Cabinet Hardware

Google Shopping is a very quick and easy way for consumers to make a purchase online. Does this mean that Google Shopping is the correct route to market for suppliers and retailers? Is it relevant for low-cost or high-priced products? How easy is it to set-up and maintain? Will you see a return on advertising spend (ROAS) utilising Google Shopping or is it a “loss leader” promotion to get shoppers to your website to be upsold and remarketed to?

What is Google Shopping?
Google Shopping is the current name of the service that allows internet users and shoppers to search for products and compare prices. Previously the service has been called the uninspiring, but exact match keyword phrase “Google Product Search”, and was also once called “Froogle” which although a nice play on words of Google and frugal, may have given advertisers the impression that people who use the service were solely looking for cheap deals and was not the marketplace for quality products at reasonable prices.

Google Shopping displays images, brief details and review scores of relevant products to the search made by the potential customer. The images and advertisements are placed above the natural search results.

Some people may mistakingly believe that getting your products in the Shopping section of the results can be achieved through website optimisation (SEO). Although SEO will certainly help the website generally, and will definitely help products within the shopping section, Google Shopping is NOT part of the organic search results and to display your products in the shopping section requires paid advertising. Google Shopping is a “spin-off” or additional way to advertise through Google AdWords.

That said, do not be put off by having to spend money on promoting your products. As with all Google advertising, if set-up and managed correctly, Google Shopping can deliver a great return on investment and can be a very economical way of generating sales.

Since January 2017, merchants have enjoyed a 52% of click share for retailers marketing and the first time shopping clicks exceeded those of clicks from “text ads”. If you are a retailer – Google Shopping is delivering the volume.

Will Google Shopping Generate a Good Return on Advertising Spend (ROAS)?
Every savvy business owner knows that the success of a thriving business comes from getting sales at the lowest price possible. However, you drive awareness or promote products there is usually a cost involved. This can be the cost of printing and distributing a leaflet, through to creating an advertisement and buying TV ad slots. If you are retail premises, simply putting up a promotional poster involves a cost. All of these costs are called “advertising costs” and should be measured to determine the revenue or “return” generated from the spend.

Whilst measuring the return directly generated from a poster, radio or TV advertising can be a challenge, with Google Shopping you can measure the return on your advertising spend in minute detail allowing you to make sensible business decisions around budgets and the “return on advertising spend” (ROAS).

How To Correctly Measure The ROAS
How Google measures ROAS, may be different to your normal understanding of the term. It will certainly be different from the understanding your Finance Director or Accountant will have on ROAS. If you are setting goals or targets within your Shopping campaigns it is important to fully understand the difference in accepted measurements.

Firstly, let us understand exactly what ROAS means in Google AdWords. Return on Ad Spend is a term that Google has defined as “sales divided by ad spend”. So if you invest £1, and you get back £5, Google would measure that as a 500% return But in finance terminology, the return is widely understood to mean the profit returned in addition to the initial investment. So if you invest £1, and you get back £5, that is not a 500% return, it is a 400% return. You got your initial £1 back and £4 additional revenue, for a 400% return.

So Does Google Shopping Deliver a Good ROAS?
In simple terms of £1 spent and £X generated in revenue, the answer is “Yes”. If you add to this cross-sell opportunities and additional sales achieved through remarketing, the answer is a resounding “YES!”

At the start of 2017, Google released data on “Performance by Category” for the previous 12-months. Although this looks at the shopping market in the USA, there is no reason to doubt similar results cannot be achieved in the UK.

Ecommerce shopping is the buzzword of our times with millions of customers across the globe opting for online shopping over brick and mortar shops. This has made it imperative for retailers to go for entrepreneurs are still focusing on ecommerce website development or finding a reliable turnkey solution to take their business online.

The task of website development for any business model is complicated. It needs analysis of several aspects from user-experience till the performance. If the ecommerce website is not good enough to offer a simple way of shopping to the users then customers are likely to choose some other site for shopping.

One effective way to save time and create an online store at an affordable cost is by choosing ecommerce platform providers. They provide a readymade solution for all your ecommerce website creation needs with multiple attractive features. Before choosing an ecommerce platform, there are several points to be considered to make the outcome fully functional.

Let’s take a look at some of those key points.

User friendly platform- An easy to use platform that allows existing as well as new users to search for the desired products and checkout easily is always the first choice of customers. In the ecommerce website development process, the convenience of the customers while using the platform should be prioritized. As per statistics, 30% of customers use the search option to find their desired products. Hence easy navigation, quick search option, and seamless checkout are mandatory for attracting customers and should not be missed.

Security- The biggest concern while making transactions on the internet is security. Customers share their confidential details like credit/ debit card number, passwords etc with the trust that their data is secured. Ignoring security can even lead to the loss of money of the customers which can ultimately have adverse effects on the reputation and sales of the online store. In the ecommerce website development process, it becomes necessary to implement SSL encryption for ensuring the security of the personal information of customers.

