Google Experimentally Returns to First-Order Incentives
Google continues to refine the user experience within its Shopping Ads ecosystem. Recent sightings indicate that the search giant is once again testing a specialized label designed to attract new customers. This latest iteration, dubbed the “1st order price” label, aims to highlight exclusive discounts available specifically to users making their first purchase from a particular retailer.
This is not the first time Google has explored this concept. Over a year ago, similar “First order” labels were spotted in search results. However, the new variation focuses more explicitly on the pricing element, making the financial incentive the center of the advertisement’s appeal.
Analyzing the ‘1st Order Price’ Label
The new labels function as a psychological trigger for shoppers. By explicitly stating that a lower price is available for a first-time buyer, retailers can potentially lower the barrier to entry for new customer acquisition. In a highly competitive e-commerce landscape, the ability to signal a “welcome discount” directly on the search results page—before the user even clicks through to the landing page—could significantly increase Click-Through Rates (CTR).
The discovery was brought to light by industry observer Sachin Patel via X (formerly Twitter), where screenshots show the label integrated into the standard Shopping Ad format. While the previous version of the test was more generic, this version is specifically tailored to highlight the discounted price point.
Potential Challenges and User Confusion
Despite the potential for increased conversions, the implementation of such labels is not without risk. Industry experts and analysts have raised concerns regarding user clarity. When a shopper sees a “1st order price,” there may be confusion regarding whether the price shown is the standard price or the discounted price.
If the label is not clearly distinguished, users might feel misled upon reaching the checkout page if they realize the discount only applies under specific conditions or if the ad price was not the base price. The effectiveness of this feature will depend heavily on how Google balances the visibility of the incentive with the transparency of the actual product cost.
What This Means for E-commerce Advertisers
If this feature moves from a limited test to a wide rollout, it will provide a powerful tool for brands focused on aggressive growth and customer acquisition. Merchants may need to adjust their feed management strategies to ensure that first-order promotions are accurately reflected in their Google Merchant Center data.
Advertisers should monitor their performance metrics closely to see if such labels lead to a higher volume of new customers versus returning ones, and whether the increased traffic translates into long-term customer loyalty or merely one-time opportunistic purchases.