Google’s President of Commerce, Bill Ready, clarifies Google’s position as a facilitator of commerce, not a retailer or marketplace. The episode highlights Google’s strategy to grow its shopping ecosystem by offering free product listings and evolving its commerce options like "Buy on Google" and shoppable YouTube ads. This aims to empower merchants and enhance product discovery for consumers within an open web framework.
Key takeaways
Google differentiates itself from marketplaces like Amazon by focusing on product discovery and facilitating transactions, rather than competing directly as a retailer.
The decision to offer free product listings dramatically increased merchant participation (80% growth in 2020), indicating a strong incentive for brands to leverage Google for visibility.
Merchants can choose to use "Buy on Google" for direct transactions or link out to their own sites/marketplaces, offering flexibility in their sales channels.
Google is actively developing new commerce features like shoppable ad units on YouTube, presenting new opportunities for brands to engage with customers.
Google’s “open web” philosophy guides its commerce strategy, aiming to support a diverse ecosystem of merchants rather than walling them into a single platform.
Even major retailers like Amazon remain key advertising partners for Google, demonstrating a co-opetitive dynamic in the digital commerce landscape.
Google wants to make it crystal clear that it’s not a marketplace.
True, people can buy things on Google, but it also lets sellers link out to other marketplaces. On the Modern Retail Podcast, Bill Ready, the company’s president of commerce and payments, discussed this important nuance. “We’re not a retailer, we’re not a marketplace,” he said. In his estimation, Google is about helping shoppers discover products (and sometimes letting them transact with in the platform). While the site looks and feels like a marketplace, he insisted that Google’s utility provides something markedly different.
Google’s shopping capabilities have had quite the evolution. Its offerings have had fits and starts, to say the least. Currently, any merchant can upload products to be listed on Google’s shopping website. They can use Google’s commerce options -- called ‘Buy on Google’ -- or they can link out.
Last year, the company made the decision to make its listings completely free. Before, merchants had to purchase an ad in order to surface on the platform. All these moves, according to Ready, are because of Google’s belief in the open web. But making product listings free also meant more merchants tried out the platform; the company saw 80% more listings in 2020 compared to the year before.
The focus now, according to Ready, is to continue making services and products for merchants and get more brands comfortable with selling on Google. This includes testing out shoppable ad units on YouTube.
Of course, continuing to grow the ad business is also important. And who remains a big advertiser on Google? Amazon. “We partner with retailers of every size, including the largest and you know, Amazon is a partner that we work with quite closely as well,” said Ready. “It can oftentimes be a good storyline to say ‘hey, is this a competitive thing?’ [but] it really is a return to first principles for Google.”
What does this episode say about amazon & marketplaces?
Google differentiates itself from marketplaces like Amazon by focusing on product discovery and facilitating transactions, rather than competing directly as a retailer.
What does this episode say about paid acquisition?
The decision to offer free product listings dramatically increased merchant participation (80% growth in 2020), indicating a strong incentive for brands to leverage Google for visibility.
What does this episode say about retail & omnichannel?
Merchants can choose to use "Buy on Google" for direct transactions or link out to their own sites/marketplaces, offering flexibility in their sales channels.
What does this episode say about ai & automation?
Google is actively developing new commerce features like shoppable ad units on YouTube, presenting new opportunities for brands to engage with customers.
What does this episode say about amazon & marketplaces?
Google’s “open web” philosophy guides its commerce strategy, aiming to support a diverse ecosystem of merchants rather than walling them into a single platform.
