Time to Start Selling on Amazon? Earnings Report Says Yes

They say that even in the worst of economic downturns there are still a few winners, and in the current slide, e-commerce giant Amazon is looking like one of the bright spots. Amazon reported fourth-quarter earnings today after the market closed, blowing away analysts' estimates.


48 Home Depot stores will close; Nashville loses 1
Click Fraud Rate Continues to Rise
PlayStation 2 finally goes country with new game

eBay Alternative Upgrades, eBay Buyer Research

This Week in eBay Alternative News
eBid Readies Site for Growth in 2009Online marketplace eBid.net says it plans to reinvest last year's profits into US-based marketing to support new 2009 growth goals, plus the marketplace also has plans to work on features and options that will make the  site easier to use.

Search Engines 101: Paid Vs. Natural Search
48 Home Depot stores will close; Nashville loses 1
eBay Alternative News and eBay Biz Briefs

Click Fraud Rate Continues to Rise

Click Forensics, Inc. today released industry pay-per-click (PPC) fraud figures for the fourth quarter 2008 from the search advertising industry's independent click fraud reporting service — the Click Fraud Index.

Now in its fourth year, the Click Fraud Index monitors and reports on data gathered from the Click Fraud Network, which provides statistically significant industry PPC data collected from online advertising campaigns for both large and small companies across all the leading search engines, according to the company. Key findings from data reported for Q4 2008 include: The overall industry average click fraud rate grew to 17.1 percent for Q4 2008. That's up from 16 percent in Q3 2008 and from the 16.6 percent rate reported for Q4 2007. The average click fraud rate of PPC advertisements appearing on search engine content networks, including Google AdSense and the Yahoo Publisher Network, was 28.2 percent. That's up from the 27.1 percent rate reported for Q3 2008 and down slightly from the 28.3 percent rate reported for Q4 2007. Traffic from botnets was responsible for 31.4 percent of all click fraud traffic in Q4 2008. That's up from the 27.6 percent rate reported for Q3 2008 and the 22 percent rate reported for Q4 2007. In Q4 2008, the greatest percentage of click fraud originating from countries outside North America came from Canada (7.4 percent), Germany (3 percent) and China (2.3 percent).

"Based on the data we tracked in Q4 2008, it seems that the online advertising industry is not immune to the growing tide of cybercrime during this recessionary period," said Tom Cuthbert, president of Click Forensics, in a statement. "Both the overall click fraud rate and the rate of click fraud originating from botnets were the highest ever in Q4 2008. In addition, we've started to see old schemes like click farms re-emerge. Advertisers should pay close attention to these types of threats in their online campaigns throughout the year."

The Click Fraud Index publishes data collected from the Click Fraud Network, the industry's independent third-party click fraud detection service dedicated to helping companies more accurately monitor their online advertising campaigns for pay-per-click fraud.

Click fraud data is tracked and published on a quarterly basis for specific search providers, industries and trends. The service is unique in that it monitors online campaigns for click fraud by correlating data collected from search provider campaigns and the advertisers' own Web sites.

As Tennessee job losses soar, Bridgestone plans cuts
Search Engines 101: Paid Vs. Natural Search
eBay Alternative News and eBay Biz Briefs

eBay Alternative News and eBay Biz Briefs

Go Daddy Offers Merchants New Online Marketplace

Go Daddy just announced its new online Marketplace by inviting sellers to leverage the company's trafficwhich Go Daddy refers to as "millions" as a new customer base for online businesses. According to Go Daddy, the Marketplace will not be officially available until later this month, but those interested can join now for preferred product placement. In a nutshell, this new Go Daddy service will let online merchants promote and sell their products through a hosted Go Daddy storefront, similar to an eBay Store.




E-Commerce Payment Processing Beyond PayPal
Good product at right price is no longer enough

Search Engines 101: Paid Vs. Natural Search

When people become involved in Internet marketing, one of the issues that comes up are the differences between natural and paid search. Both strategies have their pros and cons and can be very effective as part of a marketing strategy.

