Marketing
12 May 2023
Google will test generative AI for shopping search
Shopping results may get a new look on Google.
Photo by Pawel Czerwinski on Unsplash
Shopping results may get a new look on Google.
Google will apply generative AI to shopping searches as part of a series of new capabilities that rolled out this week at Google I/O.
With new updates to search in general, Google is aiming to expand the number of questions to which its search engine can provide answers, as well as change how the information is organized.
One of those functions includes shopping. According to a blog post, Google is now testing a new form of shopping search where users who type in the kind of item they are seeking get a “snapshot of noteworthy products to consider and products that fit the bill."
It will also display product descriptions that include reviews, ratings, prices and product images.
"With generative AI in Search, we can help you understand the full picture when you’re shopping, making even the most considered and complex purchase decisions faster and much easier," Google wrote in the blog post.
Google said the generative AI experience is built on Google’s Shopping Graph. This contains more than 35 billion product listings, with more than 1.8 billion listings refreshed every hour.
While there will be a new look to the results, familiar elements will still be in place. Ads will continue to be displayed as part of search results, Google said, appearing in dedicated slots throughout a page.
The experiment starts at Search Labs with a new initiative called SGE (Search Generative Experience). It’s available on Chrome desktop and the Google App. Access will begin opening up in the coming weeks, Google said.
The move offers the latest signal that a rapid period of growth in generative AI will bring about new tools for ecommerce. In this case, one of the most powerful search engines is transforming how it displays products, and aiming to get even better at answering questions. While this is still an early experiment, it suggests that generative AI has the potential to bring change to the structure of commerce on the web as we know it. Brand leaders should pay attention.
What will Amazon do? It's a question that looms over any shopping search announcement from Google. Amazon overtook Google as the top destination for new product searches. But improved tools from Google stand to make the search engine more attractive. Will Amazon respond with new capabilities of its own? The question becomes increasingly complex at a time when advertising is increasingly important to Amazon's business. It will likely tread carefully in any effort to tweak search results page structures that have proven to be lucrative.
Labor disputes on the West Coast could cause further disruption heading into peak season.
When the first half of 2023 is complete, imports are expected to dip 22% below last year.
That’s according to new data from the Global Port Tracker, which is compiled monthly by the National Retail Federation and Hackett Associates.
The decline has been building over the entire year, as imports dipped in the winter. With the spring, volume started to rebound. In April, the major ports handled 1.78 million Twenty-Foot Equivalent Units. That was an increase of 9.6% from March. Still it was a decline of 21.3% year over year – reflecting the record cargo hauled in over the spike in consumer demand of 2021 and the inventory glut 2022.
In 2023, consumer spending is remaining resilient with in a strong job market, despite the collision of inflation and interest rates. The economy remains different from pre-pandemic days, but shipping volumes are beginning to once again resemble the time before COVID-19.
“Economists and shipping lines increasingly wonder why the decline in container import demand is so much at odds with continuous growth in consumer demand,” said Hackett Associates Founder Ben Hackett, in a statement. “Import container shipments have returned the pre-pandemic levels seen in 2019 and appear likely to stay there for a while.”
Retailers and logistics professionals alike are looking to the second half of the year for a potential upswing. Peak shipping season occurs in the summer, which is in preparation for peak shopping season over the holidays.
Yet disruption could occur on the West Coast if labor issues can’t be settled. This week, ports from Los Angeles to Seattle reported closures and slowdowns as ongoing union disputes boil over, CNBC reported. NRF called on the Biden administration to intervene.
“Cargo volume is lower than last year but retailers are entering the busiest shipping season of the year bringing in holiday merchandise. The last thing retailers and other shippers need is ongoing disruption at the ports,” aid NRF Vice President for Supply Chain and Customs Policy Jonathan Gold said. “If labor and management can’t reach agreement and operate smoothly and efficiently, retailers will have no choice but to continue to take their cargo to East Coast and Gulf Coast gateways. We continue to urge the administration to step in and help the parties reach an agreement and end the disruptions so operations can return to normal. We’ve had enough unavoidable supply chain issues the past two years. This is not the time for one that can be avoided.”