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Gbuy - Much Ado About Absolutely Nothing



Every month, it seems, a major company stares down the barrel of Google's brand recognition gun. Numerous news sources and blogs are expecting Gbuy to quickly become a PayPal killer offered Google's substantial brand name recognition and reach with customers.

But the whole PayPal killing talk is actually much ado about nothing. I believe whatsoever that Google will launch Gbuy, however I do have significant doubts as to whether it will actually change PayPal as many merchant's payment processor of option. Provided Google's recent releases, and provided how PayPal has positioned itself in the marketplace, I would not be shocked of Gbuy proves itself to be a substantial flop considering all the attention it has been offered.

PayPal's Vulnerability

Jeff Jordan of Ebay has every right to be terrified. When they feel pressured by Google, executives have a history of losing their dignity and control. Steve Ballmer is well known for his professional wrestling-like tirade in which he sent out chairs flying and cursed the name of Google, and Yahoo is very little better having openly quit its quest for search supremacy, which in effect was Yahoo executives crying "Uncle!" with the hope that they might lastly concentrate on something that they might in fact excel in.

PayPal, unlike Yahoo and Microsoft, is much more vulnerable to a direct attack from Google. The history of PayPal is filled with problem with CEO's, altercations with the mafia, and pressure from an Attorney General.

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The result is that lots of site owners view PayPal as a 'cheap' choice. Numerous of the problems of PayPal were really gone over on the forums a while earlier.

These issues open a vulnerability for PayPal If Google releases an item that enhances on the downfalls of PayPal in much the same way that they were able to revolutionize online maps, then PayPal ought to be stressed. Google does have a flair for making web applications that make existing applications look simplified and out-of-date.

Why Gbuy Will Not Kill PayPal.

Specialists have actually been predicting the wild success of Google in several industries for a long time. When Froogle was launched it was believed by numerous to be a major hazard to Amazon.com. Although Gmail has been a success, there have been no reports of Yahoo Mail suffering considerable attrition (in truth the buzz over the brand-new Yahoo Mail interface shows just how much interest there is in Yahoo Mail). And although Google News is an extremely useful service, it is barely considered the default news service for a lot of web users.

The truth is, the previous few Google releases have actually been relative failures. Google confessed that they screwed up with their video service (the Apple iPod Video is far more effective and sets the bar much higher than Google is currently conference). Google Reader was met a cumulative 'ho-hum' from the web designer neighborhood (as was Google Pack), and even though Google Sitemaps may be useful, it is still under used. Google Analytics still is unable to accommodate mass signups, and the buzz over analytics has likewise decreased considerably because its release.

Actually, if we were to take a look at Google's current releases, the only relatively successful releases have actually been Google's Search (clearly), Adwords and Adsense (also apparent), Google Maps, and Gmail. The truth is, with the exception of Adwords and Adsense, Google has not been really effective in introducing industrial items.

Google's Lack of Simplicity for 'Everyday' Users

The problem with many of Google's recent releases has been its absence of simplicity. Google's initial success in search was powered by the severe simpleness they brought to the procedure.

Although Adwords is puzzling to many website owners, Adsense also brings the trait of being extraordinarily simple. Add in the benefit of having the ability to make a significant income from Adsense and it is no wonder that Google has a firm hang on the contextual ad market. For prospective advertisers there is no higher reach than Google Adwords.

Many of Google's current releases have either did not have the simplicity that made them the choice for every day users or provide no considerable benefits over existing products. If PayPal is really going to be threated by Gbuy, then Google is going to have to best the simplicity that PayPal has actually capitalized on.

Gbuy - Finding a Niche Among Website Owners

A few years back when K-Mart filed for personal bankruptcy, I remember listening to an analysis which looked at the reasons that K-Mart was having difficulty. The analyst discussed how there were 3 significant gamers in the mega-stores: Wal-Mart, K-Mart, and Target. Wal-Mart had actually successfully placed itself as the price-leader out of the 3 mega-stores while Target, although still inexpensive, positioned itself as slightly more expensive, however higher quality. K-Mart, in this environment, lacked an identity to consumers.

Gbuy might effectively fall under the same problem. PayPal has done an excellent task in solidifying itself as the payment option of choice for millions of Ebay merchants. In addition, countless other website owners have chosen to at least add PayPal


I have no doubt whatsoever that Google will launch Gbuy, however I do have significant doubts as to whether it will really change PayPal as numerous merchant's payment processor of choice. Offered Google's current releases, and given how PayPal has actually positioned itself in the marketplace, I would not be surprised of Gbuy proves itself to be a substantial flop considering all the attention it has actually been given.

If Google releases a product that improves on the downfalls of PayPal in much the exact same method that they were able to change online maps, then PayPal must be worried. Google admitted that they screwed up with their video service (the Apple iPod Video is much more effective and sets the bar much higher than Google is presently conference). Google Reader was met with a collective 'ho-hum' from the webmaster neighborhood (as was Google Pack), and even though Google Sitemaps may be helpful, it is still under utilized.

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