Google Buy Button: Will it Impact E-commerce?

The Google buy button is not yet 100% confirmed, but if it happens, then you may be able to buy things directly from search engine results pages. Google will handle the payment processing, which will be very similar to the processing PayPal offers in that you may enter your card details or use a pre-paid account.

Why are they doing it?

We have reached a stage where we can trust Google. Some are saying Google are installing the buy button to push out smaller businesses and reward the companies that pay higher click fees. The possibility of higher click fees may be one reason why Google are doing it, but another is so they may compete with Amazon.

Amazon is dominating the online eCommerce world to the point where it is unavoidable if you want to buy something online. They are rolling out the buy button on mobile phones first, but the idea is that instead of jumping straight to Amazon, people take a look at what else is on offer and buy without fear of their card details being misused.

What about Google shopping?

Some think the buy button may reduce the use of Google shopping to the point where it becomes obsolete, but what will most likely happen is that the buy button will become an extension of Google shopping.

Some have accused Google shopping of hindering customer loyalty, and others say it gives people a wider scope and more options. The buy button would yet again hinder customer loyalty as Google will not pass on the email addresses and phone numbers of customers so that online retailers can contact them. Is this a good thing? Many consumers would say yes, and many retailers would say no.

The companies paying the highest click prices are going to benefit the most from the Google buy button, but suerly that only applies to companies that have already ranked up the Google search engine results organically. If not, then Google is going to turn its buy button premise and its Google shopping platform into a “highest bidder wins” scenario, and we have already seen how negatively that has worked out for “sponsored click” comparison sites.

Is it just for mobile commerce?

At the moment, if it happens, the Google buy button will only be used on mobile phones. There is no indication that it will be moved over to desktop websites and/or desktop computers. Though, if it has the desired effect of releasing the stranglehold that Amazon has on the online eCommerce world, then it may be brought over to desktop computers too.

Google have made it clear that they are trying to improve the mobile buying habits of their users. One big concern is security when it comes to mobile phones, with many people preferring to research on their phone and then buy on their computer. With the buy button, they may feel a little more relaxed about their purchasing in the same way that PayPal and Amazon one-click users feel safer about their purchasing via their mobile phone.

How will it affect coupon portals?

If the buy button becomes an extension of Google shopping, then what will happen to coupon portals? People use websites such as couporando.co.uk to find deals and codes that they can use to save money or get better value for money. Won’t the buy button push them out? Is Google ready to accept things such as discount codes via their payment processing? It may be assumed that coupon portals will not be as widely used, but it may go the other way. Companies may invest more time in creating coupons and discount codes in order to combat the loss in custom they are suffering due to the buy button. On the other hand, companies listed with Google shopping that are no longer able to build customer loyalty as efficiently, may turn to coupon portals to help build better customer relationships.