Shopify shares soar after Google announced expansion of online shopping

Google is deepening its partnership with Shopify by making it easier for the company’s 1.7 million merchants to reach buyers on Google Search and some of its other properties.

The move comes as Google and Shopify are stepping up their efforts to compete against Amazon in e-commerce. Amazon is also increasingly competing with Google in search ads for business inquiries, which generally means that a consumer is actively considering a purchase, and is expected to get 19% of all search ad revenue this year, compared. with about 57% of Google, according to eMarketer.

Shares of Shopify appeared as much as 4% in the news.

Google made the announcement during its software developer conference, Google I / O, which began Tuesday. The company didn’t offer many details about the integration, but said it will allow Shopify businesses to appear on Google Search, Maps, Lens, Images and YouTube “with just a few clicks.”

In a blog post, Google said that this will make Shopify merchants’ products more visible across their various properties.

“We believe you deserve the most options available and we will continue to innovate in shopping every step of the way,” said Bill Ready, Google’s president of commerce and payments, during a presentation at I / O.

Separately, the company announced other enhancements to its e-commerce functionality: For example, Google’s Chrome browser will constantly display shopping carts when people open new tabs, so they can shop again after performing other tasks.

At the beginning of the pandemic, Google said it was eliminating commissions for merchants participating in its “Shop” program, which allows consumers to search and check retailers’ products directly on its platform without being directed to the sites of retailers. retailers. The company also said it would open up its platform to third-party vendors, including PayPal and Shopify, to allow retailers more shopping options outside of its own platform.

Google is again trying to step up its e-commerce efforts as the pandemic has created a lasting demand for online shopping, which Google’s competitors have taken advantage of.

In a blog post, the company said: “As we remove barriers such as fees and improve our technology, we have seen a 70% increase in the size of our product catalog and an 80% increase in merchants in our platform”.

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