According to a recent study, over 40 per cent of small businesses believe that the introduction of Google’s ‘buy now’ button would negatively impact their sales.
The study of 1000 SMEs across the UK, released by digital marketing agency, Koozai, surveyed small businesses about Google Shopping. The study found that 66 per cent of businesses believe the costs of Google shopping are rising for their business.
Of these, four out of ten said costs had increased between 30 per cent and 40 per cent, 20 per cent of businesses said costs had increased between 20 per cent and 30 per cent, while 13 per cent and 11 per cent has seen rising costs respectively of 10 per cent to 20 per cent and more than 40 per cent.
However, despite the increase in prices, 62 per cent business still claimed that Google Shopping provided a good Return on Investment for their business.
Compared with the Google Search Network, 49 per cent said that Google Shopping return on investment was better, with only 19 per cent saying return on investment was lower, 17 per cent said it was the same.
In terms of the ‘Buy’ button, which appears to be en vogue at the moment what with the likes of Facebook and Pinterest having already ventured into that territory, small businesses are not wholly convinced.
Of the respondents 42 per cent said the introduction of Google’s ‘buy now’ button would negatively impact their sales, with only 27 per cent saying it would be positive and 31 per cent not knowing either way.
One of the reasons that the research’s findings are circumspect verging on concerned is that many smaller merchants may not be fully aware of what exactly a Buy button will entail.
“With 31 per cent saying they didn’t know, the survey suggests businesses are either unaware of the pending ‘Buy Now’ button or are worried by the change and are automatically assuming that Google will be making profit at their expense,” said Samantha Noble, marketing director of Koozai.
“The data suggests that businesses need to be educated on the pros and cons of the Google ‘Buy Now’ button,” said the report.
The survey also asked businesses about the launch of Google’s Manufacturers Center, which now gives manufacturers more control over how products are displayed. 68 per cent of respondents said they would prefer to keep control of how products are displayed, with only 18 per cent liking the changes.
“Google Shopping is growing dramatically and as a result competitor demand is pushing up prices. It is a platform that is designed to attract buyers that are at the point of sale making the ROI potential really significant if the campaigns are executed and managed correctly. Many businesses are finding that Google Shopping gives them a better return on investment than the traditional Google Search Network,” added Samantha Noble.