MarketWatch:

Google Inc. plans to introduce a new shopping feature in time for the holiday season, an analyst noted Friday, which sets the stage for an even bigger clash with eBay Inc. and other online-commerce companies.

In a report for Bear Stearns clients, analyst Robert Peck described a new feature that’s based on Google Base, a feature Google launched last October that lets people freely list items for sale.

Simultaneously, Google intends to “de-emphasize” its own Froogle shopping search engine, a Web site featuring paid listings from eBay and other online retailers. Google intends for Froogle to no longer be a standalone Web site; instead its listings would be absorbed by other search features, Peck wrote in his report.

The new shopping feature is likely to rattle electronic merchants, especially eBay, which has been working for some time now to ensure its own listings are included in Froogle shopping results.

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