---
title: "Local inventory ads for online stores with physical shops"
author: "Performetic Ekibi"
url: "https://www.performetic.com/en/blog/local-inventory-ads-for-retailers-with-stores"
published: "2026-01-08T08:00:00.000Z"
updated: "2026-10-05T02:41:49.499Z"
---

# Local inventory ads for online stores with physical shops

> Local inventory ads show products in stock at your physical stores, with price and availability, to nearby shoppers searching on Google. To run them you need a store customers can visit and buy from, a Merchant Center account, a linked Google Business Profile and store-level inventory data. Paired with free local listings, they cover both paid and free local visibility.

## How can online stores with physical shops use local inventory ads?

Local inventory ads show nearby Google searchers the products in stock at your physical stores, along with price. If you sell both online and in stores, they connect online searches to store visits. Setup requires Merchant Center, a linked Google Business Profile, store-level inventory data and a suitable product page experience.

This guide covers what local inventory ads and free local listings are, the requirements, setup steps and how to judge results.

## What are local inventory ads and free local listings?

Google can show your in-store products in two ways:

- **Local inventory ads:** paid ads that show products in stock at your stores, with prices, to nearby shoppers searching on Google.
- **Free local listings:** according to Google's developer documentation, they let your in-store products appear in free listings across Google properties.

Both run on the same Merchant Center setup and the same store inventory data, so setting up both takes little extra effort. If you already use free listings for online products, the logic is similar, as we explain in our [guide to free product listings on Google](/en/blog/google-free-product-listings). The difference is that local data is per store.

## Which brands benefit most from local inventory ads?

Not every retailer with stores gains equally. Local inventory ads stand out when:

- **Shoppers need the item now.** For same-day needs (gifts, spare parts, seasonal items), seeing in-store stock is a strong reason to buy.
- **Products are bought after trying or seeing them.** In categories like footwear, furniture and eyewear, shoppers want to confirm stock before making the trip.
- **Shipping is slow or expensive.** For large or heavy products, picking up in store is an attractive alternative.

## What do you need to run local inventory ads?

These features are for retailers that also sell in physical stores; Google calls these "local products". Technically you need:

| Requirement | Purpose |
|---|---|
| Google Merchant Center account | Where your product data is sent to Google |
| Google Business Profile | The record of your store locations on Google |
| Business Profile linked to Merchant Center | Makes your stores available in Merchant Center |
| Primary product data | Core details such as title, image and ID |
| Local inventory data | Store code, availability and optional store price |
| Product page experience | The page shoppers see after clicking |

Google's developer documentation stresses one point: local inventory data is supplemental and does not replace primary product data. You first upload products to a primary data source, then attach store-level availability to those products. If your Merchant Center account has disapprovals, fix them first using our [Merchant Center guide](/en/blog/google-merchant-center-setup-disapprovals).

## What product page options are there?

When a shopper clicks a local inventory ad, they land on a product page. Google's developer documentation defines three options:

| Option | When it fits |
|---|---|
| Merchant-hosted local storefront, basic | Your product pages show in-store availability |
| Merchant-hosted local storefront, full | You have store-specific product pages with availability and price |
| Google-hosted local storefront | Your product pages do not show in-store availability |

With the Google-hosted option you must complete an inventory verification process to finish onboarding. With merchant-hosted options you provide a page URL showing in-stock or pickup information, which Google reviews. According to Google, these enrollments trigger manual reviews that usually take a couple of hours to a couple of days.

If your site can show store-level stock, a merchant-hosted storefront usually works better because shoppers stay on your site. If not, the Google-hosted option is a fast way to start.

