Archive for January, 2007



Compare book prices — Web20 approach (Poll)

Starting with this post I am wading into the area of vertical price comparison engines — sites that specialize in certain niches.

Books, movies and music seem to represent a niche where a comparison engine is relatively easy to implement and as the result it is very popular among small-scale startups (credit card offers is probably another such example).

There are several popular old-timers in the niche but instead I would like to cover a few very little known companies that have been playing with some amazing web technologies and doing a few innovative things compared to the legacy heavy-hitters.

The most noticeable functionality that sets these sites apart is the ability to combine several items in a group (bundle) and compare prices for that group as if it was one item. Since these websites know how much it will cost to ship the bundle to you they can calculate the bottom line — weather you order the items separately or from the same store.

All of the reviewed here websites make a good job visually presenting the search results so that you have essential information up front with cross links to relevant items that might be of an interest to you. The kind of links are those to items by the same author (books), the same artist (movies and music), or from similar category.

Ugenie

Ugenie is probably the most functionality rich price comparison engine reviewed here. The tags and public bundles are there to satisfy the most demanding users and affiliate program is to catch the eye of webmasters.

Ugenie shouldn’t complain about lack of publicity. Covered by TechCrunch and other blogs it is the only vertical engine in the niche that I know to have attracted financing from the side. The startup has offices in California and Bangalore, India.

Pros:

  • During search users
    a) can exclude merchants by name or rating — in case I have merchant preferences, I can permanently exclude some from the search
    b) can exclude coupons — this is useful if you for some reason cannot use the coupons Ugenie is trying to apply
  • Textbooks integration — university students can list textbooks by entering the department and term information. Double checking the list before you order the books would probably be a good idea
  • Tags integration — I like this feature which helps me find relevant books. I didn’t like the fact that there is not easy access to the list of all tags. Since Ugenie doesn’t make use of categories this can be a problem if you don’t know what to search and just came to browse books
  • Public bundles — popular groups (bundles) that people create become public and can be viewed by everyone. This is a great tool to find relevant books which people often buy together. Kind of works similar to “Customers who bought this item also bought” you often see at Amazon

Cons:

  • In bundled search, no way to see all merchants — this is partially compensated by the ability to exclude merchants. Yet I would appreciate the full list and easiness to pick my favorite merchants that comes with it
  • No book rating and few book reviews — compared to the other two websites Ugenie doesn’t make use of Amazon API to display the book ratings and reviews.

Note, Ugenie is currently running a promotion. Spend $50 on books — get a movie ticket, spend $80 — get two. Promotion ends January 25, 2007. Tickets expire March 31, 2007. More details available from the company blog.

BooksPrice

BooksPrice is a self financed startup based in New York. The website is very nicely built and has simple and easy to use interface. Lucy Orbach, a co-founder, has recently sent me an email with details on new functionality they have just added: RSS price watcher (read below for details).

I liked the idea of internet browser toolbar that launches price comparison by selecting an ISBN and clicking on a toolbar button, but somehow it didn’t work in Firefox 2.0 which I am using. The link2us section explains how webmasters can install a BooksPrice branded link or a widget on their site or blog.

Pros:

  • During search users
    a) can select international shipping — might appeal to international users who buy from US merchants,
    b) can apply store membership — e.g. if I have Amazon prime membership (free shipping on all orders) Booksprice will take it into account when calculating the final price
  • Amazon wish-list integration — I wasn’t able to verify how it works but presumably you can find an Amazon wishlist by name or email and work off of the list when comparing the prices
  • RSS price watcherannounced just last week RSS price watcher is an alternative way to keep track of book price changes. Instead of signing up to an email alert you subscribe to RSS feed for a specific item.

Cons:

  • In search results: no sales tax estimate — in my example Walmart results came on top even though if sales tax is taken into consideration Walmart will not be the best deal
  • Incorrect results in bundle search with one-time use coupons, no way to exclude coupons — in my example TextbooksRus was quoted as having the best deal however the results assumed I could apply Google Checkout $10 coupon to each book in the bundle. This is obviously wrong since it is a one-time use coupon and can only be applied once to the entire purchase
  • Comparison cart section sometimes disappears and there is no link to access it — this is most likely a UI bug. As soon as I start adding books, the cart shows back up with all my books in there
  • No user accounts — this makes things a little harder for return users. You have to configure your preferences each time you come back. The default configuration has worked fine for me though

CompareBook

I was able to find very little information on CompareBook. The about page doesn’t say much while domain is registered to Alliance Enterprises LLC in Utah. CompareBook seem to be trying to set themselves apart from the competitors by offering the lowest price guarantee on the books you buy via the website.

The comparison engine has nice interface and makes even more use of JavaScript and AJAX than the competitors — though a little excessive to my liking. I appreciated the multiple levels of categorization which allowed me to browse books in a familiar tree-structured hierarchy. Just as BooksPrice the website owners lure webmasters by branded links and widgets.

