Google Checkout Up 30%, But Why?

By Nathan Weinberg

Hitwise reports that downstream traffic to Google Checkout is up 30% in the past four weeks, with the number one store, by far, being Buy.com. Buy delivered 18.3% of Checkout’s traffic, with number 2 Dick’s Sporting Goods way behind at 4.8%. Of course, Google’s major “Free Money” promotion is the biggest thing driving people to use the service, and with it running until the end of December, we’ll have to wait for January numbers to see if there is a big drop-off.

Paypal could be considered the nearest competitor to Google Checkout, but Paypal is still dependent on eBay for the majority of its traffic: for the week ending 11/18/06, 70% of Paypal’s upstream traffic came directly from eBay.

Both Buy.com and Jockey sent 16% and 7% of their respective traffic to Google Checkout last week, which seems like a very high conversion rate. Both sites are promoting the $10 off Google Checkout offer on their home pages, which indicates that the offer could be increasing conversion rates. The other sites on the chart are only showing the offer on the checkout page itself.

Google, with its deep pockets, is effectively buying traffic for its Checkout service, and smart retailers are using the offer to increase their conversion rates, but it could be a long time before it reaches Paypal’s traffic levels - the market share of visits to Paypal was 96 times greater than for Google Checkout last week (week ending 11/18/06). Possibly Google’s promotional efforts that will launch on Monday 11/27/06 will help.


Google Checkout Free Money coverage:

Google Tops PayPal In Money Wasting War - 11/22/2006
PayPal 2 Google: We Can Throw Twice As Much Money Down The Toilet! - 11/20/2006
Is Google Desperate With Checkout? - 11/03/2006

UPDATE: Hitwise reports that in the week following those stats, Checkout rose another 158%, with Toys’R'Us now leading the pack.

Posted:
November 26, 2006 by Nathan Weinberg in:
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3 Responses to “Google Checkout Up 30%, But Why?”

  1. » Google Checkout’s Free Money Includes Some Charity » InsideGoogle » part of the Blog News Channel Says:

    […] So, instead of saving ten bucks on that new video game, you can give $30 to the United Nations Foundation, the Acumen Fund, TechnoServe, Global Green USA, and Campus Climate Challenge, and Google will add ten dollars to your donation. That’s a much better use for all those Google dollars, and may in the end represent more money given to charity than the Google Foundation has given in over a year. This, I actually like. Posted: November 27, 2006 by Nathan Weinberg in: […]

  2. Sarah Trent Says:

    Does anyone remember some news stories from a year back about plans for an online payment processing system called Google Wallet? I have heard very little about it since and wondered if this idea had been shelved or whether it became Google Checkout?

  3. Neale Says:

    It Will be interesting to revist the figures next year & see where google is at
    then !

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