Google ramps up competition against Amazon, drops e-commerce commission fees

Google has been making a steady effort to transform its e-commerce platform into an Amazon competitor.

The tech giant has been trying to recruit more sellers to Google Shopping since it offered free item listings on the e-commerce platform and Google Search in April and eliminated commission fees for retailers who list and sell items directly through Google on Thursday, the company said in a blog post.

"These changes are about providing all businesses—from small stores to national chains and online marketplaces—the best place to connect with customers, regardless of where a purchase eventually occurs," Google Commerce President Bill Ready wrote in the post.

He added that "with more products and stores available for discovery and the option to buy directly on Google or on a retailer’s site, shoppers will have more choice across the board."

CORONAVIRUS DRIVES E-COMMERCE SALES AS 5M NEW SHOPPERS AGE 45+ SHOP ONLINE

Google Shopping commissions previously ranged from 5 to 15 percent depending on how much items were sold for.

The tech giant also opened its platform to third-party payment providers like Shopify and PayPal on Thursday for retailers who sell directly on Google.

MARK CUBAN'S BUY-AMERICAN PUSH ON AMAZON

Additionally, the Google Shopping tag will have a filter that features small businesses for people who want to support small or local shops after coronavirus pandemic lockdowns led millions to close permanently or temporarily, with e-commerce being the only safe option left to generate revenue.

These changes will put Google in a more competitive position against Amazon, eBay and other e-commerce platforms. Amazon's individual seller plan costs $0.99 per unit sold, according to its website, and its Professional plan costs $39.99 per month for an unlimited number of units sold.

Additionally, sellers on Amazon pay a referral fee percentage ranging from 5 to 20 percent per item depending on the item's category. Some sellers may be subject to additional costs.

Facebook has also been ramping up its e-commerce efforts with its Facebook Shops, Facebook Marketplace and Instagram Shopping. The social media site has a 5-percent commission fee for every transaction more than $8 or a $0.40 commission fee for orders less than $8.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

U.S. e-commerce sales are expected to surge 18 percent to nearly $710 billion in 2020 while brick-and-mortar retail sales will drop 14 percent to more than $4 trillion, according to e-commerce research website eMarketer's July 22 executive summary.

Executives also estimate Amazon's e-commerce sales will make up 38 percent of total U.S. e-commerce sales in 2020. The tech giant will dominate in book, music and video sales; its grocery sales will also see significant growth, eMarketer research shows.

CLICK HERE TO READ MORE ON FOX BUSINESS