Paid search is when your ad shows up at the top of a Google search or along the right-hand side of the results page. These are called 'sponsored ads' and are paid positions. Every time anyone clicks on one of those ads, the owner of the ad pays Google. This is also known "pay-per-click" advertising. The amount you pay is determined by several factors, including what you're willing to pay every time someone clicks on your ad.

Natural Search is when you type in a keyword. Links and descriptions show up on the left-hand side of the search result page. You wind up on the first page by having relevant content on your Web site and links to your site from other relevant sites. Getting to page one can be a long process. There are many companies that claim to be able to get you on the first page of Google. That may be true if the search term is very specific and no one else would ever search for it but you, or if they're using a "black hat" method that could get your site banned from the search engine.

Search engines such as Google, Yahoo and MSN are really just databases. When you do a Google Search you're not searching the Web, you're searching Google’s database. There are two ways to get into these databases. One is to submit your site to the different search engines. In 6 to 9 weeks the search engine will index your site. They capture key elements from the code on your page and your content. These are then stored in the database. When a user types a keyword into a search engine the algorithms determine the which links should be displayed as a result of your search.

The other way to get added to the search engines database is to have the search engine software find you through a link to your site from another Web site back to yours. The software, known as "spiders," will periodically "crawl" your site to see if you've updated it.

One important thing to know is that each page on your site is indexed individually, and each page stands on its own. The rankings are based upon the combination of correct meta tags, relevant content to the keyword they're trying to get rankings for and link popularity.

As long as the search engine can index the site, clearly read the meta tags and content, the better. An issue is when a site is built using Flash and little content (search engines cannot read or index "Flash" sites). Also, if the bulk of the relevant content is in PDF format, search engines cannot read the documents. If the search engines cannot index the relevant text there won't be any rankings.

The bottom line is this - paid search means you pay for your position. The benefit is if you have the funds you'll get instant traffic. Stop paying and the traffic dries up quickly. Natural search is free traffic but it's built over time. The advantage is that if done right, it can provide visitors for a long time to come.

Search traffic (paid or natural) is the BEST traffic to have because folks who are specifically looking for what you have are finding you. It doesn't get any better than that.

Terry Stanfield is a search-engine marketing (SEM) consultant with over 15 years of sales and marketing experience. His company, Clickadvantage, manages PPC and SEO efforts for his lead generation and ecommerce clients.

Adapted from Webreference.com.

Twitter connects travelers and businesses
E-Commerce Payment Processing Beyond PayPal

E-Commerce Payment Processing Beyond PayPal

Small business success in e-commerce is a delicate balance of technology, product, pricing, marketing and the all-important question: Which payment processing service should you use for your Web site?

Good product at right price is no longer enough
Search Engines 101: Paid Vs. Natural Search
eBay Alternative News and eBay Biz Briefs
Twitter connects travelers and businesses

Search Engines 101: Paid Vs. Natural Search

When people become involved in Internet marketing, one of the issues that comes up are the differences between natural and paid search. Both strategies have their pros and cons and can be very effective as part of a marketing strategy.

Paid search is when your ad shows up at the top of a Google search or along the right-hand side of the results page. These are called 'sponsored ads' and are paid positions. Every time anyone clicks on one of those ads, the owner of the ad pays Google. This is also known "pay-per-click" advertising. The amount you pay is determined by several factors, including what you're willing to pay every time someone clicks on your ad.

Natural Search is when you type in a keyword. Links and descriptions show up on the left-hand side of the search result page. You wind up on the first page by having relevant content on your Web site and links to your site from other relevant sites. Getting to page one can be a long process. There are many companies that claim to be able to get you on the first page of Google. That may be true if the search term is very specific and no one else would ever search for it but you, or if they're using a "black hat" method that could get your site banned from the search engine.

