At the Code Conference on Wednesday, May 27th in Rancho Palos Verdes, California, Google announced that they will soon be adding a ‘buy button’ directly on the search result pages in order to make it easier for eShoppers to make immediate purchases.

Many people are anxiously waiting for further news to be announced at the I/O Developers Conference in San Francisco, which wraps up today, May 29th. Some, like eRetailers and those working in eCommerce, are more anxious than others.

What will the Google buy button mean for the world of ecommerce shops and online retail worldwide?

How it will work?

The button will only appear on Google’s paid product ads. Customers who are shopping via mobile phone can click on the ads and be immediately directed to a Google purchase webpage where they can quickly and easily purchase that single product or service. Unlike companies like Amazon, Google will not take a profit from the purchase, but rather from the pay per click advertisement where the button will be featured.

The pros

Some 90% of worldwide commerce is still done offline. Google chief business officer Omid Kordestani said that the Buy Button will encourage more people to shop online by reducing “friction” and time spent navigating through different webpages. A growing trust in online purchasing means more consumers willing to take the plunge and start shopping from their mobile devices.

The cons

There is concern that the relationship between the customer and the retailer will be jeopardized, much to the retailer’s dismay. When the company and its image is removed from the picture, and we are left with just the product available for purchase directly on a Google search page, it threatens everything for brand recall, to customer loyalty.

Furthermore, small and mid-sized online stores who cannot afford to pay for premium Google ad space like their big retailer counterparts might be at risk.

Conclusion

What does remain clear from this, is that eCommerce traffic will increase as a result of the Google Buy Button, perhaps even drastically, and e-retailers should be ready.

First, online retailers should keep in mind that the Google buy button will only be available from mobile phones and tablets, so it is important to consider making your webpages mobile optimized, if you have not done so already.

Second, the small and medium-sized e-stores who cannot pay for expensive Google ad space will need to stay one step ahead of the game by way of careful pricing strategy. Just because Google will offer practicality, does not mean consumers will no longer be interested in getting the best deal possible.

An influx in e-commerce price war will undoubtedly ensue, so having a superior pricing intelligence tool to stay one step ahead of the competition could mean the difference between sinking and sailing. Whether Google buy button will represent an iceberg or tailwind, will be the strategic decision of the e-merchant.

By Danielle Eisenbarth, PAARLY: Pricing Intelligence and Competitor Monitoring