27
2006
Google Checkout Update – Visits up 158% Last Week
Here’s a quick update on Google Checkout, which I posted about last week.
The market share of visits to Google Checkout was up 158% for the week ending 11/25/06 versus the week ending 11/18/06. ToysRus, which is showing the $10 off $30 purchase offer on the home page, was the leading site sending traffic to Google Checkout, accounting for 24% of its upstream visits for the week ending 11/25/06. Google is making a huge effort to sign up users during the busiest online shopping period of the year, and the $10 off $30 purchase appears to be working. While it still has a long way to go to catch Paypal in terms of visits, Paypal’s lead was cut in half in just one week: last week I reported that Paypal’s market share was 96X Google Checkout for the week ending 11/18/06 – this week Paypal was 38X Google Checkout in terms of market share.
Is it possible to compare Google Checkout to the PayPal visits that are NOT related to eBay purchases? eBay forbids sellers to use Google Checkout, so at this point the most relevant question is how GC is doing vs. PP when the shopper is not using eBay or eBay stores.
Mark,
I came up with a figure for you: Paypal’s non-eBay traffic only 1.6X as large as Google Checkout in share of visits.
Let me show you how I got there:
Google Checkout received 75.3% of its upstream traffic from Shopping & Classifieds sites for the week ending 12/2/06. That number was roughly the same for Paypal at 74.38%. 70.3% of Paypal’s upstream came directly from eBay sites. That amounts to 94.5% (70.3/74.38) of eBay’s upstream Shopping & Classfieds visits. Last week Paypal’s market share of visits was 0.2186%, 29.9 times greater than Google Checkout at 0.007314%. If we assume from the clickstream data that only 5.5% (100-94.5) of Paypal’s traffic is non-eBay related, we can do this: 0.055 X 0.2186 = 0.012023, which is only 1.6 times greater than Google Checkout’s market share.
So Google Checkout doesn’t have so far to go after all. To me, they are not really even the same thing, because Google Checkout is a credit card processing service, and Paypal users do not need a credit card and can make withdrawals directly from their banks.
LeeAnn