Google product search which has been rechristened Google Shopping, was previously a free service that helped merchants and business owners to list their products for free. In many parts of the world Google product search has already been called Google Shopping but without the paid model. This is the first time that Google is moving a way from a free search product to a use pay-to-play model. The company says that it will better the shoppers experience in addition to making sure that business owners and merchants keep their product pricing and listings up to date. This would mean a better shopping experience for end users. This change will effect all business owners in the US and the entire transition will be complete later this fall. Other countries will get the paid model of Google Shopping early next year.
With this play-to-play model merchants will have more control over where and when their ads appear. which in turn should translate into better business but this time you are actually going to pay for it. So how will this effect your search ranking on Google Shopping. Google has said this will be based on a combination of factors like relevance and bid price. Which will function the same way display ads function. So if you have had experience placing ads on Google you will know how this functions. You will need to outbid your competitors to stay on top - could turn into an expensive proposition for business owners. As only merchants and business owners who pay will have their listings displayed. This brings to an end a 10-year free service that was being offered by Google. This will effect all business owners and whether you want to sell electronics, books, food and other goods. Google Shopping will come at a price. Merchants can also choose to participate in a program called Google Trusted Stores that will offer a report card on the merchant letting people know which stores offer reliable service and quick delivery. Taking it even a step further by working with you and the store if there is an issue.
Source: Google Commerce Blog learn more about Google Shopping here (Official Site).