Google's new feature allows retailers to set first-order discounts for new customers. Merchants can specify discount terms, enhancing e-commerce strategies.
Google Merchant Center launched a first-order discount feature in December 2024. It lets retailers target new customers with percentage-based discounts. Merchants can specify terms like purchase minimums and maximum discounts. Chelsea Harding, a Google Ads specialist, announced the feature on LinkedIn, saying it fills a gap in e-commerce promotional tools. The setup integrates seamlessly with Google Shopping and Performance Max campaigns, showing discounts directly in Shopping ads.
First-order discounts are a powerful customer acquisition tool. Retailers using Google Merchant Center can attract new shoppers during non-promotional periods. Adrian Decker, on the Marketing O'Clock podcast, noted the ease of setting shopper eligibility and discount parameters. These tools are valuable for direct-to-consumer brands and businesses entering new markets. The system automatically verifies first-time buyers, simplifying the process and boosting ad click-through rates.
The feature enhances acquisition strategies, especially for retailers with high customer lifetime value. It helps maintain profitability while expanding market reach. Early users reported successful implementation by December 5th, with discounts improving click-through rates. Saim, an early adopter, highlighted the robust functionality and simple interface. Experts recommend balancing discount terms to protect margins, like using purchase minimums and capping discounts.
The first-order discount feature is available globally through Google Merchant Center. It reflects Google's continued investment in retail tools, joining features like enhanced product feeds and automated updates. Launching post-Cyber Monday, it targets sustained year-round growth. Retailers should ensure their accounts are properly configured to maximize this tool. Google's focus on simplifying e-commerce solutions is evident in this timely release, catering to growing retailer needs.
Will Google’s first-order discounts change e-commerce forever?
Each week we select most important sector news and statistic
so that you can be up to speed