New 0% commission fee for selling on Google through Shopping Actions in the US

July 23, 2020

We’ve announced a series of changes to the programs available to merchants selling on Google in the United States to make sure Google is even more of an open platform for digital commerce, where merchants of all sizes can sell for free, using the tools and providers of their choice.

What’s changing

In April, we made it free to list your products on the Shopping tab, and last month, we announced that free listings are coming soon to Google Search in the United States. Now, we’re making it free to sell your products directly on Google — Google will no longer charge you commission fees for purchases made through Shopping Actions. This new model will allow you to use your own payment provider, manage your customer service, and manage more of your processes, like returns. We're sending more and more invites each day — keep your eyes on your inbox — and later this year, we'll open sign-up to everyone. 

What this means for you

If you’re brand new to selling on Google through Shopping Actions: 

You’ll be invited to onboard directly to this new 0% commission version of the program. To submit your interest in joining, click the button below. Be sure to complete each section of the interest form, as all fields are required. If you select PayPal as your payment solution, you'll need to link your PayPal business account before you'll be able to submit the form. To link your accounts, click the link at the bottom of the payment solutions section of the form.


If your store is already live on the platform:

You’ll be invited to migrate your account to the new version with 0% commission over the next few weeks. When it’s time to migrate, you’ll find a Terms of Service overview page in Merchant Center, where you can accept the new Terms to take advantage of the new 0% commission rate. In the meantime, starting July 30, your commission rate will be automatically capped at 5% or less. 


Until then, we invite you to review a summary of the new program changes and requirements below. 

You’ll see updated help center content for new features as soon as Merchant Center opens for onboarding.

Program requirements

Link your payment service provider account in Merchant Center

  • To streamline payments servicing, you’ll now be able integrate your payment service provider with your Merchant Center account. Currently, the integration is available with PayPal, and others will be added soon. You’ll need to link your account using the Linked accounts section in Merchant Center, or directly in the payments platform. Keep in mind that your PayPal country and legal business entity name must match what appears in your Merchant Center account.
  • If your store is not yet integrated with PayPal, take a look at this article for next steps.
  • Once you’ve linked your Merchant Center and PayPal accounts, you’ll be able to check your PayPal account for transactions. Additionally, the existing settlement reports in your Merchant Center account will be updated to reflect transactions completed with your PayPal account.

Get ready to handle customer support directly

Decide how to generate return labels

Today, Google generates return labels on your behalf and charges a flat $5.50 per label. Going forward, you can manage returns in one of the following ways: 

  • Google-facilitated returns: To have Google generate return labels automatically, you’ll need to link your supported shipping carrier for returns. When a customer decides to make a return, Google will generate the return label on your behalf (using your carrier account) for which you'll be billed directly by your carrier.

  • Merchant-managed returns: If you choose not to provide Google with your carrier account info, you’ll be responsible for handling all returns. When a customer decides to make a return, you’ll receive a return request which you'll see in your Merchant Center account. Then, you’ll be able to either share your return labels directly in your Merchant Center account, or via Google’s API. 

For either method of managing returns, if you want to manage returns for a subset of your Shopping Actions inventory directly you may mark specific products with a special processing return rule.

Other changes

Amazon feed compatibility

If you’re new to Merchant Center, you’ll now be able to upload product feeds in the format you use for Amazon to your Merchant Center account (if this isn’t available to you right away, it will roll out for you soon). These feed files will be automatically mapped to work in Merchant Center. You’ll be able to use Amazon feeds in the following scenarios:

  • You have full product data and want to create products or you want to update your existing products.
  • You don't have full product information and want to match your products to our catalog or update your inventory.
  • You have data for price and quantity updates for products which have already been uploaded.

Income tax

Your supported payment service provider will now handle your income tax, TIN verification, withholding, and 1099 reporting, which means you’ll no longer need to enter or maintain this information in your Merchant Center account after you complete your migration.

Retailer Standards

As a result of reduced commissions, your Retailer Standards performance will no longer impact your commission rate starting July 30, 2020. 

Cross-border trade

For merchants incorporated outside of the United States, once you link your payment service platform account, a US bank account will no longer be required.

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