Google Checkout Free For The Whole Next Year
Oh boy…
Google has announced that it won’t even try to make money off Google Checkout, making it completely free through December 31, 2007. Yes, for the next 389 days, Google won’t stand a chance of making a single dollar off of Checkout, not charging one single processing fee. During that time, Google will have to swallow the credit card processing fees of all of its clients, and get nothing in return. On top of that, Google will be doing promotions like the free $20 off $50 and $10 off $30. For nothing!
Geez, talk about buying market share. If you have to go through this much to establish yourself in a market, there is no way it is worth it. Google shareholders need to demand to find out how much Google is losing on this, because it is becoming irresponsible at this point.
(via Andy Beal)
Previous Google Checkout Free Money posts:
Google Checkout’s Free Money Includes Some Charity - 11/27/2006
Google Checkout Up 30%, But Why? - 11/26/2006
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
Perhaps Google is making enough off of increased Adsense spending from Checkout customers to justify footing the bill for credit card fees.
Comment by Hashim | December 8, 2006
To me it seems like they may actually be just putting a generous amount of the advertisers’ money back into the advertisers. In their own words, Google Analytics, which costed $895 - 4,995 when it was UrchinTracker, is being provided to Google’s customers for free as “an investment in [their] advertisers.”
What else are they supposed to do with all that income from AdWords? I only wish more people would see this as proof that Google, whose slogan is “don’t be evil,” is one of the most honest companies to ever appear.
Comment by Brandon | December 8, 2006
In addition, they are now actively advertising their Checkout product:
http://img-cdn.mediaplex.com/0/7891/43939/con_holiday1b_160×600_25k.gif
And Brendon, keep in mind that when Microsoft attempts to get started in new markets and does so by using the money they probably made on Windows, everyone is all over them with how evil they are.
At THIS moment however, I have no problem with what they’re doing. I just wish they’d start listening - provide easier ways to give feedback that WILL be read. But that’s offtopic, I guess.
Comment by Tim | December 8, 2006
That would be true if Checkout was only for AdWords customers, but Google’s promotion page that I linked to clearly states that Checkout is now free for even non-AdWords customers. This is an expensive land-grab, and little else, and I’m not sure it is good business sense.
Comment by Nathan Weinberg | December 8, 2006
[…] Although I don’t currently have a use for a store checkout system I couldn’t pass on sharing this interesting tid-bit. Google Checkout has announced that it will be offered as a free service through December 31, 2007! […]
Pingback by Free Google Checkout! : Erik Vossman’s Weblog | December 9, 2006