PriceGrabber Storefront Account: Commission Based Solution/Pay Per Performance vs. Pay Per Click Options For Online Merchants

I talked about this a few weeks ago, but several folks have asked me:

"Chip, what do you mean that shopping comparison sites are changing their pricing models and we should call them to find out their various options?"

Basically, all shopping comparison sites have two constituencies to please:

1. the consumer with an awesome shopping experience using great navigational methods, reviews, and other "bells and whistles" to make it easy for shoppers to find products easily at they price they want

AND

2. online merchants who are trying to reach those customers/shoppers/consumers in the most cost effective way possible.

Everyone involved realizes that there is a cost to do business, they all just want the cost to be reasonable so everyone can make a "fair" profit.

With the advent of many new shopping destination sites, with unique pricing models popping up each day, often offering better value for the consumer and online merchant -- from a price point of view --traditional shopping comparison sites have responded to online merchants' demand for choice in how they pay for a an ultimate sale.

And since online merchants are one of the constituencies shopping destination sites have to service, they are accomodating them with choice.  Those choices are: "pay per click/lead", flat fees, and/or a commission based structure.

I have found that there are very few shopping comparison sites today that only offer one method of payment, and if they offer only method you can bet that they are introducing the others as I type this blog entry and/or are introducing SKU level bidding options for the pay per click offerings to make that payment method more affordable.

Here is a message from PriceGrabber, one of the best and largest shopping comparison sites -- in terms of customers, eyeballs, and online merchants -- so every online retailer in the eTaildTail community can stay in the know.  The is reposted from October, as I thought it was important for everyone to know their options going into 2008.

From PriceGrabber -- 

"The Storefront account is commission based (as opposed to cost-per click) and was designed for individual sellers who may not have a site of their own. It is free to list on Storefronts; you only pay the $1 + 5.75 percent commission when an item you are listing sells. Once you register you will be assigned a new Storefront account manager who can be easily reached during working hours by phone, fax, email or instant message.

With a Storefront account PriceGrabber users will be able to contact you through our Question & Answer forum but will not be able to contact you directly before making a purchase. We do this to protect our buyers, and ourselves, from potential fraud that can occur when transactions take place outside of our control.

Merchant accounts are for those interested in volume sales. They use datafeeds to list products, are assigned an account manager, pay a setup fee to integrate a datafeed and are charged a CPC (charge per click) amount for each qualified buyer referred to their Website.

We just want to let you know that there are two feeds. We would like to have your permission to send you the storefront feed as an attachment, as well as to give you our contact information in case you have any questions.

Please feel free to contact us should you have any additional questions. We can be reached at 310-954-1040, business hours are 9am-5:30pm Pacific time."

You can also email them at info@pricegrabber.com

I hope the holiday shopping season is robust for all our online merchants and if you are having any troubles, or have quick questions to issues you may be having over the next few weeks during this holiday season, just email me at chip@eTaildtail.com and I will be glad to help.

We are in this together!

-- Chip