Google's introduction of "Automated discounts" on Google Shopping has sparked concerns among e-retailers, who fear it may disadvantage loyal customers and alter consumer behaviour.
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The new feature allows merchants to set a maximum discount, with Google's AI determining individual pricing based on user behaviour and search history. This means that the same product may appear at different prices for different customers. For example, an item might cost 300 kronor when found via Google Shopping but 500 kronor if purchased directly from the retailer's website.
Many merchants feel compelled to use the feature, as Google Shopping is already a major customer acquisition channel. Some hope that lower-margin discounts will lead to additional purchases of higher-margin products, but the long-term effects remain uncertain.
While the feature may be difficult for e-retailers to ignore, its impact on pricing strategies and customer trust remains a growing concern.
Source: www.ehandel.se