Understanding product pricing

This article provides a comprehensive overview of how various pricing features work together on Shopping ads and free listings. Whether you offer standard prices, sales, or special promotions, understanding these aspects will ensure your product information is accurate and informative for potential customers. Many of these pricing features will show up as annotations on your ads or free listings.

On this page

Note: Feature availability, requirements, and policies may vary by country. See individual feature articles for details.

Core pricing concepts

This section explains the main pricing concepts used on Shopping ads and free listings:

  • Price [price]: This refers to the standard price of your product, excluding any discounts, promotions, or loyalty (member) prices.
  • Sale Price [sale_price]: This is a temporary discounted price offered for a specific period, excluding any loyalty (member) prices.
  • Sales price annotations: When offering a sale price, sales price annotations will typically display both the original and discounted prices. Learn more about About sale price annotations.

Ad example with a sales price example

  • Price drop annotations: Price drop annotations make it easier for consumers to understand when the price of your products decreases significantly. Learn more about price drop annotations.

An example ad demonstrating a price drop on a smart watch


Automatic updates and discounts

You can automate some of your pricing actions:

  • Automatic price updates: You can enable automatic price updates to fix temporary inaccuracies with your prices to ensure your product prices reflect the prices on your site. Learn how to Allow Merchant Center to update product information automatically. Note: Automatic updates aren't a replacement for regular updates of your product data.
  • Automated discounts: An AI-powered solution that helps to effectively maximize (gross) profit performance across your entire inventory, while automating sale prices for your products.
  • Currency Conversion: Currency conversion helps you expand the reach of your products to more countries. Currency conversion is automatically enabled in all Merchant Center accounts. Just submit the products and prices you use on your website, and the tool will estimate the currency conversion and show this in your ads and listings.


Special pricing programs

Here are some special pricing programs you can utilize:

  • Regional price: You can set different prices for your products based on the geographical location where they are being offered. Learn more about Regional availability and pricing.
  • Promotion price: This refers to a specific discount offered at checkout through a promotional code or a promotional campaign. Promotions are structured discounts and can apply to multiple products. Get started with Promotions.
  • Loyalty price: This allows you to showcase discounted prices to your loyalty program members or shoppers who are interested in joining the program. Learn more about About merchant loyalty program.

An example ad displaying price and member price.


Subscription and installment options

These options allow you to offer flexible payment methods for your products:


Note: Depending on your region, you may need to factor in VAT (Value Added Tax) or other applicable taxes when setting your product prices. Learn more about Price requirements.

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