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Google is already taking advantage of Google Base, using not only information submitted by local merchants but also a third-party database of national product inventory, organized by locality, to launch a local version of its Froogle shopping service; now, both classified advertising and yellow pages publishers (not to mention other online shopping services) will likely be facing a serious challenge from Google - writes the New York Times.

If users of Froogle type "video iPod Granite City Illinois," for example, they would see map information with the locations of stores that have the product in stock.

Google would not say which third-party information service would provide the product inventory information for local stores but said the data would be data from several hundred chains, such as Best Buy, Circuit City, Home Depot, Bombay and CompUSA.

Retailers such as Best Buy and Circuit City are themselves making local inventory information available on their websites, and Google's search engine competitors are testing the water. Yahoo Shopping, for example, gives merchant information that can provide local pointers - and Yahoo says it is considering providing local inventory information directly to online users.