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Google vs. eBay/PayPal

That's Unpossible! writes "Google has today made a small announcement on their blog which could shake up the landscape of buying things online : they are going to start allowing certain parties to sell items through Google Base, which people can buy using credit cards linked to their Google Account. According to another blog post, Google already accepts payments in this fashion for Google Video, Google Earth, Google Store, etc. How long until Google Base is directly competing with eBay? The framework is now in place."

33 of 197 comments (clear)

  1. This is nice but... by Acid-Duck · · Score: 4, Insightful

    Don't forget that eBay already has a HUGE customer-base established, in addition to having some odd categories which I never thought would get any attention but looking at the listings there's quite a few items already :P Not to mention that thanks to goldenpalace's advertisement stunts (ie: buying odd objects off eBay for exorbitent prices) eBay already got a pretty good spotlight on TV. Two things to keep in mind here:

    - When buying the shop that has lots of selection will hold lower prices
    - As a seller, I'm looking to get maximum exposure when I sell something.

    Those two factors, I believe, will give google a pretty good run.

    Erik

    1. Re:This is nice but... by bigman2003 · · Score: 5, Interesting

      A few years ago, there were many announcements about Microsoft getting into different businesses:

      Microsoft getting into the business financial software space
      Microsoft getting into XXXX space

      And the world thought the sky was falling, and Microsoft was going to take over everything and nobody else had a chance.

      Ended up not being true. Away from their core businesses, Microsoft ended up being 'just another competitor'.

      Will Google get away from their core, and have they same thing happen? Can the magic last?

      eBay is very well entrenched...

      --
      No reason to lie.
    2. Re:This is nice but... by Alex+P+Keaton+in+da · · Score: 2, Interesting

      Yes, but keep in mind that the reason people use Ebay isn't because it is the best as far as service/experience, but because it is the biggest. You can try and sell your stuff on one of the other auction sites, but no one will see it.
      I would welcome a service where I could sell my stuff that was better than ebay. Keep in mind that there are a ton of services (be it a kitchen remodeling company or a restaurant in your town) that are ripe to be smashed by someone who comes in with a new business and provides better service...

      --
      And All I Ask is a Tall Ship And a Star to Steer Her By
    3. Re:This is nice but... by Paradise+Pete · · Score: 2, Interesting

      Sure, but ebay is pretty crappy. One big weakness (among many) is its search capabilities. I'm guessing Google could do that part a bit better.

    4. Re:This is nice but... by stevesliva · · Score: 3, Interesting
      Google's trying to become the next Microsoft by opening up their APIs to web developers for free, and more importantly, ASAP. They want to be the web platform the same way that MS became the desktop platform by providing a number of bundled applications and cheap SDKs. The larger the base of established sites using Google services, the better for them. Google's differentiator seems to be providing the content along with the services. Its competitors offer the content and services ala carte.

      In five years will google APIs be as ingrained in your average website as windows is ingrained in your average desktop application? Google will continue to provide the framework for that to happen, ASAP. Think of it as Windows 3.0, with 3.1 coming soon. Unless wikipedia suddenly morphs into free maps and free storefronts and free classifieds and free file hosting and free email and free search, I don't see an open alternative to Google's free--as in beer-- content. You can mock the betas the same way people mocked early versions of Windows, but have no doubt that now as then, developers will use what is cheap and easy and available. It doesn't matter if it's coming out of Mountain View or Redmond as long as it pays the rent. Moral qualms are for Stallman.

      --
      Who do you get to be an expert to tell you something's not obvious? The least insightful person you can find? -J Roberts
    5. Re:This is nice but... by vux984 · · Score: 2, Insightful

      Sure, but ebay is pretty crappy

      A solid competitor, or at least the threat of one, might light the fire under ebay, and make *it* a better place.

