Google's Checkout Challenges

"I do not normally think of Google as a firm that unveils something short of industry standard, but I have to rethink that," says Burley. "Whether it was hubris or ignorance, I do not know, but they have misstepped badly by rolling out a service that clearly is not ready for prime time."

Google Checkout has seen many glitches, says one manager at Checkout partner Starbucksstore.com. Purchases made through Google Checkout often face delays trickling through to the vendor's site, meaning that items can be out of stock when the purchase finally comes through. Crediting customer accounts has also been a problem.

And unlike eBay's(EBAY Quote) PayPal service, the market leader in the space that enables users to continue to browse and buy after they have made one purchase, Google Checkout whisks customers away from the vendor's Web site.

That's one reason that Starbucksstore.com (an alliance between Seattle-based Starbucks(SBUX Quote) and Santa Monica-based Cooking.com) has yet to launch Google Checkout on its flagship Cooking.com Web site.

"It hasn't been perfect, and it is still in its early stages," says Jae Kim, the general manager of Starbucksstore.com. "But I think it is a great addition to our site, and despite the occasional hiccup, it has been without problems for the most part."

"It's not unusual in e-commerce for very popular items to sell out, particularly during the holidays, and there are many reasons for this," a Google spokeswoman says. "We believe less than 1% of orders through Google Checkout during the holiday season have been canceled by the merchant because the item is out of stock."