Google Checkout has been causing a bit of a stir amongst the affiliate community in the last few days. Google Checkout allows users to purchase from websites quickly and easily and then track all information on those purchases in one place. It offers a secure way to purchase goods from multiple sites, with one centralised account - very similar to Paypal. For e-commerce sites, it provides an alternative way to accept payment for goods or services. And with Google currently offering substantial discounts to users and advertisers, many are looking to implement the system.
At present, Google Checkout is being rolled out across the UK with a handful of merchants participating in the scheme. The potential benefit for online marketing is generally obvious; but the possible impact on the affiliate marketing community has already been recognised.
For affiliate sales to be tracked by the affiliate network, the network's tracking code must be present on the transaction confirmation page. Google has so far only formally authorised one UK affiliate network to place their tracking code alongside Google Checkouts' own tracking.
In essence, this means that affiliate sales will not be tracked by the network if the sale was made using Google Checkout. The impact of this on affiliates and networks is an obvious loss of revenue. Merchants may also see a loss of revenue, as affiliates are likely to leave affected programs whilst this huge leakage channel is left unaddressed.
Currently, this isn't a major issue. Only four or five merchants in the UK running affiliate programs have implemented Google Checkout. Equally, other UK networks are actively seeking authorisation from Google to be a tracking partner.
As Google Checkout increases in popularity, it's imperative that merchants appreciate the implications that it will have on their affiliate program before signing up. It's also important for the remaining UK affiliate networks to actively push Google for authorisation.
Once all UK networks have been approved, it is possible that Google Checkout will benefit affiliates, bringing an increase in conversion rates and a higher number of users repeatedly shopping online.
The new partnership between Yahoo! and Paypal, announced this week, may face similar obstacles.