    6. Re:This is nice but... by slavemowgli · · Score: 4, Insightful

      eBay *is* very well-entrenched, that much is true, but eBay also sucks big time - they're expensive, unpleasant to work with, and will bow to corporate pressure (deleting your auctions because the RIAA/MPAA/BSA/... demand it without even looking at them etc). The *only* thing eBay has going for itself is the amount of users (and thus auctions).

      Of course, this doesn't mean that eBay will go bankrupt when Google becomes a real competitor; there's also the possibility that they will improve their service and lower their fees. Either outcome is fine with me; the problem is not so much eBay as such (i.e., they're not inherently more evil than other companies), it's the problem that they have no competition.

      --
      quidquid latine dictum sit altum videtur.
  2. I assume by Michalson · · Score: 4, Insightful

    That the service is going to be a Beta?

  3. whats the framework? by cycledance · · Score: 2, Insightful

    the internet? the google name? id love a big competitor to ebay...but its not THAT easy...

  4. why is ebay singled out? by DarkClown · · Score: 3, Interesting

    Failing to see how ebay is specifically singled out here.
    It does give folks another avenue that the ebay 'buy-it-now' provides, but there isn't anything within the google framework that does the auction thing.
    I mean, amazon provides the flea market thing as well...

    1. Re:why is ebay singled out? by Acid-Duck · · Score: 4, Informative

      If you've looked at eBay, there is more then just the buy-it-now auction type. There are multiple auction types depending on what type of items you're selling. As far as eBay being singled out, I admit there are other auction sites which are probably doing as good, but none of them are as well known to common luser as eBay. Now think about searchh engines... Doesn't Google feel that same type of way? even ppl who don't own computers know what google is. That's called visibility. Google going in the business of running an auction site, it has alot of visibility compared to other auction sites competing with eBay, not because it's better established (it's not even open yet, no customer-base) but because they're already getting lots of visits at their page b/c of their search engine services.

      The conclusion is that you can offer the best product in the world but if you have no visibility to your target audience, you won't sell.

      Erik

  5. Re:I, for one (seriously) by bigman2003 · · Score: 4, Interesting

    I got screwed over by PayPal.

    I sold something on eBay, and opted to print out a UPS label, and pay for the shipping directly through their PayPal system. Started the process and everything was fine, I paid for it, and only needed to print the label out.

    Crap! I didn't have the right kind of paper (I wanted to use label material) so I had to go find some in my wife's office.

    By the time I got back, my session had timed out. I went back to my original eBay item, and followed the same process. Thinking that it would register as the same shipping/payment. Wrong, it charged me again.

    Okay...fine, I'll just cancel the first one.

    Can't cancel a shipping payment until UPS receives the electronic statement from PayPal. Okay, I'll check back the next day.

    Whoops- can't cancel a shipping payment after 24 hours have passed.

    eBay customer service did ONE thing for me when I contacted them about this. They confirmed that I was screwed.

    $46 down the drain because their sessions time out too quickly. Fuck them...

    --
    No reason to lie.
  6. Competition is a Good Thing by tezza · · Score: 4, Insightful
    The old arguments for Competition in the Marketplace can come out.

    * Drive to innovate
    * Prices closer to the actual cost of the service
    * External Innovators can become suppliers as the companies get creative to win market share.

    --
    [% slash_sig_val.text %]
  7. This is a good thing by Sima · · Score: 3, Insightful

    Considering how unresponsive Paypal is and how much of a maze Ebay tries to be, when you try to contact their customer support, this can only be a good thing.

    Maybe this move will force them to stop acting so arrogantly towards us, their customers. And try to provide some actual customer support.

  8. All your base is overly broad by CGP314 · · Score: 2, Interesting

    I don't quite get what google base is. From reading the FAQ this is part of google's plan to organize all the worlds information -- but sometime we need a bit more structure than that. I sell my photos on ebay and would love to be able to use a different service as payments to ebay are death by 1,000 cuts. But, are people really going to look for photos of London in the same place they'd try and find recipes and free web hosting?