Search engines such as Google, Yahoo and MSN are really just databases. When you do a Google Search you're not searching the Web, you're searching Google’s database. There are two ways to get into these databases. One is to submit your site to the different search engines. In 6 to 9 weeks the search engine will index your site. They capture key elements from the code on your page and your content. These are then stored in the database. When a user types a keyword into a search engine the algorithms determine the which links should be displayed as a result of your search.

The other way to get added to the search engines database is to have the search engine software find you through a link to your site from another Web site back to yours. The software, known as "spiders," will periodically "crawl" your site to see if you've updated it.

One important thing to know is that each page on your site is indexed individually, and each page stands on its own. The rankings are based upon the combination of correct meta tags, relevant content to the keyword they're trying to get rankings for and link popularity.

As long as the search engine can index the site, clearly read the meta tags and content, the better. An issue is when a site is built using Flash and little content (search engines cannot read or index "Flash" sites). Also, if the bulk of the relevant content is in PDF format, search engines cannot read the documents. If the search engines cannot index the relevant text there won't be any rankings.

The bottom line is this - paid search means you pay for your position. The benefit is if you have the funds you'll get instant traffic. Stop paying and the traffic dries up quickly. Natural search is free traffic but it's built over time. The advantage is that if done right, it can provide visitors for a long time to come.

Search traffic (paid or natural) is the BEST traffic to have because folks who are specifically looking for what you have are finding you. It doesn't get any better than that.

Terry Stanfield is a search-engine marketing (SEM) consultant with over 15 years of sales and marketing experience. His company, Clickadvantage, manages PPC and SEO efforts for his lead generation and ecommerce clients.

Adapted from Webreference.com.

E-Commerce Payment Processing Beyond PayPal

Small business success in e-commerce is a delicate balance of technology, product, pricing, marketing and the all-important question: Which payment processing service should you use for your Web site?

E-Commerce Silver Lining Despite Holiday Sales Dip

While online shopping dipped 3 percent this past holiday season, some e-tailers experienced greater growth than their offline counterparts which proves e-commerce has cemented itself as a viable channel, according to a study released this week. New consumer data from comScore's latest survey illustrates that while consumers spent less online and offline, more people hit the Web to shop in November and December of 2008. "E-commerce had the softest season of growth that comScore has observed since we began tracking in 2001, which clearly reflected the overall consumer retail environment," Andrew Lipsman, director of industry analysis, told InternetNews.com. "However, the e-commerce still outperformed offline retail in several key sectors which suggests that it is a healthier retail channel that the alternative," said Lipsman, adding he believes the increased online activity indicates long-term health for the retail channel. The news comes as businesses continue to deal with a recession environment that has consumers thinking twice about purchases in light of layoffs and potential job instability. The comScore study compared e-commerce data to overall (online and offline) spending data from MasterCard Advisors’ SpendingPulse Unit between November 1 through December 24, 2008 and compared to the holiday season timeframe in 2007. The newest results confirm comScore's November forecast that shoppers would head online late in the season seeking more aggressive price cuts. And that's clearly what happened, for while consumers cut back in spend, more shopped online which boosted sales in several ecommerce segments. Healthy Stats for Sports and FitnessThe top growing online product category, sports and fitness, saw 18 percent growth compared to the holiday season of 2007. comScore attributes the growth to a continuing consumer focus on health and fitness, as well as a higher comfort factor in ordering high-priced equipment online. The second top category was video games and consoles, which saw a 14 percent growth year over year. New products such as the Nintendo Wii and PlayStation 3 contributed to the increase, according to the study. The third top online category was clothing and accessories, which grew four percent from 2007. The research firm said more aggressive discounts and promotions, as well as bad weather that prohibited travel to brick-and-mortar stores, contributed to the spike. The Dip in Online SalesCategories not faring as well included office supplies, which saw a 30 percent dip in online activity, and music and movies, which experienced a decline of 32 percent. Lipsman said consumer are likely relying more on digital devices such as smartphones and music players rather than CD players to enjoy music. Jewelry and computer hardware both had a 24 percent decline in sales, year to year, though consumer electronics fared better with just a five percent decline. Home and garden online sales dropped 14 percent and event ticket sales dipped 18 percent, year to year. Online bookstores saw a one percent drop, while toys and flower stores experienced a 7 percent dip in sales. The survey also revealed that consumers with higher incomes spent more this past holiday. There was a 7 percent increase in online spending within households of at least $100,000 in annual income, while all other income segments logged declines in spending. The biggest dip was within households earning less than $50,000 a year with a drop of 13 percent compared to a year ago. "Security and comfort is, for the most part, an issue of the past," Lipsman said of online shopping. "However, the more experience a consumer has making e-commerce transactions, the more likely they are to increase the frequency of purchasing online and buying more expensive items online, which can contribute to growth," he said. This article by Judy Mott appears courtesy of InternetNews.com.


