TulipTools Internet Business Owners and Online Sellers Community

Quote: Comparison shopping has played an increasingly important role in e-commerce since it emerged in the late 1990s. Initially, comparison shopping sites gathered pricing information from as many retailers as possible, showed shoppers where they could purchase an item at the lowest price and collected a fee from the merchant whenever a customer clicked through. And they focused primarily on easily compared products, such as consumer electronics, housewares and books.

Over the years, though, comparison shopping sites have had to become more sophisticated to remain competitive in what is becoming an increasingly crowded space. They’ve added reviews of both merchants and products, and they’re focusing not just on the lowest priced item but also on the best item that fits into a consumer’s budget. They’re also homing in on the quality of retailers’ service.

“Cheapest is not front of mind for a lot of consumers these days,” says Josh Silverman, general manager at Shopping.com, an eBay Inc. subsidiary. “We find the areas that get the clicks most often are not the cheapest. They’re the ones that have the best balance of value and trust.”...