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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.

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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 (blog) 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
Nope...
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


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