Friday, June 30, 2006

PAYMENTS://Market expansion will beat Google Checkout's take of PayPal's share

Google strategy regarding the new Checkout is pretty straightforward:
  • Enhance the shopping experience for users, even if they already have PayPal in many cases.
  • Make AdWords more attractive for advertisers. For every $1 spent on keywords, Google will wave fees on $10 of purchases. Google is actually subsidizing Checkout (2% + 20c is less than 1.95% + 30c that credit card companies charge in many cases), so it doesn't aim to create a new revenue source. It's all about volume (compare Amazon.com's free shipping strategy), and about prices as well (higher demand for keywords).

Will Checkout beat PayPal, which actually is a revenue source for eBay? I don't think so.
  • I think the market will expand. There is room for both.
  • Advertisers will not offer Checkout exclusively on their sites. That would be a dumb thing to do, as it would force users to sign up to something totally new.
  • The Yahoo! deal will allow eBay to match Google's Checkout. Yahoo! will push PayPal and Yahoo! Search Marketing could subsidize it. (AdWords + Checkout = YSM + PayPal.)

2 comments:

ASIAN ELECTRONICS COMPANY LTD. said...

ASIAN ELECTRONICS COMPANY LTD.

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E-mail: whitewaterphones@yahoo.com

MIS. RITA MINA.
SALES AND MARKETING DEPARTMENT MANAGER.

ASIAN ELECTRONICS COMPANY LTD.
THANK YOU.

asian said...

ASIAN ELECTRONICS COMPANY LTD.

E-mail: whitewaterphones@yahoo.com

MIS. RITA MINA.
SALES AND MARKETING DEPARTMENT MANAGER.


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ASIAN ELECTRONICS COMPANY LTD.

E-mail: whitewaterphones@yahoo.com

MIS. RITA MINA.
SALES AND MARKETING DEPARTMENT MANAGER.