Google introduces Black-owned business distinction in its Shopping tab

Dive Brief:

Google introduced a Black-owned designation to its Shopping tab to help consumers easily find and purchase from Black-owned businesses, the company announced on Monday.
Black-owned companies can add the distinction to their businesses through the Google Merchant Help Center. The company will make the feature visible to all U.S. shoppers over the next few months, according to the company's blog post.
The company said that searches for Black-owned businesses spiked 600% in 2020 compared to 2019. The company also noticed users searching for "Black-owned bookstores," "Black-owned beauty supply," "Black-owned restaurants" and similar terms.

Dive Insight:

Following nationwide racial justice protests last summer, many local communities have made a conscious effort to support Black-owned businesses. The tech giant responded to the demand by adding its Black-owned business designation to its Google Search and Maps tools in July to help consumers find Black businesses.

But despite this growing interest, a June report from the National Bureau of Economic Research found that 41% of Black-owned businesses have closed during the COVID-19 pandemic. To assist these merchants, Google has partnered with the Opportunity Finance Network to provide $30 million in loans and grants to Black-owned businesses and community lenders.

Over the course of the pandemic, Google has introduced a number of features to connect shoppers with sellers. In October, Google enhanced its visual search capabilities. The platform also released features to help consumers find local businesses offering services like curbside and in-store pickup in September.

In light of the 2020 Black Lives Matter protests, other Black-owned beauty brands were thrust into the spotlight, pushing retailers to highlight Black cosmetic companies and beauty brands to create Black-centered campaigns. That effort continued into 2021, with Ipsy committing $7 million to develop and promote Black-owned cosmetics brands.

As Google focuses on helping Black entrepreneurs survive the COVID-19 pandemic, other companies have provided funding and other resources to assist merchants in transitioning into e-commerce. Both eBay and Facebook dedicated $100 million toward supporting small businesses affected by the coronavirus pandemic.