Wednesday, December 06, 2006

Google Checkout Revisited!

Google has extended their free transaction program for Google Checkout. Sellers using Google Checkout to process sales will pay no transaction fees through the end of 2007.

This reminds me of the “Browser Wars” between Microsoft Explorer and Netscape in the 90's. Microsoft gave away Explorer in an effort to take market share from Netscape and was successful in becoming the dominant browser. It looks like Google is taking a page from the same book, putting tremendous pressure on eBay's PayPal.

If PayPal's growth is slowed by this approach eBay will be in trouble. PayPal is the business segment responsible for eBay's growth at this point.

It wouldn't surprise me if this added pressure from Google ended up with eBay and Google making an agreement. Possibly adding PayPal to Google Checkout and Google Checkout to eBay.

Follow this link to see what some eBay sellers are saying about this extended promotion from Google.

2 comments:

Frank Ross said...

Well it is good news to me. I have a fairly new drop ship site that's operating on a shoe string. I have been holding back getting a full blown merchant account, so I'm using PayPal. I may switch to Google Checkout. Perhaps there is a "coolness" and trust factor but I have not seen any real evidence that Google Checkout increases revenue, have you?

Randy Smythe said...

Frank, I don't think Google checkout will increase revenue just yet but it is a choice worth offering to your customers and believe me the free processing will be beneficial to your bottom line.