intelligence (AI). It has been referred to as "the most powerful company in the world" and as one of the world's most valuable brands due to its market dominance, data collection, and technological advantages in the field of AI. Google's parent company Alphabet Inc. is one of the five Big Tech companies, alongside Amazon, Apple, Meta, and Microsoft.

<span class="mw-page-title-main">Online shopping</span> Form of electronic commerce

Online shopping is a form of electronic commerce which allows consumers to directly buy goods or services from a seller over the Internet using a web browser or a mobile app. Consumers find a product of interest by visiting the website of the retailer directly or by searching among alternative vendors using a shopping search engine, which displays the same product's availability and pricing at different e-retailers. As of 2020, customers can shop online using a range of different computers and devices, including desktop computers, laptops, tablet computers and smartphones.

Search engine marketing (SEM) is a form of Internet marketing that involves the promotion of websites by increasing their visibility in search engine results pages (SERPs) primarily through paid advertising. SEM may incorporate search engine optimization (SEO), which adjusts or rewrites website content and site architecture to achieve a higher ranking in search engine results pages to enhance pay per click (PPC) listings and increase the Call to action (CTA) on the website.

A product feed or product data feed is a file made up of a list of products and attributes of those products organized so that each product can be displayed, advertised or compared in a unique way. A product feed typically contains a product image, title, product identifier, marketing copy, and product attributes. But, can also contain links to rich media assets such as videos, 3D animations, brochures, product stories, product relations, and reviews, as in the case of Open Icecat, the multilingual open content catalogue.

A comparison shopping website, sometimes called a price comparison website, price analysis tool, comparison shopping agent, shopbot, aggregator or comparison shopping engine, is a vertical search engine that shoppers use to filter and compare products based on price, features, reviews and other criteria. Most comparison shopping sites aggregate product listings from many different retailers but do not directly sell products themselves, instead earning money from affiliate marketing agreements. In the United Kingdom, these services made between £780m and £950m in revenue in 2005. Hence, E-commerce accounted for an 18.2 percent share of total business turnover in the United Kingdom in 2012. Online sales already account for 13% of the total UK economy, and its expected to increase to 15% by 2017. There is a huge contribution of comparison shopping websites in the expansion of the current E-commerce industry.

Criticism of Google includes concern for tax avoidance, misuse and manipulation of search results, its use of others' intellectual property, concerns that its compilation of data may violate people's privacy and collaboration with the US military on Google Earth to spy on users, censorship of search results and content, and the energy consumption of its servers as well as concerns over traditional business issues such as monopoly, restraint of trade, antitrust, patent infringement, indexing and presenting false information and propaganda in search results, and being an "Ideological Echo Chamber".

An online shopping directory is a "Yellow Pages-Style" web directory that specializes in ecommerce sites. Inspired by the organizational structure used in traditional shopping mall directories, online shopping directories organize ecommerce sites by their category and subcategory of goods sold. Without the constraints related to shopping at a physical mall, an online shopping directory serves to aggregate all ecommerce sites in one centralized location in order to help a user decide where to shop online.

<span class="mw-page-title-main">Seznam.cz</span> Czech internet portal and search engine

Seznam.cz is a web portal and search engine in the Czech Republic. Founded in 1996 by Ivo Lukačovič in Prague as the first web portal in the Czech Republic. Seznam started with a search engine and an internet version of yellow pages. Today, Seznam runs almost 30 different web services and associated brands. Seznam had more than 6 million real users per month at the end of 2014. Among the most popular services, according to NetMonitor, are its homepage seznam.cz, email.cz, search.seznam.cz and its yellow pages firmy.cz.

Like.com was a price comparison service website that billed itself as a "visual search engine for products".

<span class="mw-page-title-main">Google Catalogs</span> Shopping application for tablet computers

Google Catalogs was a shopping application for tablet computers, which was produced by Google in August 2011. Google Catalogs delivered virtual catalogs to users from merchants like Nordstrom, L.L. Bean, Macy's, Pottery Barn, and many more. Merchants were added through a process by which they submitted a form with information and a sample of their catalog, which was then reviewed by Google's editorial team. The application was noted as a "Greener Way to Shop", as the digitization of catalogs substituted for paper versions.

Google's changes to its privacy policy on March 16, 2012, enabled the company to share data across a wide variety of services. These embedded services include millions of third-party websites that use AdSense and Analytics. The policy was widely criticized for creating an environment that discourages Internet innovation by making Internet users more fearful and wary of what they do online.

Since 2010, the European Union has investigated several antitrust complaints against Google alleging abuses of its dominant position in breach of the EU's competition laws. Three complaints have resulted in formal charges against Google: those relating to Google Shopping, the Android operating system and to Google AdSense. Google has been found guilty of antitrust breaches in the three cases and has been fined over €8 billion. In 2020, the European Union has also launched a full investigation of Google's proposed acquisition of the fitness tracker and wearable health company Fitbit, under the EU Merger Regulation. The operation was eventually cleared on 17 December 2020 subject to conditions.

<span class="mw-page-title-main">Wish (company)</span> American online e-commerce platform

Wish is an American online e-commerce platform for transactions between sellers and buyers. Wish was founded in 2010 by Piotr Szulczewski and Danny Zhang.

