part of the Blog News Channel

Shocker: People Stopped Using Google Checkout After Google Stopped Paying Them To

Seeking Alpha shows off this chart showing how Google Checkout usage has fallen dramatically since December:


What happened after December? Well, Google stopped giving almost every Google Checkout user twenty dollars just for shopping. Like I said before, if you have to pay users to use your service, then it doesn’t deserve to succeed, and shoppers are agreeing. I don’t understand why Google Checkout needs to exist on websites like, that have no problem processing credit card orders normally, and Google needs to find an excuse for their system. At least PayPal has a bank account.

April 30th, 2007 Posted by Nathan Weinberg | PayPal, Checkout, Services, General | 10 comments

Hosting sponsored by GoDaddy


  1. C’mon Nathan, I think you’re missing an important and somewhat obvious point. Market share went from 0.1% pre-gimmick to over 1% post-gimmick. I suppose you can’t really draw any sure conclusions from such a limited set of data, but it looks to me like Checkout’s strategy has successfully led to increased long-term adoption.

    Comment by Jason | April 30, 2007

  2. […] Via. […]

    Pingback by Google Checkout Dives Without Consumer Coupons | Marketing Pilgrim | April 30, 2007

  3. yeah, i doubt they were anticipating it remaining at 4% indefinitely. And 2 points do not a trend make, but i wouldn’t be surprised to see the slight increase from February to March continue into the coming months.

    Comment by joe | April 30, 2007

  4. Guys, I don’t have an arguement on why Google Checkout should exist, and I don’t think a single consumer has one either. As long as Checkout is offered alongside standard credit card payments, it will have no purpose and no reason to gain traction. Maybe if Google deals to be the sole checkout provider for website, or adds bank account features, but otherwise I see it stagnating in the short term.

    Comment by Nathan Weinberg | April 30, 2007

  5. This is a case of looking at evidence and seeing what you want.

    Another possible answer might be that people spend more money in December and figure that reduces markedly in January,but the winter sales do affect that figure. There is a total slump in February which picks up in March.

    The graph that you’re showing is one that I’d EXPECT to see in any store; whether inet or high street.

    Comment by Sean | May 1, 2007

  6. Sean, you really expect sales to drop 75% in January? There’s no way that’s typical for any online store.

    Comment by Nathan Weinberg | May 1, 2007

  7. “Guys, I don’t have an arguement on why Google Checkout should exist, and I don’t think a single consumer has one either. ”

    one argument is that some people actually do like the idea of having an “online wallet”, where you can enter your credit card, billing and shipping information, then have truly one-click buying across many different websites. Of course, Google is not the first to do this - Microsoft Passport tried and failed, as have others. But if there is high adoption of Google Checkout on online stores, i will continue to use it for the convenience of 1) not reentering all my information to make a purchase, and 2) to have a centralized location (my Google Account) where I can get info on current and past online orders I’ve made from many different stores. The main drawback I have from it is that not enough stores have adopted it yet.

    If I do a Google Product Search and I see several products from different stores (that I don’t have an existing account with) for the same price, I am more likely to click on the ones that say they support Google Checkout. Furthermore, if the site support Google Checkout, that’s one more site that I don’t have to create an account with, which involves tracking another username & password and giving my CC information out to yet another anonymous online retailer.

    Comment by joe | May 1, 2007

  8. Joe, I like what you’re saying, and that basically makes you their first loyal customer. I need more of a compelling reason, especially since I shop based on price, not convenience (since I’m super-broke), and would rather enter my info a hundred times than pay five dollars more. PayPal’s approach provides a significantly better advantage to me for now.

    Comment by Nathan Weinberg | May 1, 2007

  9. sure - like i said, if I do a Product Search, and there are multiple stores all with matching low prices, then I will choose the one that supports Google Checkout. If another store is $5 or $10 cheaper, i’ll check it out and probably use it. Of course, I’ll use Amazon or newegg or whatever also, because I already have accounts there and I know and trust them, even though they don’t support Google Checkout. I am also willing and happy to use Paypal to checkout if a store offers it.

    It boils down to convenience, for me. If more stores adopt GCheckout, I’ll be happy. If it dies a slow and excruciating death, no skin off my back - i’ll just go back to what I used to do.

    Also, i wouldn’t consider myself a Google Checkout Loyal Customer, either. I’ve actually only used it 3 times. First, last July right after it was rolled out, and I had a horrible experience. I ordered an item from and found out it was on backorder, and I had a hell of a time getting the order canceled. It literally took me 3 weeks of wrangling back and forth between and Google customer support to get it canceled. In the end, though, Google sent me a $100 credit, on top of the refund, which was nice.
    Second, in December when they were offering the $20 off any item.
    And third, yesterday, because I was doing a search for a particular HDTV Tuner, and the lowest price I could find anywhere was on Google Product Search from, who supported Google Checkout, so I used it.

    All i’m saying it, i think it’s a fine idea, and i’ll be happy to see it work, and i’ll use it when it’s in my own best interest.

    Comment by joe | May 1, 2007

  10. Many people who used GCO for 10 dollars off had there orders canceled even though they abided by the Google Checkout Terms. It is impossible to contact Google.

    The offer is one per new customer, that means yes your Son, Brother or Wife is supposed to by law be permitted to get the offer. Google Is breaking the Law when they claim you have multiple accounts and thus violated the terms.

    Check out the terms, and it is clear each new customer gets one, but yet Google will cancel your order. And they know your family members live in the same house, yet if somebody in the house used that address, then they will cancel the order.

    This is breech of contract and false advertising. We are not dong anything wrong, Google is breaking the terms of there terms!

    Any attorneys want to sue them for this abuse?

    Comment by Karen Stlone | January 4, 2008

Leave a comment