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Google Eliminates Commission For Sellers On Its E-Commerce Platform

Google Eliminates Commission For Sellers On Its E-Commerce Platform
A major a significant change has just been implemented by the search engine giant Google to its policy of e-commerce marketplace product, Google Shopping. The United States based search engine giant will now allow in all types of sellers on that platform - ranging from small retailers to big businesses — and will allow them to sell their products on the marketplace without having to pay any commission frees.
“Soon, sellers who participate in our Buy on Google checkout experience will no longer have to pay us a commission fee," the company wrote in a blog post recently.
Additionally, in order to get on to its platform, Google will also allow the sellers and retailers to make use of third party platforms like Shopify and Paypal.
For a start, the company is currently only implementing this new policy in the United States. Google has however said that it has plans of expanding this new policy to the rest of the international markets by the later half of the current year and then continue in 2021.
It is however pertinent to note that Google Shopping itself is not available in most of the markets that the company has business operations in.
While most of the retailers that make use of the Google’s e-marketplace do so to drive traffic to their websites, a section of the retailers also use it to for selling products, the company said. “By removing our commission fees, we’re lowering the cost of doing business and making it even easier for retailers of all sizes to sell directly on Google," the company wrote. Currently, this new policy is still in the pilot and Google will expand this facility to other sellers in the US over the “coming months", the company said.
This new policy is a marked change in the focus of Google towards e-commerce business, which is dominated globally by its Silicon Valley peer tech giant Amazon.
And with the announcement of the launch of the Shops platform, a foray into the e-commerce segment was also made earlier this month by the social media company, Facebook. It has dubbed its e-commerce project as its Marketplace initiative.
However what distinguishes Google’s initiative from those of both Facebook and Amazon is that sellers have to pay a commission to the later to companies against using their services.
The time of the new e-commerce policy from Google is also important because of the increased use of e-commerce worldwide because of the novel coronavirus pandemic and the associated restrictions. For example, recent industry reports in the growing market of India has suggested that bout 45 per cent of the total proportion of the country’s retail business transactions is set to captured by e-commerce business as well s in terms of coverage which will be the first time ever.
According to analysts, the total addressable market has grown, which gives Google an opportunity to take advantage as more users are being driven ot make purchasing from online sources.

Christopher J. Mitchell

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