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Wednesday, June 28, 2006

Will Google get into my pants next?

It's a wallet. No, it's a card. No, its GBuy. The latest buzz on the grapevine; the latest in myriad of services from Googleee... Surely, Google from being the friendly neighbor in the Silicon Valley is now becoming the not-so-friendly bully. It scooted Yahoo in lot many ways and now it is taking head on with eBay's PayPal. Though Eric Schmidt has very categorically said that this is not going to be people-to-people transaction but different and the rest of yapping. Here is my $0.02 on this topic.

Knowing Google the way we all know is going to tie this down with our purchasing behavior. There has been a lot of blogs saying that Google is going to use this service for ad words payment, IMHO there is more to this.

Once a user purchases something online using GBuy, Google will start promoting other products same way Amazon and other e-coms do; "Those who bought this also ..." the difference - what the e-coms do for their own service Google is going to do it for all of Internet and each of these recommendations can be monetized the same way as adwords. More bling for Google.

Now, since Google already knows what the user purchased, "Those who bought this product ..." can also be delivered to GMail. How about Froogle? A "Buy it now" right from Froogle site. What about Google Base? An edge to Craigslist? This is not just a threat to eBay but Amazon too. A direct access to user's personalized page. Not to forget the toolbar, remember how maps is integrated. Every page that has a payment option the toolbar can introduce - "Would you like to use GBuy for this purchase?", with this kind of access to users purchasing Google can certainly negotiate further discounts from merchandise sellers and say buy this with GBuy and save 1% or get a 10% rebate on your next purchase or 50% rebate on AdWords. GBuy can be tied to its video service and Answer service and cut on the cost of verifying payments with third party clearinghouse.

If Google manages to hit a volume that is astronomical; mighty Google can offer clearinghouse services (since it already has the transaction data) similar to First Data, MasterCard and Visa at a cost lower than the biggies are charging at least in the Internet arena; maybe not MC and Visa are backed by bankers. Never screw with bankers unless the bank can be acquired.

Google's Analytics that I have been using for over 2 months, I have come to the conclusion that it is very AdWord centric (kind of disappointed overall) this service too will revolve around the adwords.

Lastly, I think Google should acquire USPS and use them for delivering search results along with these merchandise too. Instead of stamps put AdWords on the envelope. Google should also acquire maternity wards and offer deliveries for free on one condition, baby's butt will get a display panel for AdWords and the earnings later can be forwarded to college fund.