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Google Offers Free Ad Listings on Google Shopping

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

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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 Amazon.com (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.

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Stocks Mentioned

Alphabet Inc. Stock Quote
Alphabet Inc.
GOOG
$102.24 (0.02%) $0.02
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$101.42 (-0.01%) $0.01
Amazon.com, Inc. Stock Quote
Amazon.com, Inc.
AMZN
$120.30 (-0.54%) $0.65
PayPal Holdings, Inc. Stock Quote
PayPal Holdings, Inc.
PYPL
$94.42 (0.63%) $0.59

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