Responsive Design- Ensuring that the ecommerce website is optimized for mobiles is important as the majority of the customers use their mobile phones for shopping nowadays. Implementing responsive designs such that the ecommerce site is easily accessible on every device is important for making it successful. If the online store is not optimized for all the devices and does not provide a good user experience then the site is likely to lose the ever-growing group of customers.

Site performance optimization- According to statistics, a site that takes more than 3 seconds to load is abandoned by 40% users. This can happen often with mobile users who often access multiple websites at any time of the day. Losing customers due to the slow load time of the site should not happen with any online site. Hence, site optimization is one feature which needs to be considered during the ecommerce website development process. Techniques like using compressed images, combining a site’s JavaScript and CSS files in a single file can help in speeding up the site.

Creating an online store with all the mentioned features is not a task that can be accomplished in a single day. But making the process easier can be done with the help of ecommerce platforms that provides multiple features and saves time.

If you are looking for an affordable solution for building an online store, you can choose Store Hippo- a SaaS based DIY platform. We provide all the listed features and can help you in taking your ecommerce business to a new level of success.

This startling figure comes from a recent review of the financial advice offered from the big four banks by the Australian Securities and Investment Commission (ASIC).

Even more startling: 10% of advice was found to leave investors in an even worse financial position.

Through a “vertically integrated business model”, Commonwealth Bank, National Australia Bank, Westpac, ANZ and AMP offer ‘in house’ financial advice, and collectively, control more than half of Australia’s financial planners.

It’s no surprise ASIC’s review found advisers at these banks favoured financial products that connected to their parent company, with 68% of client’s funds invested in ‘in house’ products as oppose to external products that may have been on the firms list.

Why the banks integrated financial advice model is flawed

It’s hard to believe the banks can keep a straight face and say they can abide by the duty for advisers to act absolutely in the best interests of a client.

Under the integrated financial advice model, there are layers of different fees including adviser fees, platform fees and investment management fees adding up to 2.5-3.5%

The typical breakdown of fees is usually as follows: an adviser charge of 0.8% to 1.1%, a platform fee of between 0.4% and 0.8%, and a managed fund fee of between 0.7% and 2.1%. These fees are not only opaque, but are sufficiently high to limit the ability of the client to quickly earn real rates of return.

Layers of fees placed into the business model used by the banks means there is not necessarily an incentive for the financial advice arm to make a profit, because the profits can be made in the upstream parts of the supply chain through the banks promoting their own products.

This business model, however, is flawed, and cannot survive in a world where people are demanding greater accountability for their investments, increased transparency in relation to fees and increased control over their investments.

It is noteworthy that the truly independent financial advisory firms in Australia that offer separately managed accounts have done everything in their power to avoid using managed funds and keep fee’s competitive.

The banks have refused to admit their integrated approach to advice is fatally flawed. When the Australian Financial Review approached the Financial Services Council (FSC), a peak body that represents the ‘for-profit’ wealth managers, for a defence if the layered fee arrangements, a spokesman said no generalisations could be made.

There are fundamental flaws in the advice model, and it will be interesting to see what the upcoming royal commission into banking will do to change some of the contentious issues surround integrated financial advice.

Many financial commentators are calling for a separation of financial advice attached to banks, with obvious bias and failure to meet the best interests of clients becoming more apparent.

Chris Brycki, CEO of Stockspot, says “investors should receive fair and unbiased financial advice from experts who will act in the best interests of their client. What Australians currently get is product pushing from salespeople who are paid by the banks.”

Brycki is calling for structural reform to fix the problems caused by the dominant market power of the banks to ensure that consumers are protected, advisers are better educated and incentives are aligned.

Throughout, history, we have experienced, a variety of economic conditions, and circumstances, including, recession, inflation, and somewhere, in – between! For a few years, we experienced, very – low inflation, largely, caused by a variety of conditions, world – wide, and largely, disrupted – by, the ramifications, and impacts, created and caused, by this horrific pandemic! Currently, we seem to be experiencing, a serious amount of inflation, created, by many factors, including, but, not, limited – to: post – pandemic ramifications; Supply and Demand issues, caused, to a large – degree, by, supply – chain, issues; maintaining, unrealistically – low, prolonged period of near – record – low, interest rates, etc. With, that in mind, this article will attempt to, briefly, examine, consider, review, and discuss, 6 potential dangers, from prolonged periods of inflation, and why, it is important to know, and understand, options and alternatives, to attempt to choose, the best – path – forward!

1. Cost of Living: Some factors, determining, the Cost of Living, include: wages (and wage growth); prices, etc, and how wages, are, or, aren’t able, to keep – up, with the increase in costs, etc! Most realize, we have, in the past – few months, experienced, a huge, jump, in pricing, most – apparent, in the food stores, restaurants, and, nearly, everything, related – to, day – to – day, existence, etc!

