When you've launched your Shopping campaign and are now getting traffic, naturally you'll want to…
Google Shopping is part of the Google Ads advertising system, the world’s leading pay per click (PPC) platform. So, the cost of running your Google Shopping is not fixed and depends on the number of clicks you get for your product ads and the cost per click (CPC) for each.
That means there is no fixed cost or fee for running Shopping ads, and the amount you pay depends on the amount of traffic you get.
So, you’re not charged by Google to create a new account. You can create one in minutes and start advertising as soon as you’ve created your first campaign.
These are some of the main factors to consider regarding how much it will cost you to sell your products on Google Shopping:
Pay Per Click
With pay per click you pay for each click that your product listings get. This is the Google Ads advertising model. So, when people search on Google and see your products like the example below, and click through to your website, you will be charged for that.
Also, your sales are easily trackable with Google Shopping, and you will see which searches are leading to sales and which products too.
To have this data, you’ll need to setup conversion tracking in your Google Ads account and on your website.
Cost Per Click
Cost per click is how much you’re actually paying for your clicks on average and for each search query or product ad.
The amount that you actually pay is determined by a number or factors. One of these includes the type of searches that you’re appearing for. If you are appearing for transactional searches that are more related to purchases then they will usually be more competitive.
Also, if there are many competitors for the products you’re selling and the searches you’re appearing for, then the cost will usually be higher, especially as they bid higher too.
One of the benefits of Shopping ads is that competition is usually far lower than normal Search text ads and it’s possible to get click costs as low as 5p for some searches, which is almost impossible to see with text ads on Google.
The bid strategy you use also will determine the cost to sell your products on Google Shopping.
If you use an automated bid strategy like Maximise Clicks to try and get as much click traffic for your budget, that will usually increase your costs as the system bids to get you the best positions to help you reach your goal of more traffic.
However, you should also consider setting a maximum CPC bid to limit the average CPC that you’re charged across your campaign.
Also, using a manual bid strategy like Manual CPC will give you more control and helps you to bid higher if you want to. But remember this will increase your costs especially if you increase your budget too.
The budget is the maximum amount you want to spend daily. It is one of the main factors in determining what it costs to sell on Google Shopping.
The budget is set in your Shopping campaign in Google Ads and if you have multiple campaigns, you can assign one budget to them at the account level.
You can of course adjust this easily and even on a daily basis if you want. However, it’s always best to give the Shopping campaign some time to run when you have set a new budget and test to see what returns you get from the daily spend.
So, as I’ve described in this article the cost to sell on Google Shopping depends on a number of factors. There is no fixed cost like you get with other forms of advertising like print and TV. But the cost varies considerably from business to business and depending on what you want to spend and your advertising goals.
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Need help setting up Google Shopping ads? I’m a Google Ads specialist and Freelance PPC consultant and I help ecommerce sites and online retailers and businesses setup shopping feeds in Merchant Centre and setup campaigns in Google Ads. Contact me below to discuss.