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An eBay Seller's Guide to New Year's Resolutions

January is typically an active time for online merchants. After the crush of fulfilling holiday orders is over, it's a great time to reassess one's business.

Ina Steiner
This year, with the changes to eBay's platform, and the determination of many online merchants to go "multi-channel," January shouldn't just be active, it should be frenetic.


EBay Watch 2008: The Year in Review
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EBay Watch 2008: The Year in Review

There is no doubt that 2008 will go down as eBay’s most controversial yet. The auction giant rolled out one policy change after another — changes that drive eBay's focus on attracting bigger retailers.

The big problem behind these changes was – and still is – eBay's declining traffic and sales. The solution was announced by the new eBay-elect CEO, John Donahoe, tasked with overseeing eBay's year-long strategy to position the company to compete with popular fixed-price e-commerce destinations like Amazon and Walmart.com.

As we look back on the most controversial changes made by eBay in 2008, it is apparent that these Donahoe-inspired policies set the stage for eBay's new Large Merchant Services. The company quietly launched the beta program earlier this month, with seemingly little regard as to how these changes would affect existing sellers on the site.

The Boycotts of Early 2008: Target Donahoe

At the end of January eBay announced plans to lower listing fees while increasing fees sellers pay to eBay when an item sells. The company also told sellers they would no longer be able to leave negative feedback for buyers, a move that caused a ruckus among those who felt they would have no recourse for handling problem customers. 

Seller rebellion was another hot topic of 2008. Leading up to May we saw a number of grassroots boycott movements that gained a lot of publicity. One group even went so far as to call for the resignation of John Donahoe, which went largely ignored. The boycott actions from earlier this year were a big deal mainly with small to mid-sized sellers, but even in the face of a public boycott, eBay still rolled out its policy changes.

Donahoe's hand will continue to play out into the coming year, regardless of how many sellers he rankles with policy changes. How long he remains at the helm in 2009 is a topic debated in many blogs. E-commerce blogger, Randy Smythe of My Blog Utopia is predicting that Donahoe will probably get at least two more quarters to turn eBay around, and at most a year. Many industry watchers agree he is on the way out, but how much longer he has is up for debate.

Media Fees and Max Shipping Limits

EBay first unveiled a new pricing structure for its Media category which drastically lowered insertion fees, with the bulk of the fees moved to the back-end of a sale. Later, in September, the company adjusted fees again to reduce start-up costs for sellers by lowering the listing fee for all items sold in the fixed-price format.

Sellers were vocal about the fee changes and some even called eBay a snake for “hiding” final value fee increases behind lower listing fees.  What some sellers didn’t realize is that this new fee structure is not a new idea at all. Many platforms, including Amazon, already offer pay-per-performance based systems.

This new fee structure basically lets sellers who have been hesitant to invest in eBay integration before this year. The new structure lets them experiment with the eBay platform with lower upfront costs.