2. Federal Reserve: In recent times, the near – historic – low, extended period, of interest rates, has, in addition, to the intended measures (helping businesses, and the economy, in trying – times), has caused a Real Estate, Sellers Market, and, a huge rise, in home prices, in most parts of this country! In addition, it created a surge, in consumer use of credit, because, borrowing, appeared, cheaper! However, most economists forecast, many of these supports, and maintaining, such low rates, will, gradually, be reduced (or minimized), probably, beginning, next year. What impact will that have, and will we see, the historic reaction, which has been, when rates rise, it helps reduce inflation, etc?

3. National economy/ conditions: Largely, because of a world – wide, supply – chain, set of obstacles/ challenged, many industries, have experienced, challenges, in terms of, getting sufficient amounts of needed materials, etc! Go into, nearly, any store, and you will see, more – sparse, shelves, than we have seen, in recent memory! In addition, building supplies, products, food, toys, cars and car parts, etc, are under – stress, because of this!

4. Worldwide economies/ economic conditions: Nearly, every nation, is experiencing, economic issues and challenges! The United Kingdom, because of worldwide, as well as specific national trends/ causes/ conditions, has been largely, impacted! Since, we live, largely, in a global economy, when there is any disruption, in the supply – chain, it affects, everyone!

5. Stock and Bond Markets: Because of several reasons/ factors, the United States Stock Market, has benefited, significantly, and experienced, significant increases, in the price of stocks. In addition to the obvious ones, because, interest rates, have been, so low, many investors, believed, stocks, were, nearly, the only game – in – town! When, if, interest rates, rise, bond rates, will rise, and existing, bond prices, will adjust, and drop!

6. Immediate, intermediate, longer – term ramifications/ impacts: The immediate impact of inflation, is, usually, rising prices, and, wages, which, usually, rise, at a far – lower rate! In the intermediate – period, we begin to see, weakening economic trends, and in the longer – term, depending on how long, it ensues, there are often, several, undesirable ramifications, and impacts!

Don’t take inflation, and its risks, for – granted! The more you know, and understand, the better prepared, you will be!

Although, we hear, a lot of opinions, about, interest rates, and their trends, and impacts, very few people seem to understand, the significance, and importance/ relevance, of these rates, in several areas of our lives! After, many decades of involvement, in political campaigns, leadership, leadership training/ planning, real estate, financial sales and consulting, etc, I strongly believed, one benefits, by understanding, more about these, and how they affect, many things, in our lives! Whether, related to personal, organizational, and/ or, public finance/ spending, home ownership and related costs, credit – related issues, business matters, stock and bond pricing, etc, interest rates, truly, significantly, matter! With, that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, 5 of these areas, and how the cost – of – money, makes a significant difference.

1. Bond prices and interest rates: The price of a bond, generally, is inversely – related to interest rates! When these rates go down, prices, rise, and when they go up, the inverse occurs! Bonds have, what is known, as, a par – value, which is the price, paid, at the end of the term. Markets usually set these at 100, which represents $1,000 per bond, at maturity. However, during the period, the pricing can rise or fall, which impacts, liquidity – related issues!

2. Mortgage rates: For the last few years, we have been witnessing and experiencing, record – low, mortgage interest rates, which have helped the overall, real estate/ housing market, especially, in terms of, pricing increases! In most areas of this country, we are seeing, home prices, at their highest levels, ever, by a significant, dramatic amount! When this rate, is low, a home buyer is able to buy, more – house – for – his – bucks, because, his monthly payments, are so low! Consider, however, what might be the potential ramifications, and impacts, when these rates, will, inevitably, rise?

3. Consumer credit: Low costs of borrowing, help the automobile industry, in terms of consumer financing, etc! Although, not as much as other vehicles, rates on credit card debt, are lower, and there are often, shorter – term, promotions, offering deals! However, since, most of these are variable, and based, on some index, etc, what happens, when there is an increase, in this?

4. Business borrowing: Another area affected, is business cost of borrowing! Presently, they have had access, to relatively, cheap – money, which helps in reducing the costs of borrowing, overall operations, purchasing inventory, etc. But, what happens, when this, ticks – up?

5. Impacts on stock market prices: For some time, because bonds have paid so little, in terms of dividends, etc, many have considered, the stock market, the only game, in – town! In addition, many corporations, have seemed, better – off, than they probably are, and we have witnessed, a higher, ratio of prices to profits, than in the past! How long will this last? How high can it go?

Many factors impact these issues, especially: actual and/ or, perceived inflation; consumer confidence; politics/ government actions/ the Federal Reserve, etc. The more you know, and understand, hopefully, the better – prepared, you will be!