Pricesearcher was an independent e-commerce search engine launched in the UK in 2016 which now focussing on top 10 lists and providing lists based on sales with no price comparison functionality. It does not use the traditional Price Comparison Website (PCW) model adopted by comparison sites such as Moneysupermarket.com and search engines such as Google Shopping where retailers pay to list their products for sale. Since its inception, it has listed products from online retailers, without charging a listing fee or commission for sales. Product search results are consequently unaffected by a retailer's marketing budget or lack thereof. Shoppers are able to use the vertical search engine as a price-checking tool, to see whether the goods they find 'on sale' elsewhere are genuinely a good deal.

<span class="mw-page-title-main">Advertising revenue</span> Income from displaying online ads

Advertising revenue is the monetary income that individuals and businesses earn from displaying paid advertisements on their websites, social media channels, or other platforms surrounding their internet-based content. In September 2018, the U.S Internet advertising market was estimated to be worth $111 billion, with market share being held mostly between Google, Facebook, Amazon, and Microsoft. These companies earn revenue through online advertising but also have initiated pathways for individual users and social media influencers to earn an income. Individuals and businesses can earn advertising revenue through advertising networks such as Google AdSense, YouTube monetization, or Outbrain.

<span class="mw-page-title-main">Digital Markets Act</span> European Union regulation on digital platforms

Digital Markets Act Regulation 2022 (EU) 2022/1925 ("DMA"), is an EU regulation that aims to make the digital economy fairer and more contestable. The regulation entered into force on 1 November 2022 and became applicable, for the most part, on 2 May 2023.

References

  1. "Google Feels a Little Froogle - InternetNews". Internet News. December 12, 2002. Retrieved March 12, 2016.
  2. 1 2 3 4 Samat, Sameer (May 31, 2012). "Google Commerce: Building a better shopping experience". Google Commerce Blog. Retrieved July 9, 2012.
  3. "Google Express becomes an all-new Google Shopping in big revamp". May 14, 2019.
  4. "Google testing its new personalized Shopping homepage in France". March 21, 2019.
  5. "Google Shopping".
  6. 1 2 Efrati, Amir (June 1, 2012). "Google to Require Retailers to Pay". Wall Street Journal. ISSN   0099-9660 . Retrieved July 9, 2012.
  7. 1 2 3 "European Commission - PRESS RELEASES - Press release - Antitrust: Commission fines Google €2.42 billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service". europa.eu. Retrieved June 27, 2017.
  8. Vise, David A.; Malseed, Mark (2006). The Google Story. Delta Trade Paperbacks. pp. 137–. ISBN   9780553383669. OCLC   898689633.
  9. "Google searches out an e-tail niche". CNET. Retrieved March 28, 2013.
  10. Salkever, Alex (January 13, 2003). "Will Froogle Be a Google for Shoppers?". Businessweek. Archived from the original on June 8, 2013. Retrieved March 28, 2013.
  11. 1 2 "Google takes the pun out of shopping". CNET. April 18, 2007. Retrieved March 28, 2013.
  12. Sullivan, Danny (May 31, 2012). "Google Product Search To Become Google Shopping, Use Pay-To-Play Model". Search Engine Land. Retrieved July 9, 2012.
  13. "Microsoft Scroogled Site Challenges Google Shopping Honesty". InformationWeek. Retrieved March 30, 2013.
  14. "Google Catalogs Comes To The Web, Now Integrated With Google Shopping". TechCrunch. Retrieved October 1, 2012.
  15. "Help shoppers take action, wherever and however they choose to shop". Google. March 19, 2018. Retrieved March 12, 2019.
  16. "Google Shopping Actions vs. Google Shopping: A real-world case study". Search Engine Land. March 11, 2019. Retrieved March 12, 2019.
  17. 1 2 Statement by Commissioner Vestager on Commission decision to fine Google €2.42 billion for abusing dominance as search engine by giving illegal advantage to own comparison shopping service, on europa.eu, accessed on July 7, 2017.
  18. Persch, Johannes (November 15, 2021). "Google Shopping: The General Court takes its position". Kluwer Competition Law Blog. Retrieved December 6, 2023.
  19. "Judgment of the General Court (Ninth Chamber, Extended Composition) of 10 November 2021. Google LLC, formerly Google Inc. and Alphabet, Inc. v European Commission. Case T-612/17". THE GENERAL COURT (Ninth Chamber, Extended Composition) hereby: 1. Annuls Article 1 of Commission Decision C(2017) 4444 final of 27 June 2017 relating to proceedings under Article 102 TFEU and Article 54 of the EEA Agreement (Case AT.39740 – Google Search (Shopping)) in so far only as the European Commission found an infringement of those provisions by Google LLC and Alphabet, Inc. in 13 national markets for general search services within the European Economic Area (EEA) on the basis of the existence of anticompetitive effects in those markets; 2. Dismisses the action as to the remainder;
  20. "Google and Alphabet v Commission (Google Shopping): Case C-48/22 P".
  21. Use the right language and currency. Google Merchant Center Help. Retrieved on June 13, 2019.