Comparison websites in China analysis

• Business Model

• Main Player

Business Model

Search engine VS. Publisher

Product Search engine- shows photographs of relevant products. Searches can be restricted by price, type of good, and retailer.

Pure product search engine- Not directly or indirectly dealing with agency or online retailer.

They offer it as a service to bring more traffic from shoppers.

Retailer

Compare price

Google’s Ads

Yahoo’s Ads

Retailer

Retailer

Publisher

Compare price

Main comparison publisher in USNot directly or indirectly dealing with agency or online retailer. They offer it as a service to bring more traffic from shoppers.

PublisherRetailer

• Cashback

Publisher

CPS deal via cashback

Big issue of this way

Chinese Publisher60-80% of comparison sites use cashback to hook people attention in China, even online payment firm do the same thing.

China Publisher

Feb 2008 Dangdang made a announce that don’t allow cashback any longer for CPS after amazon China changed its policy for cashback.

Cashback abuse brings a great number of online shoppers making orders via publishers’ instead of official site.