    1. Re:All your base is overly broad by generic-man · · Score: 2, Insightful

      If I want to buy something, Google web search is useless ("Find prices and read reviews for WHATEVER YOU SEARCHED FOR" 1,000 times over, each page exactly the same as the last) and Froogle is sometimes helpful. Google claims not to make any money off Froogle though. If Google started handling payments they'd have a piece of the action. Yahoo! has had storefronts for years, eBay has a huge customer base already, and PayPal (since acquired by eBay) handles money for any sort of person-to-person purchase -- auction or otherwise.

      --
      For more information, click here.
  9. Attract sellers by HangingChad · · Score: 3, Insightful
    How long until Google Base is directly competing with eBay? The framework is now in place.

    If Google treats sellers well, they'll be jumping ship from eBay in packs. I'm guessing eBay will lighten up on their sellers and the new equilibrium will be sellers using both services.

    Competition is a good thing. More outlets for sellers is more business, also a good thing. I'd use Google before Amazon.

    --
    That's our life, the big wheel of shit. - The Fat Man, Blue Tango Salvage
  10. PayPal have dug their own grave... by Manip · · Score: 3, Interesting

    PayPal has lost so much goodwill, and annoying so many people that frankly I think people would move to a replacement if it was half-decent. Google need to look at what PayPal did right (simplicity, flexible, secure) and what PayPal did wrong (bad policy, account locking, 'random' charge-backs, poor complaints system, in escrow service).

    I must admit, however, that having my personal information (name, CC, address) linked to my search queries seems like a profoundly bad idea... Even if that is still technically possible with my ISP I don't think they care enough, or it is in their best interests to do so. Google on the other hand...

    1. Re:PayPal have dug their own grave... by ScrewMaster · · Score: 2, Interesting

      I just don't trust excessively concentrated anything. Power, money ... information. If it can be collected and stored in can be accessed, and since I, as a consumer, have zero control over where that information ends up, it bothers me. Sure, I suspect Google will probably have better security in place than, say, Choicepoint ... but it's still a risk that people should think twice about.

      --
      The higher the technology, the sharper that two-edged sword.
  11. well that'd be a good start by Danzigism · · Score: 2, Insightful
    somebody needs to smash ebay thats for sure.. its a wonderful thing, but they've been screwing their customers for far too long.. prices have increased, making it nearly impossible to make a profit.. I sell historical documents, and business has been gradually decreasing over the past 4 years.. Autographs in particular, you could buy a autographed photos from hollywood actors at real auctions for anywhere between $100-$5,000... The same photo you bought for $100, could be found on ebay for $10... and why is that?? Because the seller's need to drop their prices that low, because they think nobody's buying their stuff.. When in actuality, Ebay is very very very inconsistent when it comes to sales.. If you get a nice Marlon Brando signed photo, and you post it up for auction on Ebay, how do you expect every die-hard Marlon Brando fan to be on Ebay at that particular point in time?? They won't be.. And thats the problem..

    in my personal opinion, Ebay has ruined the excitement from real live auctions.. but Google on the other hand.. I have a feeling that one day, Google will be one of the first things all people do in the morning.. like checking your email or the news.. a daily process.. And what if they started doing auctions?? Well just imagine having Google Alerts for auctions.. You could have a message in your Inbox saying, "Hey, some guy just put up a Marlon Brando signed photograph.. Click here to BID now".. and my problem would be solved...

