Checkout + GBuy + Froogle = jellyfish.com ?

So Google launched Checkout today there is going to be a lot of buzz around it. In a nutshell Checkout will let people like me buy from several online retailers (that may or may not advertise online using adwords?) in a safe and secure manner (Google knows my credit card, billing address info etc.). This way I can track my purchases and maintain privacy, since the retailers don’t get to know anything about me! All this will of course help Google better know when a “purchase” took place through a click on one of its advertisements.

The bigger question in my mind since yesterday is that, will Google copy the jellyfish.com model through its froogle product (which as of today earns money through CPC ads). With the Checkout product in place there is no reason why Google can’t share a certain percentage of its revenues with a consumer who buys a product. Think of it as a sort of “cash back” in layman’s terms. Hence Google creates an incentive for me to buy through Froogle.

I get 3% cash-back when I use my amazon card to shop on Amazon. If amazon can extend this gesture to all its customers then that would be something worth talking!! But then again inflating prices a bit to accommodate such cash-back strategies may not be in the best interests of the consumers. Interesting stuff!