Introduction to Google’s New Shopping Features
Google has announced new tools that allow shoppers to complete purchases directly within AI Mode and chat with branded AI agents in Search results. This means that users can now buy products from eligible listings on Google without having to visit the retailer’s website. The retailer remains the seller, but the checkout process takes place on Google’s platform.
How it Works
The Universal Commerce Protocol (UCP) is an open standard that powers checkout on eligible Google product listings in AI Mode in Search and the Gemini app. Google developed UCP with the help of several major retailers, including Shopify, Etsy, Wayfair, Target, and Walmart. More than 20 additional companies have endorsed the protocol, including Adyen, American Express, Best Buy, Mastercard, Stripe, The Home Depot, and Visa. Shoppers can use Google Pay with their payment methods and shipping information from Google Wallet, and PayPal support is coming soon.
Business Agent: Branded Chat in Search
Google’s Business Agent feature allows shoppers to chat with brands in Search results. This virtual sales associate can answer product questions in the brand’s voice, providing a more personalized shopping experience. The feature will go live on January 12 with several major retailers, including Lowe’s, Michael’s, Poshmark, and Reebok. Eligible U.S. retailers can activate and customize the agent through Merchant Center. Google plans to add more capabilities to the feature, including training agents on retailer data, providing product offers, and enabling purchases within the chat experience.
Direct Offers: Exclusive Discounts in AI Mode
Google has also announced Direct Offers, a new ad pilot in AI Mode. This feature allows advertisers to offer exclusive discounts to people searching for products. For example, a user searching for a rug might see a special 20% discount from a relevant retailer. Retailers can set up offers in campaign settings, and Google determines when to display them. Early partners include Petco, e.l.f. Cosmetics, Samsonite, Rugs USA, and Shopify merchants.
The Impact on Ecommerce
The introduction of checkout in AI Mode means that users can research, compare, and buy products without ever visiting the retailer’s website. This changes the traffic equation for ecommerce sites, as the sale still happens, but the site visit may not. Retailers participating in UCP gain access to high-intent buyers at the moment of decision, while those who don’t participate may find their products harder to surface when users expect to complete transactions without leaving Google.
What’s Next
Checkout in AI Mode will roll out to eligible U.S. retailers soon, while Business Agent will launch on January 12. Direct Offers is currently in pilot with select advertisers. Google plans to add new Merchant Center data attributes designed for discovery in AI Mode, Gemini, and Business Agent, and will roll out the new attributes with a small group of retailers before expanding more broadly.
Conclusion
Google’s new shopping features are set to revolutionize the way people shop online. With the ability to complete purchases directly within AI Mode and chat with branded AI agents, users will have a more seamless and personalized shopping experience. Retailers who participate in UCP will gain access to high-intent buyers, while those who don’t may struggle to surface their products. As Google continues to roll out these features, it will be interesting to see how they impact the ecommerce landscape.