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Google To Require Retailers To Pay To Be In Google Shopping Results

gambit3 writes "In a move to squeeze more cash out of its lucrative Web-search engine, Google is converting its free product-search service into a paid one. Online retailers will now have to bid to display their products on Google's Shopping site. Currently, retailers include their products for free by providing Google with certain data about the products. Google then ranks those products, such as cameras, by popularity and price. 'We believe that having a commercial relationship with merchants will encourage them to keep their product information fresh and up to date. Higher quality data—whether it’s accurate prices, the latest offers or product availability—should mean better shopping results for users, which in turn should create higher quality traffic for merchants.'"

20 of 102 comments (clear)

  1. Good while it lasted... by raydobbs · · Score: 5, Insightful

    Well, that was a slightly useful tool when it worked... not so much now. Now I will just get a listing of who paid to be there, and who are sure to keep their prices fixed to one another.

    1. Re:Good while it lasted... by ajlowe · · Score: 2, Informative

      ... who are sure to keep their prices fixed to one another.

      As the owner of a medium size e-commerce site, I can tell you that most of the time that prices are fixed, it is not the fault of the retailers. Nine time out of ten, when you see every reputable retailer listing for exact same price, it is because the manufacturer has established a MAP (Minimum Advertised Pricing) policy where they will refuse to sell their product to any retailer who advertises their products below the MAP price. Most online retailers hate MAP as evidenced by our efforts to get around it by marking out prices, asking customers to create an account for best pricing, or not showing prices until the item is in the cart. These are all attempts to get around MAP policies which are instituted by manufacturers in order to protect their brick and mortar retailers by artificially inflating the price of the products online. MAP policies were illegal and considered price fixing in the US until a 2007 Supreme Court Case. More info http://en.wikipedia.org/wiki/Minimum_advertised_price.

  2. Yes indeed. by game+kid · · Score: 4, Insightful

    "Paid" does not imply "higher quality"; in search listings, it's quite the contrary.

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    You can hold down the "B" button for continuous firing.
    1. Re:Yes indeed. by AmiMoJo · · Score: 2

      It might if it gets rid of the spam. Since anyone can upload their price list at the moment there is a lot of crap, including eBay style misleading keyword spammed titles and plain wrong information. Making them pay will discourage casual spammers and allow Google to more easily block people who set up multiple websites for the same company or who persistently break the rules.

      I have no idea if it will actually work, but I have a feeling Google didn't just do it on a whim or out of pure short-term greed...

      --
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      SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
    2. Re:Yes indeed. by mounthood · · Score: 2

      User quality ratings should inversely determine advertising cost. High quality == free advertising. Perfect for G+ integration.

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      tomorrow who's gonna fuss
    3. Re:Yes indeed. by nabsltd · · Score: 3, Insightful

      Are you saying that as a retailer you will pay to have products listed which you no longer sell?

      Scammer's might.

      Right now, Google Shopping results hit a lot of places that either have much higher prices once you get to the site, don't have the item in stock (but will "order it" if you pay them first), or have other shady practices (not giving Google the correct shipping costs, price is only good for wholesale volume, etc.).

      Depending on the cost, some of those places might pay Google to keep them in the listing. Other, more reputable stores might have to either increase prices or drop off the Google list. So, it would appear that this change might lead to worse overall results.

      The solution to this is to allow users to mark results as good or bad, and use that as part of the sorting algorithm, but Google hasn't ever had anything like that for shopping results.

  3. Pay-to-Play v. Commercial Relationship by Bob9113 · · Score: 5, Insightful

    'We believe that having a commercial relationship with merchants will encourage them to keep their product information fresh and up to date. Higher quality dataâ"whether itâ(TM)s accurate prices, the latest offers or product availabilityâ"should mean better shopping results for users, which in turn should create higher quality traffic for merchants.'

    That is a fine explanation of why you want to have a formal relationship with the retailers that you include in your search engine. Of course, that has nothing to do with it being pay-to-play. The pay-to-play is the part that matters to your users. The quote above is clearly deflecting attention from the change from a search engine (motivated primarily to satisfy the user) to a shopping mall (motivated primarily to satisfy the retailer). That is the part that is significant to users.

  4. Oh yeah... by Anonymous Coward · · Score: 2, Insightful

    FTA:

    Google Shopping will empower businesses of all sizes to compete effectively

    I wonder how Google's marketing department managed to rationalize that one. Remind me again how putting monetary barriers to competing in a market empower businesses of all sizes?

    1. Re:Oh yeah... by TheRaven64 · · Score: 2

      I believe that they justified it with the symbol above the number 4 on their keyboards.

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      I am TheRaven on Soylent News
  5. Calm down by N1AK · · Score: 3, Interesting

    One of my biggest issues with Google shopping is the number of prices that aren't current and inability to tell legitimate new sites from frauds. If they can improve that while charging a marginal fee then I would accept that as a worthwhile deal. Ultimately if Google charges enough that competitive shops stop listing then it'll shoot them in the foot. Also, just about everyone in Google's listings appears to allow affiliate sites and or buyers to use cashback sites. Google would be effectively skimming off some of their profit margin that they are happy to give to others.

  6. and you won't get the cheapest. by Anonymous Coward · · Score: 3, Insightful

    And if you're shopping for the best price, the retailers with the lowest margins are not necessarily going to be paying to be on Google shopping because that'll eat into they're margins.

