The Price Insights report in Merchant Center shows suggested sale prices for your products and predicts the performance that you can expect if you update your products' prices. Using the Price Insights report can help you price your products more effectively.
On this page
- Benefits
- Eligibility and requirements
- How it works
- Where can you find the Price Insights report
- Metrics available in the Price Insights report
Benefits
With the Price Insights report, you can:
- Understand the impact of price changes on business goals like profit, sales, or total number of clicks to your website.
- Improve your return on ad spend (ROAS) and conversions by providing competitive product pricing.
- Set better prices for your products.
If you’re eligible, set up automated discounts in your account so that your products get the recommended pricing provided by the Price Insights report.
Eligibility and requirements
To make sure that we have enough information to predict suggested prices:
- Provide cart data and upload cost of goods sold (COGS) for your offers
- Or, report back purchase conversions and use the target ROAS bidding strategy.
Even if you meet the above criteria, you may not be able to view the report because:
- You must meet certain minimum requirements for participation in Shopping ads.
- The prices are already competitive according to our models. You won’t be able to view the report if we don’t expect to see a significant increase in impressions, clicks, or conversions by changing your prices.
- You already signed up for the automated discounts program (which automatically applies the new prices to your website).
How it works
The Price Insights report uses complex models to simulate the performance of your offers at different prices over the last 7 days of traffic. These simulations are used to predict the most profitable prices.
The Price Insights report provides eligible merchants with expected impressions, clicks, conversions, and gross profit uplift for each offer that they should expect if they implement the suggested pricing. Product demand, competitors’ prices, number of sellers for similar products, estimated manufacturer costs, and estimated business profit margins are taken into consideration when suggesting prices. Keep in mind that predictions don’t guarantee performance outcomes.
Note: We recommend implementing the price obtained from the Price Insight report as a discounted price or a sale offer, rather than modifying the base price.
Where can you find the Price Insights report
- To view the Price Insights report, follow the steps below:
- Sign in to your Merchant Center account.
- Under Growth in the left navigation menu, click Price Insights.
- Additionally, the report is available through the Content API. Refer to Improve pricing article for more information.
Metrics available in the price insights report
- Price: There are 2 components to the price metric:
- Suggested sale price is the sale or discounted price predicted by Google to maximize gross profit for your business. It’s based on complex models to simulate the product's performance at different price points over the past 7 days.
To calculate suggested prices, we compare your existing price with the prices of a group of similar businesses selling the same products. The model additionally considers factors such as product demand, number of sellers offering similar products, and predicted profit margins for businesses similar to yours. These factors are analyzed to provide expected impressions, clicks, conversions, and gross profit if the suggested price is implemented.
It's important to keep in mind that, while the suggested prices provide valuable insights, predictions do not guarantee future performance outcomes. - Your price is the current price of your product visible to customers on Google.
- Suggested sale price is the sale or discounted price predicted by Google to maximize gross profit for your business. It’s based on complex models to simulate the product's performance at different price points over the past 7 days.
- Predicted impressions: Predicted increase in impressions if the suggested sale price is applied. Predictions are generated by models based on the past 7 days of performance data.
- Predicted clicks: Predicted increase in clicks if the suggested sale price is applied. Predictions are generated by models based on the past 7 days of performance data.
- Predicted conversions: Predicted increase in conversions if the suggested sale price is applied. Predictions are generated by models based on the past 7 days of performance data.
- Predicted gross profit: The predicted gross profit impact separates the estimated increase in profit into high, medium, and low buckets based on a combination of absolute and percentage predicted increase in gross profit. Suggestions with “high” impact are predicted to drive the largest increase in gross profit.
Gross profit is the profit made from all transactions attributed to clicks on your Shopping ads. It’s calculated by taking the difference between the revenue generated by a product (the price at which it’s sold) and the estimated cost of supplying the product based on profit margin estimates for businesses similar to yours. For more accurate predictions, you can start reporting conversions with cart data and uploading COGS for offers.