G-mail Bowls A Googly

Even in the age of Twitter posts and Instagram photos, e-mail is still the way marketers reach the hearts – and wallets – of consumers. And that is why retailers are up in arms about Google’s latest tweak to Gmail. 

Google has gradually introduced a new inbox with an assortment of folders for different types of messages, including a main inbox and ones for social networking alerts, e-commerce promotions, updates from businesses like banks. For Google, it’s another moneymaking avenue (note the ads that look like emails that now appear at the top of the promotions folder). Also, the company says it wants to fix email overload. 

Yet any tiny change that the Internet giant makes has cascading effects for businesses across the Web. Online retailers don’t like this change as a person might log on to  Gmail 20 times a day, and look at promotions once a week. 

Retailers, who have a love-hate relationship with Google, say this is the latest tussle in an increasingly contentious union. Google, they say, has effectively classified their messages as junk mail by shunting them to an inbox ghetto.

 It is too early to tell exactly how Gmail users treat the new tabs. Although retailers fear that fewer customers are clicking on their sites — because they didn’t read the email promising 40% off — so far, there has been only a small effect. The rate at which consumers open e-commerce emails has declined about 1% since it was introduced, according to three services that manage mass emails. 

Another change, though, might be more worrisome for e-commerce companies. While shoppers typically click on promotions within hours of receiving an email on other services like Yahoo and Outlook, Gmail users are waiting more than 24 hours.