Google Checkout wins over thousands of merchants in Q3, Google says
Google Inc.’s new online checkout application, Google Checkout, signed up thousands of merchants in the third quarter, and now includes among its merchant base Buy.com, RitzCamera.com, Sierra Trading Post and Bluefly.com, Google says.
Google hasn’t released actual numbers of participating merchants or sales volume processed through Google Checkout, but it notes that growth is meeting expectations. “We’re very happy with the adoption and usage numbers,” a spokesman says.
Google Checkout offers merchants new approach to processing online sales while also combining payment processing and search engine marketing strategies to lower overall costs, experts say.
What appeals to many merchants about Google Checkout is the ability to bundle Google AdWords costs in with potentially lower payment processing costs, says Dan Schatt, senior analyst at research and consulting firm Celent LLC . “That they can buy two in a package can be very appealing,” he says. “They’re two of the largest line items that any merchant has.”
Google Checkout allows online shoppers to purchase from participating e-retailers with a single Google log-in. The service also ties into AdWords, Google’s search advertising program. Even though many analysts view Checkout as a payment alternative to PayPal, Google insists it’s not a form of payment. Instead it uses consumers’ existing cards and streamlines the payment process.
To use Google Checkout, consumers create an account at Google.com or a participating retailer. Shoppers can locate retailers accepting Checkout by looking for the service’s icon on Google AdWords advertisements or at an e-retailer’s site. Retailers using Checkout also are listed on the Google site.
The consumers enter a user name, password and all basic transaction information such as contact details, credit or debit card data and shipping preferences. Thereafter, when checking out at any site offering the service, shoppers can select the Google Checkout option and complete the transaction simply by entering their Google user name and password. The system basically fills in all necessary data fields. This differs from PayPal, where shoppers must enter basic transaction information for purchases at each site.
For merchants, the standard rate for using Google Checkout is 2% of a sale plus 20 cents per transaction. Merchants who accept Checkout and also use the company’s AdWords program can process $10 in sales at no charge for every $1 they spend on AdWords. This makes use of Checkout considerably less expensive—potentially even free—than what merchants must pay for card and PayPal transactions.
“With Checkout, we’re focused on the entire search-find-buy cycle of e-commerce—driving leads via the Checkout badge that appears in AdWords ads, increasing conversions by allowing buyers to make their purchase with just a few clicks, and reducing costs through the AdWords pricing incentive,” the spokesperson says.
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