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.Google GBuy will be free during the beta period, afterwards the company will likely charge 1.5% to 2% like PayPal.
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.