    --
    *plays the Apogee theme song music*
  12. An alternative to PayPal would be very welcome by Elad+Alon · · Score: 2, Informative

    Does anyone have any idea why Paypal wouldn't let me reset my account by e-mailing them scans of certain documents, requiring me to fax it to them instead? This is one reason why I may be switching to GooglePay - I'm not opening a new e-mail account so I can have a new PayPal account. I didn't forget my PayPal password, I just couldn't remember which of my many passwords it was, and I got locked out before I could guess the right one. Another e-mail account, another PayPal account - this will just get worse. So I'm kissing PayPal goodbye. Hey, I was a good customer for a long time, why wouldn't they just let me open a second account with the same e-mail? Only two accounts, clean history on the first - what's the problem? Also, their call center... Having to say out loud "yes/no" to a machine that somehow fails to get it, instead of the good tried-and-true method of pressing a button - what's the big idea? Couldn't you at least provide both options? Man, that thing hung up on me about five times, and they were all international calls. Also, I don't mind them outsourcing their call center to India, not being an American myself, but only when they can find people with clear enough accents, as far as their average customer is concerned. International call to the USA, then through not-broad-enough-band VoIP to India, then an unfamiliar accent... uncomfortable. (I actually love the Indian accent, but it's hard for me to understand what's being said.)

    --
    News for merdes. Shit that matters.
    Ask me about my sig.
  13. countdown to the Googopoly: by Hosiah · · Score: 4, Funny
    Omens that have yet to pass:

    Google Dollars: trade one-to-one with US currency a la Disney Dollars
    Google History: send actual wireless webcams back in time and space to search history
    Google Genes: pick your baby's DNA from Google's wide base of genetic data. Google Cyber-Implants: when you're *really* assimilated! Have the power of Google searches on tap in your own brain. Win every trivia game show. Ace every test. View porn just by thinking about it.

  14. Poppycock by altheusthethief · · Score: 4, Interesting

    eBay is of the main advertisers on Google, they bought over 600,000 keywords last year alone. eBay doesnt have enough static pages for Google to index it properly so this is a nesscessary evil. Without eBay's support of Google, you're taking a loss of about 10M+. That's a pretty big hand to bite.

    eBay has traditionally always had competition, and if anything this only helped it grow even larger. Look at Yahoo and Amazon, they couldn't even take it. The fact is that eBay is a differenet company now, than before. It's shifted it's focus from being an "auction" site, to being a marketplace.

    Google is a great speculator, and it really has to be with the way it's stock is. A tighter integration of eBay and Google would be an intelligent move, eBay is a proven company, with rising stock for the last 10 years, and continuing to post profits well above expectations. PayPal, like it or not, is still the most reliable and easiest way to pay for things, and I'm sorry, but I've used it for well over 100 transactions and unlike my credit card and bank account, I dont pay an annual fees as a customer, and as a seller, it's a lot cheaper than the cost of getting a merchant account.

    The point is this, eBay stands to lose ground in the market it's saturated. Google will have to figure out how to deal with fraud, customer/seller debate and at the same time promote it's product in a non-competitive manner such that it doesn't lose it's main advertiser.

    Short of that, if Google decides to lock horns with eBay, I'm pretty sure you'll see eBay take a cut in it's stock to retain and regrow it's own markets. Competition is healthy, but I really doubt that this is anything more than posturing.

    On an aside, pick a popular product, Froogle it, most of the vendors I've dealt with have had huge problems, lie or deliberately mislead me on price. Now add 10 million amateurs, wannabes, and fraudsters, and tell me that I can reasonably expect a better experience than eBay.

    1. Re:Poppycock by Excelsior · · Score: 3, Interesting

      eBay is of the main advertisers on Google, they bought over 600,000 keywords last year alone. eBay doesnt have enough static pages for Google to index it properly so this is a nesscessary evil. Without eBay's support of Google, you're taking a loss of about 10M+. That's a pretty big hand to bite.

      There are two problems with your logic:

      1) There's a reason eBay can spend 10M+ on Google Adwords. It makes far, far more. In 2004, eBay had 3.3 billion in sales, and 780M in profits! Google needs less than 2% of the market to make up for the loss of advertising. Google has the brand awareness to easily grab 2% of that market.

      2) It would assume eBay can afford to stop advertising with Google to get revenge upon Google. They can't. They would be shooting themselves in the foot, and giving Google Base more marketshare and more profits (see 1).

