A price
comparison web site allows a person to find out about all products that are
available in the market, closest alternatives to the product he proposes to
buy, best deals and offers, features of the product,
reviews etc. in an easy manner. For example, any person who wishes to buy a
mobile phone may opt to browse in a price comparison web site as that site lists
out the latest mobile phones, best mobile phone deals, mobile phone offers, phones
based on specification criteria, price range, price comparison, warranty factors etc. He finds all the data he
needs to make a decision all at one place and he need not go back to the search
engine too look up the details about another option again and again.
Nowadays, these
web sites are gaining immense popularity as people are increasingly becoming
aware of the advantages of such web sites. Also, one major advantage for users
is that such web sites are free. The user need not pay any fee for browsing and
can look up some product or service even hundreds of times without paying any
fee. The main source of revenue for such web sites is from the retailers whose
products they list on the site. They have an agreement wherein a fixed fee is
paid on a periodical basis in exchange for display of the product on the web
site.
There are
several other methods by which these sites earn revenue. One method is through
the customer “click”, that is when a customer looks up a particular product on
the web site. The second method is through a commission from the retailer only
if the user actually purchases the product.
There is also
the concept of affiliate marketing. Suppose a user looks up a particular product
on a price comparison web site. If this web site directs the user to another
online shopping web site like Flip kart or Amazon, then the web site is paid a
fixed fee or commission usually up to twenty per cent.
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