    I actually see Amazon not paying google.

    1. Re:and you won't get the cheapest. by tlhIngan · · Score: 2

      And if you're shopping for the best price, the retailers with the lowest margins are not necessarily going to be paying to be on Google shopping because that'll eat into they're margins.

      I actually see Amazon not paying google.

      Nothing wrong with that. I'd probably buy from Amazon even if Amazon's prices are higher - given a choice between Amazon and some shady site, I'd go Amazon every time.

      That's the problem with price comparison sites - either you go lowest price and hope the site is legit, or you go with a trusted, but more expensive site.

      Anyone who's bought a camera from non-reputable dealers probably knows this - having some cheaper deal go south because the seller asks if you want to pay for a battery, cables, lenses ether because they are "optional" in their version (i.e., they say they sell the complete kit, but it's just the bare minimum body they'll repack).

    2. Re:and you won't get the cheapest. by RobertLTux · · Score: 2

      what i would like to see is a way to disable E-Bay and other auction sites when im looking for something.

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    3. Re:and you won't get the cheapest. by Widowwolf · · Score: 3, Informative

      When searching for a product such as lets say crucial memory, just type Crucial Memory -ebay...

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      ~~"Of course, that's just my opinion. I could be wrong." ~~Dennis Miller
  7. It was never that good by Overzeetop · · Score: 2

    Using the shopping function is really a desperation measure - the prices are rarely "good" and the vendor list is exceedingly short. Anything that looks interesting is usually wrong. This is really on loss, since it's one of the few google services that simply isn't worth your time unless you need something obscure and you don't care where is comes from or how much it costs.

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  8. More to the story by Sentrion · · Score: 4, Funny

    Google is also requiring the retailers to pay in Google Dollars which feature a picture of Larry Page at the center of every bill. Beginning in August the new Google Dollars will be the only currency that Google will allow to be used for all transactions with or through Google websites. The new Google Dollars will end the debate over whether the US Dollar or Euro should be the de facto world currency.

  9. It's a different kind of search by Greenspark · · Score: 2

    Search listings that should be prioritized by popularity and relevance will be heavily skewed by 'paid' listings. But this is a different case, I think. Most of the information is supplied by the vendors. Therefore, it's easy for it to become out of date because the vendors have no accountability for maintaining it. However, if the vendor has to pay a little, then they're more inclined to either keep the values updated, or let the listing expire. It's quite possible that this will do exactly what Google claims: improve the data integrity. Of course, they're gonna put a little in their pockets in the process. But... don't most people expect to get paid in exchange for providing a service? A little revenue means there will be available funds for improvements. It's how things work. Advertisement has always had a cost. Why would Google's listing be ruined by it?

  10. Google got worthless for some searches years ago by GodfatherofSoul · · Score: 2, Interesting

    You look for anything that might be a product and you're going to be wading through pages of vendor sites. They should drop the shopping app altogether as it's already integrated with basic search.

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    I swear to God...I swear to God! That is NOT how you treat your human!
  11. Re:Calm down Francis. by Tough+Love · · Score: 2

    The knee jerk reaction about everything google does has gone from annoying, to numerous and now returning to annoying.

    At one time those "knee jerks" were nearly all trash-talking Microsoft astrofurfers, then after Jobs declared jihad I suppose it changed to a mix of Microsoft and Apple astroturfers. But now there is a new class of Google critic... people like me who used to think Google could do no wrong. But I have witnessed just too many examples of Google arrogance getting in the way of what is best for the user. A few examples off the top of my head: 1) Obfuscated search lilnks that spy on me, are stupidly awkward to copy, and often add ridiculous amounts of lag resolving to Google servers instead of to where I actually want to go. 2) Google news. In spite of literally thousands of comments from users that they all hated the beta, and essentially no comments in favor, Google ignored the resounding consensus completely and deployed anyway, causing thousands more negative comments. Today in spite of some window dressing it is still worse than the classic. 3) Android. Open source, closed development. As a result it has a fraction of the developers it could have, progresses more slowly, and sucks more than necessary, especially in areas that Google does not monetize. 4) Changed the search page to look like Bing. Good grief. At least Google had the sense to pull that after a few hours. But why didn't they check to see if everybody would hate it first? Oh, probably they did, and ignored the feedback just like news, the only difference being that this time the negatives cut straight at the core business and somebody with a clue recognized the danger.

    Now, the thing that makes it worse is, I still have a lot of respect for Google's corporate culture, unlilke Apple or Microsoft which seem to bent on outdoing each other sinking to new depths of corporate depravity. Google is not that far gone, far from it. That is why I personally tend to react more strongly to (possibly) stupid things that Google does. There is still hope that Google can be shamed into doing the right thing, unlike Microsoft or Apple.

    In this case I doubt there is any issue. The point is, I am now conditioned to expect the worst whenever I see a new alarmist article, troll or not, because of the really bonehead moves I mentioned above and others, that are incontrovertible facts.

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    When all you have is a hammer, every problem starts to look like a thumb.
  12. Re:But pegged to which currency? by Mabhatter · · Score: 2

    Pegged to Facebook, Zynga, XBox Live, Wiipoints... And Smurfberries!