Google Automated Discounts vs Merchant Promotions

Shoppers often seek the best deals when shopping online, and promotions and discounts significantly influence their buying decisions. E-commerce merchants capitalize on this by offering various promotions and discounts for their products during special events and celebrations.

To maximize the impact of these promotions on Google Shopping, merchants can utilize two powerful features:

• Automated Discounts
• Merchant Promotions

These are two distinct features within Google Merchant Center, each designed to enhance product visibility and drive sales on Google Shopping.

Let’s take a look at each of these and understand the difference between them.

Automated Discounts

Basically, the automated discount feature is an AI-powered solution by Google that helps to effectively maximize (gross) profit performance across your entire inventory. Based on the attributes you assign, Google will automatically show dynamic discounted prices, different for each user, ensuring not to incur losses to the merchants. The discounts offered by Google are based on multiple real-time signals, which saves time, effort, and cost. 

• AI-Powered Discounts: This feature leverages Google’s AI learning and algorithm to automatically apply discounts to your products, based on various factors like product demand, sales trends, and market dynamics.
  
  
• Simplified Setup: You simply provide the cost of goods sold (COGS) and auto-pricing minimum price for your products, and Google’s algorithm determines the optimal discount. Also, ensure that you have implemented conversion tracking with cart data.
  
  
• Dynamic Pricing: Discounts are adjusted in real-time to maximize revenue and conversion rates.
  

Merchant Promotions

Merchant Promotions by Google is an add-on feature available in the merchant center for Shopping ads and free listings. It allows you to manually submit a promotions feed to Google, which could be a discount percentage, discount amount, or free shipping. Based on this, shoppers will see a special offer link that increases the appeal of the products and encourages more shoppers to buy.

• Manual Promotion Creation: You manually create and upload the Google Merchant Center promotions feed to your Merchant Center. Details like discount codes & percentages, expiration dates, eligibility criteria, and other information, must be specified.
  
  
• Enhanced Product Listings: Your products with promotions are highlighted with certain badges on Google Shopping, attracting more shopper attention.
  
  
• Increased Visibility: Promotions can boost your product visibility in search results and Shopping ads.

Google Automated Discounts and Merchant Promotions

Ultimately, the best choice depends on your specific business needs and goals. You may also consider using both features to maximize your sales potential on Google Shopping. Wouldn’t it be amazing if you could use a single shopping feed app to submit product feed for both Google Automated Discounts and Merchant Promotions? Try the Simprosys Google Shopping Feed App now!