Google has launched a new feature in its Merchant Center platform that enables retailers to offer first-order discounts to new customers, according to multiple industry sources. The functionality, which became available in December 2024, marks a significant expansion of Google's e-commerce promotional capabilities.
According to Chelsea Harding, a Google Ads specialist who first documented the feature on LinkedIn, merchants can now configure targeted promotions specifically for first-time buyers through their Merchant Center accounts. The new discount type appears as a selectable option under the "Promotion conditions" section when creating promotional offers.
The implementation allows retailers to specify percentage-based discounts exclusively for new customers making their initial purchase. During the setup process, merchants can define discount percentages, set minimum purchase requirements, and establish maximum discount amounts to protect their margins.
"Do you offer customers a first order discount? You can now set up a promotion in Google Merchant Center for your Shopping Ads," Harding noted in her announcement, emphasizing that the feature could prove particularly valuable during non-promotional periods when standard sales aren't running.
Marketing technology expert Adrian Decker, speaking on the Marketing O'Clock podcast five days after the initial announcement, highlighted the strategic importance of the new capability. "This is live in merchant center, spotted by Arpan Bannery and Chelsea Harding," Decker confirmed, noting that merchants can configure both the shopper eligibility criteria and discount percentage through a straightforward interface.
The feature's introduction addresses a long-standing need in the e-commerce sector. First-order discounts have traditionally been a powerful tool for customer acquisition, with many direct-to-consumer brands relying heavily on initial purchase incentives to attract new buyers. However, implementing such offers through Google's advertising platform previously required more complex workarounds.
The new discount type integrates directly with existing Google Shopping campaigns and Performance Max campaigns that include Shopping inventory. When configuring the promotion, merchants must:
- Select "First order" under the Promotion conditions section
- Specify the discount percentage
- Optionally set purchase minimums or maximum discount amounts
- Create a promotion title and tracking ID
- Define any additional eligibility requirements
Early adopters report that the feature shows discount information directly in Shopping ads, potentially improving click-through rates by highlighting the savings opportunity to new customers. The system automatically validates first-time buyer status, eliminating the need for merchants to implement their own verification processes.
According to digital marketing professionals discussing the feature on Marketing O'Clock, the introduction of native first-order discounts could significantly impact e-commerce customer acquisition strategies. The functionality arrives as retailers face increasing pressure to acquire new customers efficiently while maintaining profitability.
The timing of the release, coming after the peak Black Friday and Cyber Monday shopping period, suggests Google's focus on providing tools that can drive sustained growth throughout the year rather than just during major shopping events.
Some early users, posting on professional networks, indicate that the feature could be particularly valuable for:
- Direct-to-consumer brands seeking to expand their customer base
- Retailers entering new market segments
- Businesses with strong customer lifetime value metrics who can justify aggressive acquisition costs
- Companies competing against established marketplace sellers
While the feature offers clear benefits, marketing professionals recommend carefully considering discount levels and terms. The ability to set maximum discount amounts helps protect against excessive promotion costs, while purchase minimums can ensure promotional orders remain profitable.
Saim, an early adopter of the feature, confirmed its availability in early December, noting successful implementation across multiple client accounts by December 5th. This early feedback suggests robust functionality and straightforward implementation processes.
Google's introduction of first-order discounts represents part of a broader evolution in its e-commerce capabilities. The feature joins recent Merchant Center additions including enhanced product feeds, automated item updates, and expanded promotion types, reflecting Google's continued investment in supporting retail advertising capabilities.
For merchants considering implementation, the feature is now available globally within Google Merchant Center. Those interested in utilizing the functionality should ensure their Merchant Center accounts are properly configured and their promotion feed meets Google's updated technical requirements.