Please ensure Javascript is enabled for purposes of website accessibility

Google Offers Free Ad Listings on Google Shopping

By Rich Duprey – Apr 22, 2020 at 11:25AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The search giant moves to take on its e-commerce rival.

Alphabet (GOOG 0.02%) (GOOGL -0.01%) will allow sellers to list ads for free on its Google Shopping platform. The new policy will go into effect in the U.S. before the end of April and roll out globally over the next few months.

Google said the new policy has been in the works for some time, and had been expected to be introduced later this year, but the coronavirus pandemic caused the search giant to accelerate the timeline.

Google Shopping feature on smartphone

Image source: Google.

Taking on e-commerce again

The move comes at a time when (AMZN -0.54%) has irked third-party sellers by changing a number of its shipping policies, such as suspending fulfilling orders for non-essential products. 

Google's announcement may induce more sellers to give the Google Shopping platform consideration. It's also partnering with PayPal (PYPL 0.63%) to let merchants link their accounts to the service to receive payment.

Although a start, it may not be enough to convince many to abandon Amazon, as it remains the place where most consumers begin their search for a product they want to buy. It will, however, give third-party retailers another avenue of gaining exposure for free, although Google will continue to charge for sponsored listings on the site.

In a blog post announcing the change, Bill Ready, Google President of Commerce, said "For retailers, this change means free exposure to millions of people who come to Google every day for their shopping needs. For shoppers, it means more products from more stores, discoverable through the Google Shopping tab. For advertisers, this means paid campaigns can now be augmented with free listings."

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Rich Duprey has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares), Alphabet (C shares), Amazon, and PayPal Holdings and recommends the following options: short January 2022 $1940 calls on Amazon, long January 2022 $1920 calls on Amazon, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
$102.24 (0.02%) $0.02
Alphabet Inc. Stock Quote
Alphabet Inc.
$101.42 (-0.01%) $0.01, Inc. Stock Quote, Inc.
$120.30 (-0.54%) $0.65
PayPal Holdings, Inc. Stock Quote
PayPal Holdings, Inc.
$94.42 (0.63%) $0.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 10/07/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.