A study of 1000 small and medium-sized e-commerce businesses has found that the costs of Google shopping have increased dramatically, while most businesses believe the Google ‘Buy Now’ button will be bad for their sales.

The study of 1000 SMEs across the UK, released today by leading PPC Agency, Koozai, found that 66% of businesses believe the costs of Google shopping are rising for their business.

Of these, 37% said costs had increased between 30% and 40%, 20% of businesses said costs had increased between 20% and 30%, while 13% and 11% has seen rising costs respectively of 10% to 20% and more than 40%.

Despite the increase in prices, 62% business still claimed that Google Shopping provided a good Return on Investment for their business.

Compared with the Google Search Network, 49% said that Google Shopping return on investment was better, with only 19% saying return on investment was lower. 17% said it was the same.

Of the respondents 42% said the introduction of Google’s ‘buy now’ button would negatively impact their sales, with only 27% saying it would be positive and 31% not knowing either way.

The survey also asked businesses about the launch of Google’s Manufacturers Center, which now gives manufacturers more control over how products are displayed. 68% of respondents said they would prefer to keep control of how products are displayed, with only 18% liking the changes.

Samantha Noble, Marketing Director of Koozai, said: “Google Shopping is growing dramatically and as a result competitor demand is pushing up prices. It is a platform that is designed to attract buyers that are at the point of sale making the ROI potential really significant if the campaigns are executed and managed correctly. Many businesses are finding that Google Shopping gives them a better return on investment than the traditional Google Search Network.

“This backs up a lot of research that shows shopper intent plays a large part in making Google Shopping successful.

“Many businesses are still skeptical about the introduction of Google’s ‘Buy Now’ button, with more than 42% saying that they believe it could negatively impact their sales. However, with 31% saying they didn’t know, the survey suggests businesses are either unaware of the pending ‘Buy Now’ button or are worried by the change and are automatically assuming that Google will be making profit at their expense.

“I am looking forward to seeing how Google Shopping campaigns perform with all the additional features that have been added in the run up to the busy Christmas holiday season when shopping sales will be at their peak.”