Shopping Spree: Pay with eBay or Google?

With the recent introduction of the ‘Checkout’ pay system from Google, the Internet search leader is treading into territory where eBay’s Paypal previously served as Web’s most common payment platform.

A Tale of Two Companies

Ebay has seen phenomenal success since its start in 1995. From its beginning as a marketplace for small businesses and individuals, the site has turned into a mainstay with revenues reaching nearly $1.4 billion in its second quarter of 2006.

While eBay turned into the powerhouse of today's online auctioning culture, another company was emerging with its sights apparently set far from the realm of online sellers.

While still Ph.D. candidates at Stanford University, Larry Page and Sergey Brin established Google with the goal of “providing the best search experience on the web." One IPO and billions of dollars later, market researcher comScore reports that Google now handles 43.1 percent of all queries across the internet.

Both companies have grown at a furious pace, making the internet more accessible and easier to use. More importantly, they have secured the gains in their isolated markets.

However with shareholders calling for ever expanding profits, customers demanding innovation, and vision for growth expanding, the $200 billion online retail market isn't as big as it use to be. Recent initiatives at both sides have set each company on a converging course.

Ebay: Capitalizing at Each Step

As recently as the second quarter of 2006, eBay's online marketplace has allowed for its 200 million+ registered users across the world to freely list nearly 600 million items for auction, the whole process isn’t free. EBay has set its sights on capitalizing on each step of the buying and selling process.