June 9th, 2008 by Richard Lee
Internet Retailer 2008 – Comparison Shopping Engines
Internet Retailer 2008
Comparison Shopping Engines (CSE)
Shopping Networks (SN), Shopping Search Engines (SSE), or also commonly know as Comparison Shopping Engines (CSE), is another form of how consumers search online for products, with websites like eBay, Amazon, NexTag, Buy.com, Shopping.com, Shopzilla, PriceGrabber, Overstock, Yahoo Shopping, and many others.
Buying and Selling Big Brands still work well in Comparison Shopping Engines (i.e. gucci purses).
Price is a big factor, but the main factor. Support, quality, user ratings, etc. are key to increase your conversion rates from CSE’s. However, you can sort by price easier by price on CSE’s than you can on other Internet Shopping Channels.
Fundamental Principles:
CSE and other SEM = Assist Sales (multiple touch points before a buyer finally buys)
CSE = Lower Life Time Value (you must always be low cost leader to succeed in the )
Customer driven, do not over rely on automation (automate where it makes sense for tedious tasks, such as product feeds, but not your overall management, strategy and tactics. Many companies automate too much with software and miss out on opportunities.)
Customer Factors:
Customer Decision Process => Find product => Price Sort => Review Brand/Support/Credibility, etc.
Customer Acquisition (most expensive)
Customer Monetization (most profitable)
Life Time Value of the Customer
Multi-Channel / Assist (some users may use 20+ sources or exposures before buying your product, i.e. find you on search engines, reading product reviews, etc.).
Direct Response Marketer (catalog, etc.)
Research:
Hitwise -> find your online exposure online, by brand terms online
Affiliate Marketing Factors:
Affiliate Marketing is advertising your product by giving the advertisers a % of the revenue and no money for the Ad placement. A commission based way to promote your products.
Your own Affiliates are competing with you, even on the CSE’s and SEM/PPC
You need to set Terms & Conditions
Affiliates are in each channel (i.e. discount sites, urls, .com retailers, etc.)
Drive sales and clearance section to affiliate mktg
Use behaviorial targeting to find the right affiliate sites (transacting, talking to each other)
Top tier affiliates = High affinity with your brand, with your community
Main Point:
Understand where your incremental business is coming from