eBay Gets The Lame Award for Google Checkout Ban
Hard to know where to start on all the eBay news today. Paypal president out, possibly for performance. Rookie Skype president Rajiv Dutta parachuting in to save day (and who will run Skype, another critical eBay division, albeit one that eBay shouldn't have bought, now that Rajiv's headed back to CA?). A detailed analyst report (Mark Mahaney) concluding that Google Checkout is actually a viable threat to PayPal. And an unbelievably lame response on eBay's part to Google Checkout, which was to forbid sellers from using it.
Only one word is required to riff on the Google Checkout ban: pathetic. "OOOOooo, scary, a new product that our customers might actually prefer. Quick--outlaw it!" Not the best way to win customer hearts and minds. And along with the management changes, a graphic illustration that the fear quotient is running high.
FIRST!
Posted by: First is best | July 06, 2006 at 04:02 PM
F U K T
Posted by: New Troll in town | July 06, 2006 at 04:03 PM
Hey Henry, right on the money. Ebay banning gcheckout just shows how much of a huge threat they view it.
I found this AP story about how gcheckout is cheaper, easier and faster to use than PayPal.
http://www.belleville.com/mld/belleville/business/14980099.htm
Some of the people i know who have to deal with paypal have been waiting for a long time for a viable competitor, if for nothing else, to kick them into gear and provide a better service (many sellers absolutely hate paypal)
Here's the big killer for Paypal, in my opinion: Even though google claims to not be competing with Paypal, anyone who's read through eBay's numbers knows that a huge fraction of their transactions are "buy it now" (i think it's almost 40%). For those transactions, gcheckout and adwords will become a direct competitor. Especially because ebay is getting a lot of its leads from google anyway. Why would a buyer go to ebay and deal with paypal's awful system when they can spend about 2 minutes buying the product directly through google? I've used gcheckout for buying videos on google video and it's extremely easy to use.
I forsee a very bleak future for paypal over the next 2 years.
Posted by: Victor | July 06, 2006 at 04:46 PM
I am kind of surprise that I am not seeing any new merchant taking up the google checkout. I have search numerous terms such as camera, aeron chair, etc. I have not seen any of those google checkout symbol next to anyone else other than those already announced vendors.
It does not make sense to me. I would jump into it if I were a small merchant. Small is the keyword.
Posted by: john | July 06, 2006 at 05:24 PM
eBay is also removing links to rapleaf.com a new type of rating service. i guess they are not friendly to the concept of expsoing their customers to the competition.
not a smart move.
Posted by: Avner Ronen | July 06, 2006 at 10:12 PM
I got killed on this post. Totally caught me off guard. It's on now FUCKERS.
Posted by: King Troll | July 07, 2006 at 09:17 AM
Why is it lame?
Attempting to prevent a competitor from usurping your own service is lame!
Wouldn't you do the same?
Short of attempting to start their own auction site, what can GOOG do about it!
Posted by: walter | July 07, 2006 at 02:15 PM
Google Checkout exclude paypal as a payment method. . . pretty lame too. . .
Posted by: will | July 07, 2006 at 08:31 PM
Henry,
I did not expect such a lame post from you. For one thing, Google decided not to display shopping cart icon on ads if a merchant is using PayPal or any other gateways for that matter. Why should eBay promote Google checkout if Google is not giving a damn thing about supporting PayPal and other gateways. They are building their 'Google is the center of universe' empire. Why should others make it easier for them?
Also, no one is talking about it, but Google is very sneaky here. They pretended and kept saying Google Checkout is not going to compete with PayPal, but it’s just so sneaky and calculated. By running Google Checkout at a loss (at a cost at least), they undermine entire business model of PayPal. Instead of trying to find fault with eBay, why no one is talking about how deceitful Google has been prior to launch of checkout with all their false statements. That's very evil deliberate manner of handling this matter.
Posted by: Steve | July 10, 2006 at 01:32 PM
With all of the focus shifting to Google on just about every aspect of the "Net", I am starting to wonder if companies, specifically EBAY, have just about every ounce of bad news priced into their stock. While Google seems to have all of the momentum regarding anything related to the net right now, it just seems we are putting way too much emphasis on Google destroying well established businesses like EBAY.
I for one am starting to wonder if this is a fire sale on their stock? It might turn out to be one of those points where we look back and say would have, could have, should have!
Any thoughts?
Posted by: Ryan | July 10, 2006 at 02:02 PM
Well, just what makes Google entitled? I think it is the big whammy no one really expected. The google cart thing may as well promote on Orkut for a band of crazies but thats about it.
Is every business supposed to bow and fold to the fraud merchants of google? NAHHHHHH won't happen, they made no friends on the way up and the down is gonna be a HARD ride.
Posted by: gbuyguy | July 11, 2006 at 12:08 AM
I have to disagree with the "pathetic" assessment. If eBay were to open its doors to GBuy, they would be throwing the moat they've been building for the last 4 years out the window.
So it's too bad that eBay got caught with their pants down. I think it's all in the interest of good strategy. They've had plenty of time to build more value on top of the Paypal platform, but are probably too busy attending to Skype to give Paypal the nurturing attention it needs.
I can't think of a good direct analogy right now, but Sun's squandering of Java comes to mind. They opened the box, let everyone else make some money... and we all know how that story goes.
Posted by: venturelesscapital | July 11, 2006 at 03:49 AM
I guess ebay's respond to google checkout was kind of premature. I know that CEO of paypal said he quit because of family matters but than is that the only reason? Why at this moment? Actually they don't need to be scared of google checkout. It is not proved yet and it is not guranteed to be successful. And for the ban at ebay, isn't that natural? Why ebay take the risk and accept the google checkout?
I came through this article and thought it was okay.
http://www.ibtimes.com/articles/20060710/checkout-google-paypal-ebay-shopping.htm
Posted by: MK | July 11, 2006 at 09:00 AM
Paypal is evil. The eBay/Paypal complex is a monopoly and should be treated as such. Any customer/user of online auction based or fixed priced based e-commerce should welcome Google checkout. eBay's refusal to use Google Checkout says two things: 1) We don't give a shit about our sellers. and 2) We would rather just not let the big boys play, rather than perfecting our game so that we can beat them.
I am personally waiting for the mods to be written to start using Checkout on my own sites. I am admittedly too stupid to write the code myself, but when the code is ready, I will use it.
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