Google to take on Amazon.com with Google Base

Google looks set to use Google Base to compete with Amazon.com. Research has apparently shown them that many brick and mortar retailers are not happy with the performance of their online operations and could benefit from a service such as Google Base to outsource their e-commerce operations.

This makes huge sense strategically for Google and could go well beyond retailing. It could also include real estate etc. And the model is already proven as Amazon successfully offers such services to companies such as Target and Borders.

Google could compete effectively with Amazon thanks to both their neutrality versus retailers (after all Amazon competes with them) and thanks to their huge user base and technical skills.

Challeneges to Google succeeding include how extensive aservice they can offer the retailer - for instance they would surely not want to get involved in logistics. Google Base still has much to work out from an operational perspective - but this is a good step forwards.

And who said Google has no ability to diversify their revenue base.