Comments on: WinBuyer secures partnerships with leading comparison shopping engines, raises $6.9 Million http://www.vccafe.com/2009/11/23/winbuyer-secures-partnerships-with-leading-comparison-shopping-engines-raises-6-9-million/ Israeli Tech News. Global Perspective. Thu, 18 Mar 2010 12:47:29 +0000 http://wordpress.org/?v=abc hourly 1 By: gmugliston http://www.vccafe.com/2009/11/23/winbuyer-secures-partnerships-with-leading-comparison-shopping-engines-raises-6-9-million/comment-page-1/#comment-17195 gmugliston Tue, 24 Nov 2009 14:43:42 +0000 http://www.vccafe.com/?p=2236#comment-17195 Thoughtful comment.<br><br>Re your first point, the idea of customers rewarding retailers is substantiated above insofar as WinBuyer's research, carried out by the e-tailing group, indicates that "if consumers leave a retailer’s site in pursuit of a more attractive deal, 78% would return to the retailer when shopping for items in future." While metrics beyond survey data would be useful, this does suggest that consumers view retailers which adopt the OCP application in a positive light.<br><br>Re the pitfalls of ubiquity, despite the impressive adoption levels this is not likely to be an issue in the short-term, given the size of the online retail market. OCP is not so much about differentiation as it is about acknowledging that comparison shopping is fundamental to the online shopping experience and facing up to this reality. If your customers are going to seek out comparative pricing information anyway, it is surely worth empowering them with this information in the context of your own site. This leaves customers to at least consider, as you suggest, the non-price-related aspects of the online shopping experience. Thoughtful comment.

Re your first point, the idea of customers rewarding retailers is substantiated above insofar as WinBuyer's research, carried out by the e-tailing group, indicates that “if consumers leave a retailer’s site in pursuit of a more attractive deal, 78% would return to the retailer when shopping for items in future.” While metrics beyond survey data would be useful, this does suggest that consumers view retailers which adopt the OCP application in a positive light.

Re the pitfalls of ubiquity, despite the impressive adoption levels this is not likely to be an issue in the short-term, given the size of the online retail market. OCP is not so much about differentiation as it is about acknowledging that comparison shopping is fundamental to the online shopping experience and facing up to this reality. If your customers are going to seek out comparative pricing information anyway, it is surely worth empowering them with this information in the context of your own site. This leaves customers to at least consider, as you suggest, the non-price-related aspects of the online shopping experience.

]]> By: jelpern http://www.vccafe.com/2009/11/23/winbuyer-secures-partnerships-with-leading-comparison-shopping-engines-raises-6-9-million/comment-page-1/#comment-17192 jelpern Tue, 24 Nov 2009 09:44:42 +0000 http://www.vccafe.com/?p=2236#comment-17192 Interesting company, but this post doesn't really make the case for why retailers should "embrace" comparative pricing. The idea that customers will reward a site for the "favor" of simplifying their price comparisons is interesting, but not substantiated here. Further, if most or even many sites does this (and it sounds like to WinBuyer's credit they are doing a good job of getting merchants to embed their tool), the resulting ubiquity will take away any differentiation that each site achieved by offering the future, and with it any "good will" points with their customers. The only way I see this as serving retailers is if they are able to say to the customer, "Sure the other guy has a lower price, but here are the reasons my price is justified: [better service, recommendation engines, etc.], so save yourself the time and just buy with me." Otherwise it looks like retailers will lose out again in the end. Interesting company, but this post doesn't really make the case for why retailers should “embrace” comparative pricing. The idea that customers will reward a site for the “favor” of simplifying their price comparisons is interesting, but not substantiated here. Further, if most or even many sites does this (and it sounds like to WinBuyer's credit they are doing a good job of getting merchants to embed their tool), the resulting ubiquity will take away any differentiation that each site achieved by offering the future, and with it any “good will” points with their customers. The only way I see this as serving retailers is if they are able to say to the customer, “Sure the other guy has a lower price, but here are the reasons my price is justified: [better service, recommendation engines, etc.], so save yourself the time and just buy with me.” Otherwise it looks like retailers will lose out again in the end.

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