Google is asking retailers and others to set up shop in its new online market

Google is set to make its big move in retail to challenge Amazon.com, eBay and others. However, doubters said that the firm would need to make major strides to attract big brands.

The search giant said that Google Base will be a platform for retailers and others to offer goods and services, according to a report in the Financial Times.

In that sense, it will chase Amazon, which has recently attracted giants such as Marks & Spencer and Borders to its site. However, it remains unclear whether Google will also offer Amazon-style back-office outsourcing or restrict itself to being a searchable front-end.

The FT article quotes Google European vice-president of European operations Nikesh Arora saying Google Base will “have a huge impact on retailers”.

But in a statement to IT Week, Google said that it sees the opportunity to do more than just help companies sell online: “Base enables people (both companies and individuals) to upload a wide range of additional information, commercial and non-commercial onto the internet,” it said.

“This is not a new product – nor is it a retail specific product. Most companies, whatever their industry, have a huge amount of information on their databases – some of which is commercially sensitive, but much of which isn’t. Google Base is a way for them (and non-commercial organisations) to put this information onto the web so that it can be easily searched.”

The firm also cited new data it commissioned from Forrester Research suggesting that using online tools would also help firms sell offline because customers frequently use the web to gain information and compare prices before making purchases.

Some watchers noted that Google may struggle to attract major brands, but smaller firms, laggards or companies underperforming online could be lured by potential customer reach and might not be so fearful about the possibility of losing differentiation and brand equity.

“It’s providing retailers with another channel but we don’t know how much control they will have,” said Andrew McClelland, marketing director at online retail trade group the IMRG.

McClelland added that smaller firms that currently use eBay and other marketplaces to sell goods could be attracted to a “no-frills approach”.

Others noted that the current Google Base beta seems to limit activities to searchable listings.

“This is not e-commerce, it’s just online advertising,” said Paul MacGregor, practice leader for retail and consumer projects at project management consultancy PIPC, which counts Littlewoods among its clients.

“To maximise online selling you need a proper e-commerce engine with tailored logistics including ordering and fulfillment,” said MacGregor. “Ultimately, if you don’t deliver what you are offering on the web, you can damage your reputation and lose business. So unless Google can sort out distribution for its retailers, which seems to me to be unworkable, it is not offering a new service. Just look at Kelkoo.”