EBay also set limits on shipping charges for its most competitive categories: Media - Books, DVDs and Movies, Music and Video Games. Sellers listing in these categories were required to offer at least one shipping option within eBay's specified limit.

Lorrie Norrington, president of eBay Marketplaces, said that enforcing shipping limits was designed only to protect buyers from excessive shipping charges, but eBay's focus on catering to large retailers was also in play. There is no point in opening your platform to large merchants to list if buyers will still choose other destinations because the overall purchase price (item plus shipping) is cheaper.

EBay's Other Mission: Appease and Protect Buyers

Over the years eBay has become almost synonymous with the word scam. News reports of eBay rip-offs are reported on a daily basis. Despite the company's security efforts there is no denying that there are plenty of active scammers on eBay, which isn't helpful when you’re trying to entice big brands to your platform. EBay moved into action mode in 2008 – from masking buyer IDs to initiating safe computer policies ‑‑ to make its platform safer for buyers.

The new Detailed Seller Ratings (DSR) policy shook sellers to the very bone. DSR is a policy that has sellers worried about how frequently their items will be seen in Best Match searches. In August eBay made DSR matters worse by announcing a new DSR minimum that required sellers to maintain a minimum 4.3 DSR rating across all four DSR categories (item as described, communication, shipping time and shipping and handling charges) over the prior 30-day or 12-month period — depending on volume — to list on the site.

Some sellers have called the minimum a 'scare tactic,' but there are also sellers who say that DSR minimums will keep unsavory sellers off the site, which is a positive thing for honest merchants trying to turn a profit on eBay.

After months of controversy it's unlikely that we'll see DSRs being thrown out any time soon — in fact it's more plausible to see eBay toss its basic positive, neutral and negative style of feedback once the dust settles and sellers get used to living up to tough DSR standards.

Tough Decisions in the New Year

By creating policies and tools to attract large retailers, eBay also expects to become a more attractive shopping destination for consumers looking for cheaper online prices and fixed-price, instant-purchase gratification in a bad economy.

The big decision for large retailers going into 2009 will be deciding if eBay is a good fit for their retail brand. Since eBay is often associated with scams, lawsuits and brand fraud, many retailers will not be ready to use this new selling channel right away. Also, many large retailers will not want their entire product catalog sold at discount prices on eBay.

Sellers that fall into the too-big-to-be-small but too-small-to-be-big category appear to be left without a life ring, but that is not necessarily the case. Auction sellers have the same home on eBay as they have for some time now — and thankfully eBay didn’t mess around much with auction policies this year. On a more positive note for sellers, more big brands and more products in fixed-price format can help increase traffic to eBay which will benefit all sellers, regardless of their inventory size.

Sellers with smaller inventories may not get a crack at the coveted Diamond PowerSeller perks, but they will find opportunities unavailable to large retailers. Larger retailers will be slower in reacting to and meeting changing market demands on eBay, and smaller sellers will have fewer restraints and more flexibility in setting their own pricing and discounts.

Will Sellers Sink in ’09?

Only a few things are certain. For merchants who are not already using Amazon, this platform is looking better by the minute. This year, sellers who never heard the phrase "eBay Alternative" before this year have their items listed on multiple sites.

Many casual and part-time small sellers — those who use eBay to supplement their personal income — simply find the new rules and policies too much of a hassle. It is this group of community-minded sellers who will continue the fuel the growth of many non-corporate alternative marketplaces in the coming year.

EBay’s focus on attracting large retailers and consumers who want instant and cheap purchase gratification is not going to slow in the coming year. There is no doubt that sellers will be swimming — with some drowning — in eBay’s changing e-commerce tide in 2009.

Vangie Beal is a seasoned online seller and frequent contributor to ECommerce-Guide.com. She is also managing editor of Webopedia.com.

Shoppers get break on return policies
eBay Embraces Big Sellers, Cyber Monday Trends