Google announced that it’s transitioning Google Product Search to a “purely commercial” model built on Product Listing Ads.

Currently, Product Search is a mix of paid and unpaid ads. To improve customer experience, it will become Google Shopping, where only merchants that pay will be listed.

By moving to an all-paid business model, Google is encouraging merchants to keep product information fresh, as well as to provide higher quality data — including price accuracy, latest offers, and product availability.

Over the next few months you will notice changes to as the company merges listings from Google Product Listing Ads and Google Product Search together.

The company is giving merchants a few months to transition as well as some incentives, including a $100 AdWords credit and a monthly credit for 10 percent of your total Product Listing ad spend.

In addition to those changes, Google is also rolling out Trusted Merchants, which it quietly announced last year. It essentially offers merchants a seal of approval — in badge form — based on a variety of factors, including account reviews and shipping times.

The company hopes that this will help to increase consumers’ confidence in online retailers, thus boosting online spending. To learn more about either initiative, or to get started, visit Google Shopping.

[Via: Mashable, Image credit: Wapster]