      I think its more likely you'll see Google Base pages with Adword advertisements for eBay in the margin.

  15. Well, mostly good... by ursabear · · Score: 5, Interesting

    PayPal and eBay are both very successful venues and means. They've become (at least, in the US) universally known and serve as the Kleenex tissue of online payments and the Styrofoam foam of online buy/sell/auction, respectively.

    I do believe that it would be nice to get some real competition going for these companies - and perhaps Google has the chutzpah to pull it off (not to mention the cash). I, for one, would love to see some new ideas in the auction/sell/pay space. It could also keep the costs of these services relatively in check, as well.

    It costs a very large percentage of a sale to sell something on eBay (that is, unless you are a super-seller who can get away with selling an item for .99 with $19.99 shipping {nudge, nudge}) and accept payment through PayPal at this point. It would be nice to see an alternative.

  16. Mottos by Centurix · · Score: 3, Funny

    Google has "Do no evil"

    pfft, PayPal has nothing, except your money.

    --
    Task Mangler
  17. Re:Risky move by bubkus_jones · · Score: 2, Insightful

    Shut ebay down because of illegitimate auctions? What's next, shutting down the internet because it helps terrorists build weapons?

    No, they can not and will not do that. There is too much of a legitimate userbase for ebay, and too many people around the world (because, as you should know, ebay is available in many countries as a subsite tailored to that specific country, featuring auctions by people in those countries) who use it daily.

    Besides, if they did shut it down, another would pop up to take it's place, much like the P2P programs/networks.

  18. Ebay is a monopoly. by queazocotal · · Score: 2, Interesting
    At the moment, ebay have essentially no competition.

    This does not make for a healthy marketplace.

    There is of course competition between sellers, but if ebay raises prices, makes it impossible to find items by completely eliminating categories, or decides that it'd rather heavily weight the market towards those who pay for featured ads, the users have no comeback, other than to not use ebay.

    They can't just go to the 2nd highest auction site in many cases, as there effectively isn't one.

    Competition would greatly help users.

  19. Re:Bullshit FUD by jasonditz · · Score: 2, Insightful

    there's no more legal basis for shutting eBay down because of that than there is shutting down a public school because some of the kids sell drugs in the hallways, or shutting down a Walgreens because the guy in the Santa Claus suit out front isn't really from the Salvation Army.

  20. Re:I, for one (seriously) by TheLink · · Score: 2, Informative

    There are very good reasons for sessions to time out. How long did you take?

    The transaction was probably deemed to have completed the moment the "label" was displayed on your screen.

    So you should have just printed it out anyway. Print to a file or print to an actual A4. You can then either print to the real label later, or photocopy to the real label depending on whether you do the former or latter.

    Or save the page to print it out later (which is why javascript or flash tends to suck for this sort of thing - you may not be able to print the stuff properly).

    --
  21. Paypal is bad, but credit cards are worse by Anonymous Coward · · Score: 2, Interesting

    A payment service that still depends on the credit card infrastructure is only a mild advancement.

    As bad as you think the PayPal and EBay fees are, they a dwarfed by the blood credit cards suck out of our economy.

    I'm not talking about the interest on unpaid accounts, I'm talking about the merchant fees. Those are the 2 to 6 percent fees that every merchant pays on credit card transactions.

    These fees are hidden from the consumer, because the credit card mafia forces retailers to charge the same price for cash as well as credit card transactions. As a result, the retailers raise all prices to cover the cost, and even the person who doesn't have a credit card subsidises the system.

    I believe the Fair Trade ministry in Australia rules this illegal there, and forced the listing of the credit card fee on the reciept, along with sales tax. If we adopted that system, the fees charged by credit card companies would be visible, and some people would choose to pay with cash instead -- thus allowing market pressure to do it's work.

    If google's system is just a credit card processing web application, I won't be using it.

