Print 26 comment(s) - last by leousb.. on Jun 13 at 1:41 PM

Stiff competition coming for the eBay/Yahoo partnership

DailyTech previously reported that Google was developing an online payment system called "GBuy." The system is one of many systems under development from Google, to make it easier for online users to pay for items they buy through a trusted source, in this case, Google. However, news is out this week that GBuy is turning out to be much more than a PayPal competitor -- Google has plans to turn it into an eBay competitor as well.

According to several reports circulating around, Google will be launching its GBuy service later this month, presumably on the 28th. Google has not been speaking much about GBuy since the first few details of it were released to the public. Other Google services such as Calendar, Finance and Spreadsheet have been taking the lime light.

Analysts had expected that GBuy was going to launch soon primarily because earlier this year, eBay and Yahoo announced an agreement to co-operate together, to improve each other's traffic. Google is expected to leverage its AdSense and AdWords programs into GBuy in a similar fashion that it has done with GMail.

Some reports and analysts suggest that judging by Google's history; it may not charge any fees to post a sale on its service. This would quickly gain Google a client base that is accustomed to Google's "free and everywhere" model. Whether or not that this mode will last for GBuy however, remains to be seen.

Comments     Threshold

This article is over a month old, voting and posting comments is disabled

I welcome thee
By Brandon Hill on 6/12/2006 5:34:50 PM , Rating: 3
Let's see. My PayPal fees for last month were $188.01. I welcome GBuy and would gladly use it if the fees are reasonable.

RE: I welcome thee
By AllThingsSimple on 6/12/2006 6:33:27 PM , Rating: 2
Im with you, Paypal needs some competition. If its from Google, all the better. I will be using it free or not.

RE: I welcome thee
By SLEEPER5555 on 6/12/2006 6:49:37 PM , Rating: 2
agreed, undercut paypal and you have my companies buisness.

as for the ebay competitor i doubt they can compete traffic wise and free auctions will make more people selling the same items. with lower traffic and more units this will make sales prices less on google auctions than on ebay

RE: I welcome thee
By ElJefe69 on 6/12/2006 6:56:44 PM , Rating: 2
paypal is a terrible company. it offers no protection for the people that need it, the sellers.

buyers always try and screw the sellers. Reversals and "someone stole my credit card" yet I never canceled it, are crap that paypal welcomes so long as you pay their fees as a seller. the first day it is up, I am moving my 3-4 thousand dollar volume off of that.

RE: I welcome thee
By geeg on 6/13/2006 1:33:57 AM , Rating: 2
both paypal and ebay are terrible companies. they charge a lot for no guaranteed protection at all. lotsa fake items on ebay, noone regulates..

RE: I welcome thee
By creathir on 6/12/2006 8:22:12 PM , Rating: 2
Man... In fees alone?
Of course, you fail to mention how much CREDIT CARD processing costs...
Its more expensive than that in some cases!
I think you're complaining about a service that really allows credit card processing to be brought to the masses...

Sure competition is great, but you are not including your income...
So if you only brought in $200, yeah, $180 is a lot.
If you brought in $10,000, man you're greedy....

- Creathir

RE: I welcome thee
By Brandon Hill on 6/12/2006 9:32:03 PM , Rating: 2
Let's just say that last month I had around $5,000 in sales. PayPal + eBay fees equaled a total of $527.

RE: I welcome thee
By creathir on 6/13/2006 12:39:36 AM , Rating: 1
So $5000, $180 in fees, for credit card processing....
That's a 3.6% fee per transaction (average)

Many credit card companies CHARGE this amount... sometimes more, on the merchant, to provide credit card transactions

I think you're getting a pretty good deal... esp. considering you are doing something that 5 years ago was not even possible...

- Creathir

RE: I welcome thee
By geeg on 6/13/2006 1:35:19 AM , Rating: 2
so credit card companies charging like that is wrong maybe eh? You hired by paypal?

RE: I welcome thee
By creathir on 6/13/2006 12:11:33 PM , Rating: 2
I just think that people need to keep things in mind when talking about paypal. This is something that was NOT AVAILABLE to ANYONE just a few years ago. You had to get merchant accounts with the credit card companies in order to handle credit card processing. On top of that, the seller is ALWAYS the responsible party (seeing as they are the ones with the goods)

This is why you only accept pre-payment or else have someone PROVE they are trustworthy (fill out a credit application or something like this)

People that complain about how this system has worked for years upon years, even when there are solutions available to help the little guy (Paypal and other small merchant accounts with the credit card companies) are really showing the little appreciation they have for the service the credit card companies are providing. I suppose they could just choose not to accept credit cards... that would solve that problem... but then wait, how would they get their money? Snail mail? I guess 3.6% is the price you pay for instant gratification.

- Creathir

RE: I welcome thee
By bamacre on 6/12/2006 9:44:50 PM , Rating: 2
I did well over half a million in sales in 2005 over Ebay. I spent roughly $20K in ebay and paypal fees.

As far as service, Ebay and PayPal are both horrible.

As far as fees, PayPal fees are not quite as excessive as Ebay fees. It is a one-two punch for sellers with both however.

Buyers are actually the ones who end up eating these fees, as sellers just increase their shipping fees. Look how many computers on ebay carry a $99 or more shipping fee. That $99+ shipping cost normally covers the seller's shipping costs, ebay fees, and paypal fees.

So it is the customer who is really being screwed over with Ebay and PayPal, not so much the seller.

So, if Google could really develop a service to compete with Ebay/Paypal, and charge less, it will greatly benefit not just sellers, but also buyers.

I assume there will be a fee for transfers, there just has to be with the cost of credit card transactions. But if the listing and final value fees are none, i.e., no cost for the seller, this would, overall, be less than half the cost of doing business over Ebay/Paypal. I pay a 2.6% transaction fee with PayPal, and more than 3% with Ebay. So, as you can see, if I could get rid of the "ebay" fee, I could offer my customers better prices.

Go Google Go. I'd be honored to be your first seller. And I'd love to tell Ebay and Paypal to go fvck themselves.

"Spreading the rumors, it's very easy because the people who write about Apple want that story, and you can claim its credible because you spoke to someone at Apple." -- Investment guru Jim Cramer
Related Articles

Most Popular Articles5 Cases for iPhone 7 and 7 iPhone Plus
September 18, 2016, 10:08 AM
No More Turtlenecks - Try Snakables
September 19, 2016, 7:44 AM
ADHD Diagnosis and Treatment in Children: Problem or Paranoia?
September 19, 2016, 5:30 AM
Walmart may get "Robot Shopping Carts?"
September 17, 2016, 6:01 AM
Automaker Porsche may expand range of Panamera Coupe design.
September 18, 2016, 11:00 AM

Copyright 2016 DailyTech LLC. - RSS Feed | Advertise | About Us | Ethics | FAQ | Terms, Conditions & Privacy Information | Kristopher Kubicki