Google Shopping wants to take a commission from retailers

Under a new program retailers can list their products on Google Search and Google Express

Google is working with a range of top retailers on the new effort, including Target, Walmart, Ulta Beauty, Costco, and Home Depot.

These companies will be able to promote their products on the tech giant's Google Assistant on tablets and smartphones and via Google Express shopping service.

Google Inc. aims to challenge Amazon.com Inc.'s dominance of the e-commerce market by making it easier for traditional retailers to put their products in front of users.

The number of searches containing the phase "how to buy" grew by a 85 percent in the past two years, according to Google.

With many online shoppers now being directed to Amazon for their product purchases, the new initiative will both generate significantly more revenue for Google and enable other companies such as Target and Walmart to more readily compete with Amazon in the ecommerce sphere.

Other online retailers have recognized this competition problem and so has the middleman Google.

Google is offering a new service called Shopping Actions which will allow consumers to spot something they want in a Google Images search and then buy it.

Shopping Actions, Google said, allows retailers to present new products on any of its platforms, including through voice shopping; "Help your customers shop effortlessly with you" through shareable shopping lists, universal shopping carts, and reward and engage with their "highest-value customers".

The new approach is different from what retailers usually have to pay when accessing Google ads. Further, the company added: "44% of those who use their voice-activated speaker at least weekly say they use the device to order products they need like groceries and household items at least once a week". The program, called Shopping Actions, will be available to all U.S. retailers. When you search for an item, such as toothpaste, you'll see a sponsored listing for an option from one of Google's partners and be able to add it to a Google Express cart.

ENEMY OF MY ENEMY IS MY FRIEND The retailers are also eager to get in on the rapidly growing voice shopping market dominated by Amazon's popular Echo home device, analysts and consultants said. Tens of millions of people to be more precise, and even a small slice of their eventual sales would do wonders for Google's revenue. The new program nearly coincides with a "broad" core algorithm update that impacts the Google search.

Both Walmart and Target past year struck deals to appear in search results via Google Home. There are chances that Google's latest algorithm change was carried to favor the brands that partnered with Google Actions. In launching Shopping Actions, the company is aiming to make more money from searches and give retailers a better chance of fighting off Amazon. Recently, the company updated its Lens tool to recognize landmarks, products from photos, and contact info from business cards.

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