How Much Does Google Shopping Cost?
Google Shopping can cost you $1 a day, $1 a month, or more than $100 a day, depending on how much visibility you want your products to have. In Q4, we conducted a Google Shopping study which shows merchant costs on Google Shopping averaged at $11.30 in spend for every $100.00 in sales. Compared to other marketing channels, Google Shopping costs were extremely low, even lower than the flat fees on most Amazon Marketplace categories. Google Shopping, if managed correctly, should yield similar Google Shopping cost / revenue ratios, depending on your average order value, price compared to your competitors, and site-wide conversion rates.
You can dictate how much Google Shopping costs by increasing or decreasing your daily budget and your PPC bids. Keep in mind that if your costs on Google Shopping are low, you also will have low Google Shopping ad visibility.
Additionally, it’s important to know that Google will stop serving your ads once your Google Shopping daily budget is reached. So if you have a $20 max daily cost on Google Shopping, your Google Shopping ads will show up until that $20 is reached. If you have a high Google Shopping average CPC cost with a low Google Shopping cost, your ads will only appear for a fraction of the day as you will run out of spend more quickly.
The amount of products you have also plays a big role on how much your Google Shopping campaign will cost. If you have 100,000 products at a cost of 30 cents per click, you will spend a lot more than a merchant with 100 products at the same cost per click. Google determines which ads to display on Google Shopping based on how the keywords in your data feed match a consumer’s search, in addition to the CPC bids you set up in your Google Shopping PPC campaign.