The long-rumored Google Marketplace may be closer than we think. In an effort to increase advertising revenue and retail search traffic, Google buy buttons will be introduced that will be found on mobile search results pages. The buttons will show up in paid mobile search results under a “Shop on Google” heading found at the top of the page.

The Google buy buttons are set to appear in a matter of weeks but will not appear in unpaid search results or results on desktop devices – just mobile search results. When users click on a buy button, they will be taken to a product landing page where they can choose product size, color, and complete their purchase. If users opt-in, they may store credit card information to automatically load when they make a purchase. Customer payment information will not be passed to the retailer. Once payment is complete, Google will pass on the payment to the retailer. However, retailers will handle all processing and shipping operations. Google is offering retailers access to merchant marketing programs that would allow retailers to continue to market to their customers the say way they would on their own website.

In this Google program, Google will list several items on the first page of mobile search results and will receive advertising revenue from the merchant for all clicks.

So far, feedback has been controversial. Many retailers are uneasy about letting Google impede on customer relationships or have access to valuable sales data.

As Google seriously adjusts itself to accommodate mobile users, it is set to take on Amazon and eBay for mobile transactions with these buy buttons. The Wall Street Journal cited anonymous sources mentioning that Macy’s will be one of the retailers Google is planning to partner up with and it looks as though the buy buttons on paid shopping ads could evolve Google from ecommerce referrer to transactional middleman. A big reason why Google is doing this is to accommodate the surge in smartphone usage. The small screen size limits the space for ads and the difficulty of entering in credit card information on a retailer’s site has prompted many users to flock to sites such as Amazon and eBay where they can purchase with one click and where their credit card information is already saved.

What are your thoughts on the new buy buttons? Retailers, are you interested in utilizing this service from Google?