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Google GBuy to launch on June 28

Posted on Tuesday, June 13 2006 @ 04:00:33 CEST by

Soon we can expect the launch of Google's GBuy, which is somewhat similar to eBay's PayPal. According to Forbes it will be launched on June 28.

It will enable the search engine giant to capture e-commerce transaction data, which could lead to more precise targeting in future searches:
"If harnessed, the precision of this targeting could be revolutionary," wrote RBC analyst Jordan Rohan in a report Friday.

On its core search results pages, Google will designate each merchant accepting GBuy as a "trusted GBuy merchant." If consumers view this as a mark of safety and security, Rohan believes this should increase click-through rate.

The analyst expects some resistance from merchants who will fear that Google will use the transaction data to charge them more for sponsored links in the future. Google's bid rank algorithm is influenced by click-through rate, and would, therefore, favor GBuy merchants, he said.
Google GBuy will be free during the beta period, afterwards the company will likely charge 1.5% to 2% like PayPal.



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