Posted by jonathan at 1:32pm EST on 01/05/2007
Google is still trying to push Checkout on consumers. Let’s do a little recap of how Checkout is actually doing:
July 6th 2006: eBay bans Google Checkout
July 19th 2006: Google tries to lure AdWords Advertisers to use Checkout
August 10th 2006: Free T-Shirts for using Checkout
October 3rd 2006: Google offers free money ($10 & $30) for using Checkout
October 5th 2006: Google releases easy integration for osCommerce and Zen Cart
November 8th 2006: Free order processing for the holidays
November 21st 2006: More free cash for using Checkout
December 6th 2006: Free order processing for the whole year? Sure!
December 12th 2006: Checkout has a few hiccups…delays orders
So let us look at the overview of how Checkout has been doing. Initially it was released and eBay quickly bans the system from being used within eBay so it doesn’t compete with eBay’s own PayPal. Then the Checkout team goes crazy by offering all this free cash to consumers just for using the system. I’ll be frank with you, I think this is stupid of Google. Google is trying to compete against 2CO.com (2Checkout.com) and PayPal but they really don’t have anything going for them besides the fact that they are Google.
Google does indeed have the userbase they need in order to even remotely become a player in the industry of payment processing, but that isn’t enough it seems. Google has been chasing after consumers for Checkout and it just keeps failing. Consumers are ending up with all this free cash and Google is left with….well…nothing. Free order processing for all of 2007 so they aren’t making any money on order processing…where is the revenue? No where. I believe Google Checkout is losing big time right now.
Google needs to come up with a bigger strategy than just offering discounts for order processing or free money to consumers. Something much, much bigger.