Google may add Buy button to mobile searches: Possible impact on retailers

The concept of “Buy”button has been around since quite that has already been implemented by  leading social networking websites. It gained increased popularity, as it allowed social networkers to buy products that people from their network might have purchased and shared over their social media accounts. The “Buy ”button is directly linked with the retailers website, hence people can just click on the button which will lead them to the product page from where he can add it to the shopping cart and proceed with checkout process.

Google planning to launch“Buy Button”for mobile searches

Social networking sites Facebook, Twitter, and Tumblr have already rolled out its “Buy” button to general public, and following them Google is rumored to embed this feature in its mobile search results according to “The Wall Street Journal”which cited anonymous sources. It also mentions that retailers including Macy’s Inc. are in talks with Google about taking part in the launch.

With the increasing popularity of smartphones, more and more shoppers are using their mobile to search for products and purchase them online. For example,the Amazon’s buy button offers shoppers an ability to store payment information and make a one click purchase. Also, the screen size of mobile devices has no room for third-party ads, allowing no obstacles while  shopping. Recognizing the potential of this source, Google is planning to launch its “Buy” button.

What impact will Google “Buy” button create on retailers?

Boon to startups, but grave for large players

Google’s buy button can be a boost for start-ups earning them more sales and revenue that is important for growth. However, the same feature can be a loss for mid-size and large players, as the shopper will be able to purchase products without even having to visit the site. This will reduce brand engagement and visibility up to a great extent.

The news is shocking to many retailers, the Journal said. “The move marks a major and potentially risky strategy shift that will turn the company into more of an online transactional business, rather than simply a provider of links to information elsewhere on the Internet. Some retailers said they worry the move will turn Google from a valuable source of traffic into a marketplace where purchases happen on Google’s own websites.”

To overcome retailers concern,  Google will allow consumers to opt into the same marketing programs that they would be exposed to had they made the purchase on the retailers’ own websites, one of the people said. That means retailers will get address information and likely email addresses for future marketing efforts as long as shoppers opt in, as per one of WSJ’s source.

In Closing

Whether Google is seriously coming up with a “Buy” button or not, it will still enjoy its dominance over merchants via advertisements, charging some percent of each sale made via Google.