| Sun Nov 24 2013 14:04:01 |
Google Rejects eBay Model of a Blind Marketplace
By: Ina Steiner
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Every so often, the idea of Google becoming a marketplace is floated out there by reporters or analysts, and occasionally Google comments. In a recent interview, Google executive Sridhar Ramaswamy (SVP of Ads and Commerce) responded to a question about when the company would launch its own ecommerce marketplace.
Ramaswamy said Google stresses the fact with large merchants that it is a joint consumer relationship - the customer is co-owned by the retailer and Google.
"We're not in this to build a blind marketplace where they don't know anything about what's going on. They care about their brand and their relationship with the consumer. And we're working with them to enable a better ecommerce experience, whether it's GSX (Google Shopping Express), whether it's done on the phone or desktop. When you start with those principles, you're much more likely to have a productive relationship with them."
(That sounds a lot like eBay-talk these days.)
Ramaswamy said Google is tasked with delivering leads and limiting friction for merchants, and at Google, they ask themselves, ""Rather than building a marketplace, how do we grow local shopping? How do we deliver more consumers to stores?" I see lot of value in making commerce, on a very large scale, as frictionless as possible, rather than obsessing about things such as "Google needs to have a marketplace.""
There are two things this AllThingsD article reinforces in my view:
1) The changing focus of online marketplaces from offering a peer-to-peer experience to hosting large retailer and brands. eBay is spending much of its marketing efforts on promoting large retailers and brands and is purging small sellers. Amazon encourages smaller sellers to use FBA so it can control the experience - and it limits collectibles to authenticated items from a relatively small number of sellers, for example. And now Google is saying it doesn't want an eBay-like "blind" marketplace and is also working closely with large merchants.
2) The possible sharing of proprietary data with marketplaces themselves and with their favorite merchants. Sellers have long called on Google to launch a marketplace - but does Google already know too much about your online business? There's a lot of discussion in the industry about Amazon taking advantage of the data it obtains about third-party sellers' transactions to then compete with them - but couldn't Google also use such data and share it with large merchants? And eBay too, for that matter?
How can marketplaces offer a trusted shopping environment for customers when allowing almost anyone to sell there?
How do you keep your transaction data proprietary?
And which company would you like to see succeed as a marketplace open to sellers of all sizes?
Let us know what you think! |
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