Naturally, product price has an impact on everything in eCommerce, but when it comes to Google Shopping this impact is incredibly severe. A simple 5% increase in price produced a whopping 60% drop in clicks while keeping the bid stable. It certainly appears as though impressions and clicks in Shopping are very sensitive to pricing, more specifically how your price compares to all the similar products on Google Shopping.
For a deeper insight into what is actually going on inside Google Shopping, we analyzed a dataset of more than 15,000 Google Shopping client conversions across the German, UK and US markets covering several international retailers from the fashion, sports, outdoor and luxury sectors.
What we found shed a lot of light on how price affects Shopping performance and why. It also gave us some insights into what retailers can do to turn this phenomenon into a positive for their business.