    What is really needed is for someone to re-start PayPal's original business model. There were no fees, the company lived off the interest on money in the accounts. There was no need to provide your real name, it was all keyed to an email address and password.

    Starting such a business would require getting over the "chicken and egg" hurdle -- there is no incentive to sign up for it unless there are other people in it to pay and bill. However, given the financial costs of the current system, it has to be done.

    One way to do it would be for the small ebay sellers, who have the most to gain from this, to band together and do it themselves. We could form a company or association and each account holder could pay a small fee (such as $20) to get a voting membership or voting share -- if the charter specified that profits were divided equally among all accounts in a yearly dividend, the big sellers would have an incentive to keep costs down so they didn't simply subsidize the small guys.

    I think the offering of credit should be done through a system similar to prosper.com. I think the offering of credit should be separated from the transaction system.

  22. Re:Focus... by NoMoreNicksLeft · · Score: 4, Interesting

    I know what you mean about the ethics. Google started out in 1997, when IBM came to them and said "we need a search engine, and fast". Of course, Brin wasn't all that talented, and couldn't write one on his own, so he went to Yahoo and said "hey, let me buy this search engine off of you for $50,000, no one wants the things anyway". Then he turned around and sold it for $100 million.

    Years later, we have google bundling all sorts of seperate software together, and constantly raising the price on them because there are no competitors. When some little search engine tries to get it's website registered, Google threatens to cut off ICANNs balls, and boom, that little search website only gets to be used via IP address. The list of abuses is insane.

    And when that antitrust lawsuit was filed, who would have thought the DOJ prosecutor would be assassinated with a carbomb?

  23. Froogle is crap by br00tus · · Score: 2, Interesting
    To start off with I will say one good thing about Froogle - it is free. So everyone uses it. But it sucks for buying items. I know Base is slightly different than Froogle, but I doubt there will be much difference.

    First off, there are people who spam the system with thousands of items (often directly, or redirecting to Amazon) where they say they're cheaper than everyone else. When you click on it, instead of being "$40", it is actually "$50". Often the first three or four links are spam like this - you can buy the item, but you're told it's one price and then it's another. When you e-mail Froogle help to report this fraud, they are very slow to respond, if they ever respond.

    Another thing is Froogle has started this stupid thing where they group items together, so if yous search for say "onetouch ultra strips", you'll get a first response where it says "Compare 47 prices" currently. But when I click on that I see not only OneTouch Ultra strips but Basic Profile strips, and Surestep strips. I click on the 2nd link, "OneTouch SureStep Test Strips, 50 ea" from Drugstore.com, and nowhere in that page does it say Ultra. Now if I put Ultra in my search, and there are dozens of pages which have those 3 words in my search, why am I being redirected to a page that does not have Ultra? This is not a case of spam, this is a case of Google screwing up.

    I actually have a store that has Froogle entries, people get redirected to my store on a false thing like this (the ultra to drugstore.com surestep thing), buy it and then want to cancel their credit card sale or want to send it back, because they think I screwed up somehow, when actually it was Froogle and they who screwed up. Froogle should get rid of this stupid, broken new system and put back the old system where when you looked for the word ultra you'd actually wind up with a product or blurb that had the word ultra in it. I'm using "onetouch ultra strips" as an example, but this goes across many products.

    These are both major problems, so I won't even go into minor ones like how they're rating system for merchants has problems. The thing about Froogle is both of the problems I mentioned are new - their search system was working fine until they added this new grouping thing which doesn't work and which I'm sure no one likes. Don't put it out there until it works. And spammers were not around, but now they are, and Froogle doesn't deal with them. If they wait a week to deal with them each time, then they will never go away - if they can get a few hundred sales for each week on the fake prices, I'm sure the spammers will just set up a new storefront each week and make a ton of money. They should fix what's broken instead of coming out with whiz-bang new features every few months. Respond to e-mails about people spamming with fake low prices.