Google Checkout will only automatically mark orders for Digital products as Shipped and Archived, because we will automatically deliver the digital product to your buyer online, so there is no further action you need to perform manually to complete the order.
Orders with tangible items (products with Shipping/Buyer's Address enabled) or intangible goods or services (products which are neither tangible nor digital) will need to be marked as Shipped manually in your Google Checkout account, then Google Checkout will send the buyer a payment receipt email and inform our system of the completed transaction, so we can finish processing the order for you.