Paypal Has Some Competition: Google Checkout
Some big news rolled out today. It looks like Google has finally gotten around to releasing their payment product. It’s a pretty interesting one too, that I think can be leveraged by eBay sellers as well as most other eCommerce stores.
The standard rate for Checkout merchants will be 2% of the sale plus 20 cents – compare that to Paypal’s standard rate of 30 cents plus 2.9% of the transaction. Google is hoping that this will encourage people to buy from smaller merchants, and give them more access to information on both the buyer and seller.
What’s even better is that Google will waive some or all of the transaction fees for companies that buy advertising from it. What is more, for every $1 a company spends on search advertising, Google will waive the fees on $10 worth of purchases. Factoring in the 2 percent fee, that represents a rebate of at least 20 percent of advertising spending. (Source: NY Times)
So, as an eBay merchant I doubt eBay and Yahoo will play kindly with Google. However, if you have an off-eBay store, you can now offer an additional way to pay, and also cover a lot of your Google AdWords advertising costs. It’s a great deal for online merchants, something worth testing.
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