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Google Checkout Promotion to End
Starting on May 6th, 2009 – Google checkout will be suspending their Adwords/Checkout promotion for advertisers. Currently any advertiser earning 0%-1000% ROAS (Revenue/Spend) from Google PPC, the use of the Checkout has been Free. “For every $1 you spend on AdWords each month, you can process $10 in sales the following month for free through Google Checkout.”
This was an amazing deal when you consider the cost for Credit Card Processing. After May 5th, the following fee structure will go into effect:
|
Monthly Sales Through Google Checkout |
Fees Per Transaction |
|
Less than $3,000 |
2.9% + $0.30 |
|
$3,000 – $9,999.99 |
2.5% + $0.30 |
|
$10,000 – $99,999.99 |
2.2% + $0.30 |
|
$100,000 or more |
1.9% + $0.30 |
“Any AdWords transaction processing credits accrued during April 2009 will be applied towards transactions that occur on May 1-4, 2009”
(http://checkout.google.com/seller/fees.html)
How will this affect the bottom line of an ecommerce store? Let’s say an advertiser gets 100 sales, which are $100 each, and spends $1,000 in AdWords advertising (1000% ROAS.)
What was once free will now cost the advertiser…
100 sales * $0.30 = $30.00
($100 per sale * 2.9%) * 100 Sales = $290.00
Total Due to Google Checkout = $320.00
I’m sure that Google has been waiting anxiously for this day when they can start really monetizing this service. I also doubt that many advertisers would walk away from this new fee structure (which is comparable to most credit card companies) and loose the Google Checkout Badge in their AdWords ads; a benefit we have as we’ve seen with our clients.
What has your experience been? Did the checkout badge influence your CTR or Conversion Rate?
