In its second-largest acquisition, Amazon buys the company for $970 million.
In an effort to broaden the amount of information it provides shoppers, the shopping search engine expects to lure more e-retailers with larger numbers of searchable products by lowering the fees it charges merchants.
In a move to become the biggest source of product information for shoppers, DealTime is lowering the fees it charges to merchants for search placement and product listings. "Our goal is to provide the most competitive retailing experience for the shopper, and the only way we can do that is include as many online e-retail sites as possible," Iggy Fanlo, chief revenue officer, tells InternetRetailer.com.
DealTime, which already offers information on products sold by more than 2,200 online merchants, wants to make it easier for all e-retailers, regardless of size, to get their products connected to DealTime.com. The site lets shoppers view comparisons of products from multiple retailers, such as by price and product specifications, as well as read product reviews written by other shoppers. 300-400 new product reviews are added to the site every day, Fanlo says.
To increase the information such as reviews and comparisons available to shoppers, DealTime is seeking to involve more merchants while making it more cost-efficient for them to expand the number of product SKUs they make searchable through DealTime.com, Fanlo says. DealTime has lowered its search placement minimum bid price -- the lowest price retailers can offer to be listed and ranked in the site`s search results -- to 30 cents per click for computers, office products and consumer electronics, down from a range of 30-40 cents; and to 5 cents per click for all other product categories, down from a range of 8-25 cents.
At the same time, DealTime has begun offering for the first time a volume discount for the number of product SKUs that retailers make searchable through it site. The discount is 1% for every 5,000 SKUs. A retailer that places 100,000 SKUs on the site, for example, would get a discount of 20%.