## How do you set up local inventory ads step by step?

1. **Verify your stores in Business Profile.** Addresses, opening hours and store codes must be current. Store codes are what match inventory data to the right store.
2. **Link Business Profile to Merchant Center.** This makes your stores visible in Merchant Center.
3. **Turn on local inventory ads and free local listings.** These programs are configured per country, so if you have stores in several countries you set each one up separately.
4. **Choose your product page experience.** Pick one of the three options above and complete inventory verification if needed.
5. **Send store inventory data.** For each store: product ID, store code and availability, plus store price if it differs from online. Update it at regular intervals.
6. **Set up campaigns in Google Ads.** According to the Google Ads API documentation, Shopping campaigns have an option to show ads for products sold in local stores; it is on by default when inventory is present and can be filtered with listing groups. For other feed-based campaign types such as Performance Max, check how local products serve in your campaign settings.
7. **Monitor update frequency.** An ad showing "in stock" for an item that sold out in store is the fastest way to lose a customer who made the trip.

## How do you keep store inventory data accurate?

Local inventory ads live or die on data accuracy. The most common problems are:

- **Store code mismatches.** Codes in your stock system must match the codes in Business Profile.
- **Product ID mismatches.** Local inventory rows must use the same ID as the primary product.
- **Update lag.** Know how often data flows from your point-of-sale system to Merchant Center. For fast sellers, lag means wrong availability.
- **Low stock risk.** A last unit on the shelf may already be sold or damaged on display. Some retailers send very low stock as "out of stock".

Example: a footwear brand with three stores exports a stock file from its point-of-sale system every night. When weekend promotions lead to complaints about fast-selling models, it adds intraday updates for those models and marks sizes with fewer than two pairs in store as out of stock.

## How do you measure local inventory ad results?

Store sales are harder to measure than online conversions because the purchase happens at the till. Combine several methods:

- Track clicks and impressions on local products in Google Ads and Merchant Center reports.
- Compare store sales for advertised products with campaigns on and off.
- Ask store staff to check whether customers saw the product on Google, or isolate impact with a store offer shown only in the ads.
- Report online and store sales together; local inventory ads sometimes lift online sales too.

## Key takeaways

- Local inventory ads show in-stock store products to nearby shoppers on Google; free local listings show them on free surfaces.
- You need a physical store, Merchant Center, a linked Business Profile, primary product data and store-level inventory data.
- Choose a merchant-hosted or Google-hosted local storefront for the click-through experience.
- With store inventory in place, local products are on by default in Shopping campaigns; check settings for other campaign types.
- Fresh, accurate stock data is the foundation of both results and customer experience.

If you want to explore how online ads can drive more traffic to your stores, the Performetic team can review your setup in a [free growth analysis](/en/contact).

## FAQ

### Do I need a physical store for local inventory ads?

Yes. Local inventory ads and free local listings are built for products sold in physical stores. Your stores need to be listed in Google Business Profile, and that profile must be linked to your Merchant Center account. They are not an option for online-only businesses.

### What does local inventory data include?

For each product and store, the core fields are product ID, store code and availability, plus store price if it differs from your online price. This data supplements your primary product data rather than replacing it. Product IDs must match your primary data and store codes must match Business Profile.

### Which campaigns show local inventory ads?

According to the Google Ads API documentation, Shopping campaigns include an option to advertise products sold in local stores, which is on by default when store inventory is present and can be filtered with listing groups. For other feed-based campaigns such as Performance Max, check local product settings in the campaign.

### What if my website does not show store availability?

You can use the Google-hosted local storefront. Shoppers who click your ad see store availability on a page hosted by Google. To complete onboarding with this option, you need to pass Google's inventory verification process.

## Sources

- [Overview of Inventories sub-API (Merchant API, Google for Developers)](https://developers.google.com/merchant/api/guides/inventories/overview)
- [Create a Shopping campaign (Google Ads API, Google for Developers)](https://developers.google.com/google-ads/api/docs/shopping-ads/create-campaign)
- [Manage Omnichannel Settings (Merchant API, Google for Developers)](https://developers.google.com/merchant/api/guides/accounts/manage-omnichannel-settings)
- [Add in-store information to local products (Merchant API, Google for Developers)](https://developers.google.com/merchant/api/guides/inventories/add-local-inventory)