How to Create Labels in Google Merchant Center: A Step-by-Step Guide for Sellers
Behind every successful Google Shopping campaign is a well-organized Google Merchant product feed. One of the most practical ways to boost effectiveness is by leveraging labels in the Google Merchant Center (GMC). Labels allow sellers to categorize their products, making campaign management easier and ad performance more targeted.
Whether you’re an eCommerce entrepreneur or a seasoned marketing manager, this guide will walk you through everything you need to know to create and optimize Google Merchant Center labels. We’ll break it down step by step and share the best practices to help you fine-tune your Google Shopping feed strategy.
By the end, you’ll understand how to make your shopping feeds work smarter, not harder!
What Are Labels in Google Merchant Center?
Labels, also called “custom labels,” are additional fields in your Google Merchant product feed that you as a seller, can assign to products. These labels act like tags, helping you segment your inventory into distinct categories for better campaign performance.
Unlike standard product attributes (like title, description, or price), labels are for internal use only. This means they don’t appear in your ads or affect how your products are displayed to shoppers.
Examples of Labels You Can Use:
- Seasonality: “Winter collection,” “Summer sale,” or “Holiday gifts.”
- Performance: “Best sellers,” “Low-traffic items.”
- Pricing: “Under $50,” “Premium products.”
- Inventory status: “New arrivals,” “Clearance.”
These labels allow you to better control how you structure ad groups and bidding strategies in your campaigns.
Why Use Labels in Google Merchant Center?
Using labels isn’t just a nice-to-have—it can significantly impact your Google Shopping product feed performance. Here’s why you should start tagging your products:
1. Enhanced Ad Targeting
With labels, you can tailor campaigns for specific product categories (e.g., promotions for “Best Sellers”) and focus on what matters most to your customers.
2. Smarter Bidding Strategies
Adjust your bids based on the product type. For example, you can increase CPC bids for high-margin products and lower bids for budget-friendly items.
3. Simplified Campaign Management
Save precious time by organizing your Google merchant feeds effectively. Labels act as shortcuts for managing large inventories without reworking the entire catalog.
4. Improved Insights
Gain better visibility into how specific product groups are performing, enabling data-driven decisions to maximize your ROI.
Using labels strategically can truly supercharge any Google Shopping feed strategy while making campaign management less overwhelming.
Step-by-Step Guide to Creating Labels in Google Merchant Center
Setting up labels in your Google Merchant product feed is easier than you think. Here’s a straightforward process to get started:
Step 1: Access Your Google Merchant Center Account
Log in to your Google Merchant Center account. This is your base of operations for managing everything in your shopping feeds.
Step 2: Prepare Your Product Feed
Make sure your existing product listings are neat, complete, and correctly formatted. If you’re managing products via a Google Merchant product feed, you’ll need access to the file.
Most product feeds are in CSV, XML, or Google Sheets format.
Step 3: Add a Custom Label Field
To integrate labels into your feed:
- Open your product feed configuration (e.g., via Google Sheets or CSV).
- Add a new column for “Custom Label” (e.g.,
custom_label_0,custom_label_1).
Step 4: Define Your Labels
For each product, fill in the “Custom Label” field. Here are some ideas:
- Seasonal products = “Winter”
- Slow-moving inventory = “Discount”
- High-margin items = “Premium”
Google allows up to five custom labels per product (from custom_label_0 to custom_label_4), so use these strategically.
Step 5: Upload Your Updated Feed
Once you’ve added the custom labels, upload the revised product feed back into the Google Merchant Center:
- Click “Products” on the left-hand menu.
- Select “Feeds” and then upload your updated file.
Step 6: Apply Labels in Google Ads
Now it’s time to use those labels in your ad campaigns. Open Google Ads, and apply filters or adjust settings based on your custom labels.
For instance:
- Create ad groups for “High-margin items.”
- Run seasonal ads for “Winter collection” products.
Once applied, labels allow for precision targeting and tailored strategies.
Pro tip 💡 Make sure to review your updates in your Google Shopping feed and verify there are no errors flagged by Google Merchant Center.
Best Practices for Google Merchant Center Labels
Now that you’ve set up your labels, here are some tips to make the most out of them:
1. Plan Your Labels Strategically
Don’t create random categories. Labels should align with your campaign goals and business objectives. Think of them as a way to prioritize or group your inventory.
2. Keep It Simple
You don’t need to assign dozens of categories. Focus on 5–10 significant labels that simplify management and deliver actionable insights.
3. Audit Regularly
Are your “Best Sellers” still performing well? Is your “Holiday Promo” label still relevant in February? Revisit your labels regularly and update them as your campaigns evolve.
4. Test Label Effectiveness
Use A/B testing to measure whether product groups with labels perform better with targeted campaigns than generic ones. For instance, compare the ROI on high-bid “Premium Products” versus regular listings.
5. Combine Labels With Other Strategies
While labels are great, combining them with tools like performance tracking or automated rules in Google Ads can amplify results.
Optimize Your Google Shopping Campaigns Today
Adding labels to your Google merchant feeds might seem like a small tweak, but it can have a massive impact on your business. By using labels strategically, you streamline your shopping feeds, improve campaign targeting, and maximize your ad spend ROI.
Data-driven decisions are the backbone of success in any Google Shopping campaign. Start customizing and optimizing your Google Shopping product feed today—your profits will thank you.
Ready to take your Google Shopping strategy to the next level? Try these steps and unlock the full potential of your ads.