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That Google is retreating from its online retail store approach is almost as surprising as the idea that it would try to do it at all.
While in hindsight it’s not that surprising that Google would shutter a failed operation, based on some of the rhetoric coming out of the company earlier this year, I didn’t expect it would give up this soon. But at the risk of sounding like a “told ya so,” I have to say, what did you expect?
Almost anyone who’s been in the wireless industry for any length of time can tell you that selling phones is not that easy. It’s complex. Companies like Let’s Talk and Wirefly have made it work online, but not without a lot of trial and error, and in Wirefly’s case, an earlier bankruptcy as Inphonic.
Managers of these online stores earlier this year said they welcomed Google’s entry into the space and surmised that even with Google’s early stumbles in customer service, it would eventually figure out a way to successfully compete. That didn’t happen, although Let’s Talk and Wirefly no doubt benefited from the Internet search giant’s ability to raise awareness about buying phones online.
People like to touch and feel the phones they’re buying, and they can’t do that when phones are only available online. There also was that early wrangling and confusion over who fixes the phone – the carrier, Google or the manufacturer. That should have been ironed out way before launch. At least Google’s Vice President of Engineering did acknowledge in his post today that many customers want a hands-on experience before buying a phone, and they also want a wide range of service plans to choose from, things that stores like Let’s Talk and Wirefly offer.
One can only presume that some carriers went out of their way to make it difficult for Google to offer their services and hence, more service plans. I would have assumed Google would have made it work eventually, but if Mountain View got pushback from operators, that would have sealed the store’s fate. I seem to recall that Google (safely) positioned the store early on as an experiment of sorts, and you have to give it credit for trying. They did succeed in getting the Android brand out there, or at least Verizon Wireless’ heavy advertising for the Droid succeeded in doing so, as well as the myriad Android bloggers and reviewers and just plain Google vs. Apple-obsessed folks.
Oh well, lessons learned.


