Google Payments & Unified Shopping Carts

Google Payments is finally here. Greg Yardley and Scot Wingo (thanks for the heads up, Scot) both were quick to pick up on it, so check out their sites if you want to get the foundation. The official Google blog and official Google Base blog also put in $0.02 on the topic.

While Google Payments should be applauded (feared?) for many reasons, one potential impact on the shopping comparison engine world is that I see a unified shopping cart for Google Base/Froogle as one logical step forward (once the Google Payments system has been fully rolled out). Amazon is the only shopping comparison engine (yes, Greg, you’ve convinced me) which offers this functionality, and I think it could be a game changer for Froogle.

As I mentioned last week in my post about eBay express, I’m disappointed to hear that Shopping.com (SDC) is not going to be involved with eBay express beyond providing catalog/organization technology.

I was hoping to hear a plan for rolling out the eBay express platform to SDC, allowing a user to add a sweater from Macy’s, hat from Nordstrom, and shoes from Zappos to a unified cart for checkout. I purposely give the example of the apparel category because I think the category begs for innovation on the shopping comparison engines, but unification obviously works for the electronics category - think digital camera and accessories, computers and accessories, ipods and accessories and many other areas (anywhere there is an upsell opportunity).

PriceGrabber has smart functionality which allows a registered user to see if it’s cheaper to buy all products from one retailer as opposed to from multiple retailers, but the multiple retailer route forces the consumer to go from store to store to store. A unified shopping cart technology from Google Payments or eBay express would simplify this process.

Google and eBay have a great advantage over the other shopping comparison engines because no one else has a payments system (except Yahoo! with Yahoo! Wallet). I’m sure Google Base/Froogle will exploit this opportunity ASAP, and I hope that SDC does the same.

As I’ve been discussing with a couple shopping comparison engines recently, one innovation I think consumers would welcome is a system where you can dress up a virtual mannequin (with your dimensions) with a pair of jeans from one company, shirt from another, and shoes from a third. The consumer could then save the mannequin and share it with friends to get feedback. Once settled on an ensemble, the user would then buy everything through a single cart. This example brings together social shopping and cart technologies - both areas which could help the shopping comparison engines become more sticky and therefore less dependent on pay per click engines.


Callum Mckkefery said

Hi Brian,

Good to see someone is talking about pushing price comparission forward, we are a UK based comparision (unbeatable.co.uk) company and have been working on single cart software for the last 2 months.


Marc Mezzacca said

I agree that Unified Shopping is a great innovation and much needed… Of course users would still have to pay shipping from each store I assume.

I think that the idea of “virtual mannequin” is a great one… But even a more simple approach would be like a niche social bookmarking site. Users could be browsing any clothing site (except flash-based ones), click a button and add the clothing item to one of their “outfit” lists to share with others. Women in particular seem to enjoy the idea.


Bob Baker said

Isn’t the ‘Payments’ issue a little separate from the ‘Unified Shopping Cart’ issue? Unless Google starts powering merchants’ checkout processes (as it would need to, like Yahoo Stores, Ebay and Amazon do), you can’t really provide unified shopping carts than span the sites of multiple self-powered merchants (ie, the guys that have their own independent platforms separate from a Yahoo/eBay/Amazon Stores platform).

I agree that PriceGrabber’s enabling of comparison of buying a basket of products from one seller vs multiple sellers is a cool product.


Brian Smith said

You’re right, Bob, definitely separate issues from a 50,000 foot level, but with Payments plus Google Base/Froogle plus Page Creator (pages.google.com), I think the unified shopping cart is one possible direction.


someone said

those who do not study the past are doomed to repeat it.

yahoo shopping used to have a unified shopping cart. 2 things:
1 - merchants hated it, especially larger merchants
2 - consumers didn’t use it

this is no great hope.


Nathan Decker said

I am not so sure ’someone’…

Merchants will hate it because it hands power back to the consumer but in the end its not the merchants vote that matters. They can fight the tide tooth and nail but eventually the ocean wins. The consumer will continue to drive toward anything that makes the market more efficient, leaving much less fat leftover for the merchant.

Consumers didn’t use Yahoo!’s cart because they didn’t shop online as regularly; the technology didn’t make sense and it was a big leap to even shop online and trust one merchant let alone using a multi-retailer cart. It was too early.

But I think Google has a plan here. Consumers are already creating an account with Google, perhaps unwittingly, by using the AutoFill feature which stores addresses and payment information and automatically completes checkout forms. This could be a baby step, one small and unsuspecting part of Google’s evil master plan. Once enough people are using Froogle to shop and the AutoFill feature to checkout, its a very short leap to get them to do both at the same place.

Nathan Decker
http://www.evogear.com


John K said

I don’t see the appeal of a unified shopping cart for the consumer either. Amazon already has one - you can buy from 30 merchants at one time, but people don’t care because you can’t get free shipping from them all.

Furthermore, speaking about apparrel, certainly it’s a women-dominated category. Why wouldn’t Gap and BananaRepublic unify their carts? Because it’s totally antethical to their brand strategy! Their customers would find it weird. What works for them is a constant stream of brand based email. Brand matters.

So I suspect this notion of the virtual mannequin and unified shopping cart is applying a man’s analytical view of comparison shopping to an area in which the primary demographic (women) don’t think that way at all…

In fact, brand is still so powerful in apparel, that I wonder if comparison shopping there is more than 5% of the transactions? 1%? It probably never will be very important.


Dave B. said

I agree with John K.’s observation that apparel is a small segment in comparison shopping traffic. I also wanted to point out that it’s also a category where merchants are willing to pay less per click, as the clicking vs. buying ratio is much lower compared to electronics, photography, laptops, etc. (although margins are high). Investment in this field (mannequin etc.) is tricky and may not pay off.

I am also asking if apparel is a real comparison shopping category. I think that it really isn’t. We all need to note that unlike iPod Nano (just an example…), which is a single product that you can by from many vendors, a Gap shirt isn’t. This leads comparison shopping engines to offer an inferior service when a user searches for a pair of jeans, compared to when he or she search for an iPod: You can go to Nextag, Shopping.com, Shopzilla, PriceGrabber or any other major comparison shopping engine and search for jeans. The result would be the same. You will not see a “Compare Prices” icon. Expect a “Go to Store”, “Shop Now” etc. instead. There is really no comparison shopping going on here, it’s just a list of different products from different vendors and unlike different digital cameras, there is not even a point in comparing them. No one is going to make a buying decision based on the fabric or the zipper color, unlike comparing pixels, weight, and screen size which is a handy feature in digital products.


Tal Shaked said

Isn’t this what Shop.com already does, although it is though their website. They allow you to shop from a variety of different merchants using one cart and potentially only having to pay the highest of all the shipping fees.

Even though their catalog still seems to be quite limited, I think the concept is right. I wonder how they are looking to expand this concept and their brand, as it seems that the whole unified shopping cart concept is what they are singing as their major differentiator.


transcends01 said

I like the mannequin idea. You could go further and offer the shopper the chance to place a photo of their head at the top. I have seen glasses websites do this for a better idea on whether a particular pari of glassed suits a customer or not.



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