In today’s digital world, retailers know that selling their products online is necessary for success. Making the decision about how to sell online can be difficult. Amazon and Google Shopping are two giants in the e-commerce sales arena. But, it’s easy to choose between them when you know which one will give you the best return based on your objectives.
All about Google Shopping
Google Shopping has been in operation for a number of years, but Google has been introducing new features that now put Google Shopping in the position of head-to-head competition with Amazon.
How Google Shopping works:
Retailers use Google Ads, Google’s pay per click product, to display ads for their products on the Google search engine. Unlike standard search ads, Google designed these ads specifically for retailers. Online buyers can see product images, prices and more information. In addition, retailers can upload bulk product information to Google Shopping via Google Merchant Center.
When a buyer clicks on an ad, the retailer pays a fee, and the shopper is directed to the product page on the seller’s website. If the buyer purchases the product, the retailer processes and ships the order, and keeps the profit.
When to use Google Shopping:
Google Shopping may be your best alternative if these benefits and requirements match your objectives and capabilities:
- You have an existing e-commerce website. Since buyers are sent to your website, you’d need a well-designed website that is updated regularly.
- You want to minimize fees. Google doesn’t charge a recurring fee or take commission (Amazon requires a subscription fee in addition to the cost of clicks and commissions.
- You put a high priority on brand recognition. Since buyers land on your website, you’re able to reinforce your brand more than on Amazon, where the entire purchase takes place there.
- You want to expand your online presence. Even if you have a presence on Amazon, you may want to diversify with Google Shopping.
All about Amazon
The biggest difference between Google Shopping and Amazon is where the transaction takes place. Amazon is its own shopping platform, and all sales are processed there.
How Amazon works:
Amazon offers two types of accounts – Individual Seller Accounts and Pro Merchant Accounts.
Retailers can sell on Amazon as an Individual seller. There is no subscription fee, the closing fee is $.99 per sale, and the referral fee ranges from 6-20 percent of the sales price. However, Individual sellers can only sell up to 40 products a month. They don’t have access to automated ways to upload inventory, access to order reports or top placement on product detail pages.
Professional Sellers pay a $39.99 monthly subscription fee, no closing fee, and the same 6-20 percent referral fee. Professional Sellers can perform bulk product uploads and have access to other volume selling features.
When to use Amazon:
Amazon may be your best alternative if these benefits and requirements match your objectives and capabilities.
- You don’t have a well-established website. Amazon is perfect for companies who don’t plan to develop an upscale e-commerce website. This is especially attractive if the costs for web design and maintenance will be more than the cost of selling on Amazon over time.
- You want to take advantage of exposure to loyal Amazon buyers. Fifty-five percent of shoppers start their product search on Amazon, and they’re loyal to the platform.
- You don’t want the competition of a Google search. Amazon is still far behind Google in terms of managing pay per click operations. Therefore, its searches are generally less competitive.
- You want to avoid doing your own shipping. Some companies find that using Fulfillment by Amazon reduces their costs. Using that service entails packaging products and shipping them to an Amazon Fulfillment Center. Amazon then picks, packs and ships customer orders, along with providing tracking information to the customer. Amazon also coordinates inquiries, refunds and returns.
If you’ve decided whether to choose Amazon, Google Shopping or both, you’re ready to get started.
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