Giving an indication of stepping up its rivalry with Amazon.com, Inc. (NASDAQ:AMZN), Google Inc (NASDAQ:GOOGL)’s began silently experimenting with low prices across a range of its product searches on Google.com. The savings on a specified item in Google’s Product Listing Ads are portrayed as a percentage off average.
Confirming the tests, Google’s spokesman said that these tests are being carried out as part of the company’s mission to help people enjoy unbelievable deals and get pricing information.
Though the new tests are being conducted for several months, it came to light this week only due to a revelation made by a premier E-commerce company, ChannelAdvisor. Ever since, these ads have been surfacing quite regularly, said Cot Wingo, Executive Chairman of the E-commerce portal. Further, he pinpointed that the new feature looks to be quite similar to Search Engine Land.
Analyzing the affects of Google’s new tests, Wingo opined that in lurking danger it not only cripples the performance of certain retailers but could erode the cash cow of Google’s search as well.
The tests are vital as there is an explicit shift in Google’s conventional method of operating on a cost-per-click model without giving any preference to discount price.
Elaborating on the new feature, Wingo said these tests are a continuation of past efforts in exhibiting items that are on sale through Google’s product ads.
For certain product searches, Google gives away pricing offers significantly lesser than the same or similar products from other merchants. For instance, Google announced 14% lower than the average price (Macy’s M Macy’s M -0.22% $299.99 for KitchenAid mixer. The e-commerce portal reasoned out that Google is making alterations since a large number of shoppers, in search of low-priced products, are turning to Amazon’s website and relatively new comer like Jet.com, and superseding Google.
Understandably, Google Inc (NASDAQ:GOOGL) is reluctant to giving the sourcing details as to how or from where it is retrieving the data to establish the average online price.