Thursday, July 05, 2007

eBay & Google

One of the first things you are taught in business is never to let your customers know that they can do without you.

The ongoing battle by eBay and Google over their respective online payment services, PayPal and Google Checkout, brings that adage into sharp focus.*

In order to boost the stature of Checkout, and to rile eBay, Google decided to host a protest party at the same time eBay was having a customer-fest in Boston.

I just love Meg Whitman!

Her response was to pull ads from Google’s network immediately, under the guise of ‘testing marketing effectiveness’.

A few days later eBay came back.

However, all is not well, leastways for Google.

Come to find out, the loss of business over the period of time eBay was off Google’s ad spaces was negligible to eBay. . So negligible in fact that though eBay has returned, they have decided to dial back their relationship with Google over the next several months.

Are you kidding me?

How could this happen?

Why would you pi$$ off your largest customer?

Why?

Again all:

Don’t let your customers realize they can do without you.

Because they would!

*Google fired the first salvo this past Christmas, exhorting several online merchants to take advantage of terms that, frankly, put PayPal’s to shame. Those terms were further enhanced by a $10.00 USD instant discount offered to consumers taking advantage of Google Checkout.

eBay stuck back by disallowing the use of Checkout at its eponymous auction service.

The saga continues…..

Technorati Tags:

No comments: