It’s been just over a week since Google unveiled its online store to sell Android-based cell phones, and already, at least one other online retailer is feeling not the pain but a gain.

Since Google unveiled the Nexus One and a new retail site on Jan. 5, more Web users are finding their way to other wireless retail sites. “I should send a thank-you letter to Google,” quips Andy Zeinfeld, CEO of Simplexity, the parent company of Wirefly.

Simplexity boasts the position as the largest independent online wireless retailer, but Let’s Talk.com and Amazon Wireless also precede Google in the game. A spokesperson at Amazon Wireless said the company does not share figures on traffic or daily visits per a longstanding policy. A Let’s Talk spokesperson could not be reached for comment.

Simplexity’s Wirefly.com is its own branded site, but it actually provides the online technology behind some of the largest names in retail, including Best Buy, RadioShack, Target and Dell. On Black Friday and Cyber Monday last year, Simplexity sold a phone every seven seconds on average. Traffic to its sites was at an all-time high, with nearly double the number of visitors compared with the same time a year ago.

But the company figures Google’s entry in the space will only help online sales. “We think it’s a great thing for our segment because it gives some credibility to buying a wireless phone online,” Zeinfeld says.

For a long time, analysts have found that consumers typically do their research and price comparisons online, then go to a physical retail store to do their actual buying. About 86 percent of people buy their phones in a store, and only 14 percent buy online, which is more than it was a couple years ago, when about 10 percent were buying online, Zeinfeld says. While the trend is changing, he admits online buying makes up a small percentage of overall wireless sales.

Of course, Wirefly’s model differs from Google’s on several fronts. Wirefly offers devices that run across multiple platforms, including Android, Microsoft and Palm. “We have everybody with the exception of Apple and we have a wider selection,” Zeinfeld says. Wirefly also offers various rate plans, a 30-day return policy and no restocking fee. It even pays for the Fed Ex return of a product.

The company gets a commission from wireless carriers for activations and also operates in the high-margin accessories business.

Zeinfeld says that almost every time, you can get a better deal online than in a retail store. The HTC Eris, which happens to look a lot like the Nexus One, is free on Wirefly’s site. The Motorola Droid is $199 after rebate on Verizon Wireless’ site, but it’s $119 with Wirefly, which doesn’t use a rebate system so customers don’t have to deal with that. (Over at Letstalk.com, the Droid is selling for $129.99, and shipping is free.)

Despite December leaks about the forthcoming Nexus One with T-Mobile USA service, Zeinfeld considers the Motorola Droid a home run for Verizon Wireless. The Droid and the BlackBerry Bold 9700 were among its best sellers on Black Friday and Cyber Monday.
 
While Google has been the brunt of complaints lately in the Nexus One buying process and some customers report poor 3G connections with T-Mobile, Zeinfeld expects Google will get the issues ironed out. “If the wireless business was easy, everybody would be doing it online,” he says, adding he doesn’t think there are any two customers who have the exact same question or needs. “I think Google will figure it out” in time, noting that Wirefly, born out of what was known as InPhonic, had its share of issues in the nine years since it was founded.

Similar to what Google executives have talked about doing, the Wirefly site offers reviews and recommendations. It also offers Wirefly Learn, a consumer resource for wireless information.

Still, Wirefly doesn’t offer the Nexus One, and it can’t provide for instant gratification. Shipping is free and customers can get their devices the next day, but Zeinfeld notes they cannot get same-day delivery of a phone, which the traditional brick-and-mortar stores offer.