Retailers have expressed frustration at Google’s plan to charge businesses for a spot on its online shopping page, describing the move as yet another barrier to entry.
In late May the US search giant announced it would change the way businesses and products appeared on its hugely popular search engine. The new system will have an impact on both advertisements and listings on the Google Shopping site.
Under the new regime, businesses must pay fees to be listed in the Google Shopping service.
Google said the new system would encourage businesses to improve their online products and was positive for users. But the plan has caused an uproar, with some companies complaining that customers wanted the best natural matches. However, Google will complete the transition for US businesses within three months. “Our hope is to make this enhanced shopping experience available internationally at some point next year,” a Google Australia spokesman said.
Australian Retailers Association executive director Russell Zimmerman said the charge was yet another hurdle for bricks and mortar businesses trying to survive by selling products on the internet.
“But this is only going to make it difficult and put up further barriers.
“Retail is doing it tough and for another impediment to be put up at this time is fairly disappointing.”
Mr Zimmerman said the move would give businesses based entirely on the internet an advantage over traditional stores.
“It’s fine if you’re a young techno-head and you have a reasonable understanding of the online space,” he said. “But if you’re a mum and dad operator struggling to run a business . . . it’s not as easy to get into that.
“It would make it easier for those retailers [if Google Shopping was free].”
Brisbane-based costume and fabric outlet Glitter and Dance has a bricks and mortar store owned by Cassandra Wallace and her mother and sister. Wallace said Google’s new program could be a positive if it got rid of smaller operators who were unwilling to invest in advertising.
“You’d get rid of the riff raff and people that aren’t serious who just do it as a sideline,” she said. “It could advantage companies that put out lots of money to keep going.
“I’d need to see how it works after six months of being in the country . . . and it depends on how much it costs.”
Online-only furniture store Milan Direct is already in the beta program. Chief executive Dean Ramler said he was invited by Google as one of its biggest local advertisers.
“I think it’s a fantastic change and it’s something we’ll definitely embrace,” he said. “It gives the customers what they want, so if they type in ‘black office chairs’ our ads and images of black office chairs is what pops up and they don’t even have to visit our site.
“This means users don’t need to go through piles and piles of organic listings which aren’t that great.”
But not all online retailers are as keen. OHKI sells electronics and home appliances over the internet and its managing director, Lucas McEntree, said the extra charge was a frustration, but one his company would have to bear.
“It’s a shame that Google is charging for it . . . because the service drives a lot of business to us . . . but we always thought they would in the end,” he said. “Google changes the rules regularly and there is a cost to that, which is unwelcome, so it is frustrating, but there’s nothing you can do about it.”
But Mr McEntree said the main reason he was stuck paying for the service was because Google was highly effective at bringing customers to his website. “If you’re not on Google then you may as well not bother,” he said.
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