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Google is looking to generate revenue from product searches

Google is looking to generate revenue from product searches

Google is looking to generate revenue from product searches

Internet giant Google is teaming up with leading USA retailers in a new initiative - Shopping Actions - that aims to helps them capture more online purchases from shoppers who might otherwise head to Amazon. Retailers list their products on Google Search and Google Express shopping services, and Google Assistant. In exchange, retailers will give Google a cut of the profit from each purchase, which is different from the usual ad payments retailers make to Google for sponsored listings.

For retailers, Google said that Shopping Actions uses a pay-per-sale model, "meaning you only pay when a sale actually takes place". Google reportedly wants to enable retailers to reaches better transactions and their customers, according to its spokesperson.

The previously unreported initiative sprang from Google's observation that tens of millions of consumers were sending image searches of products, asking "Where can I buy this?"

On top of its search engine, the company is also bringing native shopping features to Google Assistant. The program was announced by Google's President for Retail and Shopping, Daniel Alegre, in an exclusive interview with Reuters.

Later, when in the kitchen, they remember one more item that they missed, they can use the Google Home device to add that item to the same cart, and then order all items in one go.

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Help your customers shop effortlessly with you, across Google. Ulta sells makeup and skin care products from brands such as MAC, Estee Lauder and Clinique.

If Kelly does a search for "peach blush", for example, and she has opted to link her Google account with her Ultamate Rewards status, we'll recognize this and surface relevant blush results as well as related items - like makeup brushes - from Ulta Beauty to help her build a basket with her preferred retailer. Reuters calls voice search on smart home devices "the next frontier for e-commerce".

Google noted that these types of searches jumped 85% over the last few years. Amazon's Alexa platform could generate $10 billion in revenues by 2020, a separate report from RBC Capital Markets estimated.

"This is just the beginning for Target and Google", said Target's Chief Information and Digital Officer added. The fact that it's going to be helping someone compete with Amazon is just an added bonus that benefits both sides of the deal. As its part of the bargain, Google gets a piece of each purchase that's made.

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