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Our Shopping.com Experience

A three-week trial was pleasurable but mediocre ROI

         

BroadLea

11:54 pm on Aug 5, 2004 (gmt 0)

10+ Year Member



Quick-read (stats as reported by Shopping.com):

Industry: home decor
Test length: 3 weeks
Clicks: 2383
Cost-per-click: 15 cents
Conversion rate: 0.67%
Amount spent: $350 (US)
Total sales: $438
Expense/Sales: 81%

We signed-up and paid the initial required $200 deposit. It took a bit of back-and-forth to get the data feed file just right, but after a few days we got the 10,000 products loaded. It took another few days for them to process, approve, and categorize the products.

I was very happy with the management tools, especially the Click Reports tool which shows all of the above stats on a single page for any desired time frame.

Unfortunately, our overall Dealtime/Shopping.com return on investment, at 81% cost of revenue just for the PPC, just wasn't good enough to continue. At times, it had been as good as 50%, which we could probably live with a while longer had it continued at that rate (a single large sale probably skewed things a bit). In contrast, Adwords PPC charges are, on average, about 12% of our sales tied to Adwords.

We will likely try Shopping.com again for a limited-run, now that our account is established and it is just a matter of making another deposit.

1Lit

4:19 pm on Aug 18, 2004 (gmt 0)

10+ Year Member



Dealtime have been proven time and time again to provide mediocre results. Stay clear.

Lord Majestic

4:23 pm on Aug 18, 2004 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I dealt with DealTime and now defunct ShopSmart (more known in Europe I presume). We tracked ROI and did some analysis on ShopSmart and found that we mainly sell much lower margins products then usually.

No wonder - these are price comparison services where the cheapest deal wins and everyone loses. Which brings me to strategic consideration that is usually ignored by short term marketers - why help establish these places so that they can become dominant power? The best thing, especially for a big brand, is to avoid them like plague.

Do not help in any way - if people know about you, and won't find you there, then they might go over and check your site. Getting into e-commerce only to get retail style middlemen is short-sighted.