Christian Ue.

The Most Important Quote From Google's Conference Call

There are dozens of very capable open source content management and shop systems out there. Google could take one of them and then rebrand, package and provide it for free - including easy Adsense and Ceckout integration. Maybe time to look out for smaller companies backing open source projects of that kind...

The Most Important Quote From Google's Conference Call

The article doesn't go into detail about Amazon. I'll do. As Google focuses on advertising it can really scale proportionally to the growth of the business side of the net. Amazon cannot.

Tey do not sell advertising but selling space to their merchants. That leads to the situation that their growth is limited by the simple fact that Amazon doesn't earn more when it attracts more sellers. It doesn't matter moneywise if 10 or 50 merchants sell the same item at Amazon.

It does matter for Google as 50 merchants are all going to book slightly different Adwords than 10 would have done allowing Google to deliver more ads. Even if they all sell the same stuff.

<em>So Google's ecosystem looks much healthier to me than Amazon's!</em> They also don't try to press businesses to subordinate unter a standard presentation scheme as the Amazon website. If you want to, you can use Google's very inexpensive and secure payment platform. If you connect that to Adwords, they'll start sending potential customers to what you are offering. That's about all an internet business really willing to be innovative could care about: cheap secure payment and customer leads. It will care for the rest itself.
Amazon in contrast makes all merchants look alike forcing them to be solely competitive on price and leave the innovation to their landlord Ammy. Much less attractive I think.