E-tailers Lose Free Ride On Google Checkout
Written by Evan SchumanDecember 30th, 2008
For years, Google has given its Google Checkout service to retailers for free, as long as they bought ads on Google. Alas, no more. Explained one Google manager: “Why have it as a loss leader if it’s doing OK? We saw very healthy results after we decided to charge for the service.”
The change of heart—covered quite well in this Investor’s Business Daily story—is part of an overall cost-cutting program at Google. “They are cutting back on things like their free cafeteria hours, subsidies of their on-site daycare, so trimming subsidies to their merchant partners is no doubt part of that belt tightening too,” Forrester Research Analyst Sucharita Mulpuru was quoted as saying.
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Our Comment SPAM system is getting very aggressive these days and has been blocking legitimate comments. If you post a comment and don't see it appear within 2 hours or so, can you please send a heads-up to customer-service@storefrontbacktalk.com? Ideally, please include the time you posted the comment. That will allow us to try and hunt for it. Thanks! P.S. We're working on fixing the system, but we don't want to lose any valuable comments in the meantime.
I have strong reservations about the 'individual' certification and posting of that information for merchants. Can you imagine the potential employee poaching that might occur? The implications when competitors can look up how many are certified with each of their competitors?
-Christine
