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November 20th, 2008, 02:44 PM #1Web Sites Wage Holiday Price Wars (article in Today's NYTimes)
Found this article in the New York Times today: http://www.nytimes.com/2008/11/20/te...g.html?_r=1&hp
It basically talks about how online stores are slashing prices in fierce competition with each other, even if it threatens their profit margins. It also talks about how sales are dropping across the board for both online and offline retailers, and that free shipping is a painful promotion piece for a lot small e-commerce businesses (who need to offer it to keep up this season).
I know the economy, and how it will affect affiliate marketing and online shopping in general, has been a big topic for all of us. But I still feel confident that whatever shopping will be done this season will be done more so online and at affiliate marketer sites. I've seen literally dozens of magazine articles and newspaper pieces, tv segments, etc. on how consumers can save this season by going online and looking for deals. So I don't think it is as dire as this article makes it out to be.
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November 20th, 2008, 03:26 PM #2
Part of this article actually gives hope to those of us who are trying to build sites with loyal members who continue to come to us to find products, deals, and ideas rather than using the search engines:
"To exacerbate matters, a major expense for online retailers seems to be rising: the cost to advertise products on the search engine Google, the source of considerable traffic and visibility for most e-commerce sites."
It seems that if you can offer a merchant a way to get to your members/visitors that is cheaper than search, you might be in a good position.
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