Rafe Needleman's Off-the-Wall Analysis of Google Checkout

You've probably heard by now that Google has announced Google Checkout. Lots of articles have been published about how it is expected to work.

Rumors initially indicated that Google Checkout would be a direct competitor to Paypal. It's clearly not that, at least not yet. Instead it appears to be another implementation of an ecommerce wallet, similar to initiatives attempted by Microsoft, Yahoo! and others over recent years.

There was one analysis of the Google Checkout announcement that stood out for me as a bizarre conclusion on the part of the writer. That was Rafe Needleman's article on the CNET Web 2.0 Blog. Rafe said that Google Checkout is "Amazon's worst nightmare", as if the convenience of saving your credit card billing information and using Amazon 1-Click was a big factor in many of the sales that Amazon.com makes on a daily basis.

If you're still following this logic, Rafe thinks that Google Checkout will cut into Amazon's sales because people who start using Google Checkout will be able to have a 1-Click-like experience with many other ecommerce vendors that Google signs up to participate in their service.

Kathleen and I buy a lot from Amazon.com, and so do many of our friends and family. I don't know anyone who does it solely because of 1-Click. Most people I know think Amazon.com has a big selection, offers reasonable prices, and reliably predicts when you'll "get your stuff".

Am I wrong to think that Rafe is out in left field on this one?

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