Pros:

  • Price alert functionality — traditional email alert functionality. Receive an email whenever the lowest price for the book of your choice drops.
  • Lowest price guarantee — an interesting twist in the CompareBook marketing campaign. The price you pay is actually guaranteed to be the lowest at the time of the purchase. Certain limitations apply
  • Multi-level category hierarchy — makes browsing books similar to browsing files on your hard drive.

Cons:

  • Few search customization options — CompareBook has the least search customization options among the three websites reviewed here. Also I couldn’t find a way to tell apart new from used books in the bundle mode.
  • Slow search — as I was comparing these websites side by side the searches on CompareBook were taking longest to execute
  • No user accounts — CompareBook doesn’t support user accounts. However with so few customization options this is not much of an issue
  • Books only, no movies or music — unlike its competitors CompareBook compares only books. I would prefer to have single place to come for all these things.

Conclusion

The new breed of price comparison engines feature eye catching user interface and functionality that should be more than sufficient for an average bargain hunter. Each engine covers around 30 merchants and offers some distinctive features. Overall Ugenie seems to be the leader functionality wise however the difference is not that significant — it is surely not enough to pay back the $5 million financing they received last year.

Compared to the old-timers, none of the new websites seem to include eBay into the search. If this feature is critical for you go to AllBookStores or AddAll instead. Here is another observation. Pricegrabber, one of the horizontal search engines in my list, has a feature called Bottomline which in essence does bundling. However since this is not a specialized search engine the list of supported book retailers is much shorter.

I personally couldn’t make up my mind which website I prefer. I like the categories of CompareBooks, search customization of Ugenie, and the full list of bundled results at BooksPrice. I didn’t like the absence of sale tax estimate at BooksPrice, the absence of books ratings in Ugenie, and the fact that I cannot compare movies/music at CompareBook. Have you made your choice? Which website do you like?

Free live stock quotes from Google

MarketWatch reports that New York Stock Exchange has proposed a year-long pilot program to make real-time stock quotes available more easily to Internet sites. The program will make it possible for the likes of Google and Yahoo to display current trading prices of stocks online.

Google covered the news yesterday at the company blog and confirmed their intention to provide free access to live stock quotes from the entire family of Google web services including their search engine (tip: to get a stock quote, e.g. that of Google, type “quote:GOOG” in the Google search prompt).

Today, the NYSE has moved the issue a great step forward with a proposal to the SEC which if approved, would allow you to see real-time, last-sale prices across all Google properties including Google Finance, Personalized Google, Mobile, and of course, Google.com. It won’t matter if you’re on Wall Street or Main Street — you’ll have free, easy and fast access to real-time prices from NYSE on Google.

The program can start as early as the end of this month and will cost each company $100,000 a month for the access.

Sources:

Free international calls by calling Iowa

Update: As of February 17, 2007 the company is no longer offering free international calls. Read this post for more details.

AllFreeCalls

An Iowa startup called AllFreeCalls is offering free international calls to a long list of countries. The instructions on how to use it sound like a no brainer:

  • call this number in Iowa: 712-858-8094
  • dial the usual 011 + country code + destination number

According to Mike Arrington at TechCrunch this is why it works:

Iowa is apparently the only state taking advantage of an FCC kickback scheme that gives telco’s a portion of the fees generated from every inbound call to an Iowa number. So when you call the AllFreeCalls phone number, a portion of any long distance fees you are paying go to the company. The kickback is apparently authorized via the Universal Service Fund. These kickbacks are enough on average to more than cover the international outbound calling fees.

The company is a nice addition to the list of free telephony services I reviewed previously.

Source: Complicated Laws = Free Calls at TechCrunch

Baskin-Robbins buy one get one free coupon

It is Friday — my favorite day. The work week is almost over and here is a nice way to finish it. Buy yourself a sundae at Baskin-Robbins and treat your friend to another sundae for free.

The offer expires January 31, 2007. To redeem click on this link, print the page, and bring it to your local Baskin-Robbins store.

Baskin-Robbins coupon

Why Modoshi will beat DealsPlus

Over the past 2 years I have seen many social bargain hunting sites launch. Most of them had very distinct features and quality design. Yet their flawed marketing strategy made their life very short. If I were to list a few you would most likely have to admit that you never heard the names.

The new kids on the block have been more fortunate in the sense that they started when Digg was already popular and many Internet users have adopted the idea so well that they were not shy digging things anymore. However if you look closely at these websites you will notice that they all suffer from the same problem: they have not built an active community — a community of users who would find and digg up the deals — the kind of community that only FatWallet and SlickDeals currently have.

This is not surprising at all. Bargain hunting is a very narrow niche. It took Digg over a year to become as popular as it is. It will take even longer for these sites if they follow the Digg model.

Social bargain hunting is plagued

We all know that Digg is not community driven in the sense that less than 1% of users control most of the front page news. This is partially due to the algorithms Digg has put in place to favor the top submitters but mostly due to the fact that only a small percentage of users is capable of devoting themselves to the long hours of sifting through the news looking for that Digg-worthy scandal story.

It is obvious that all of the bargain hunting sites currently don’t have even a fraction of the half a million Digg users. I will bet my car that the owners of these sites keep them on life support by searching and submitting deals daily and maybe even by manipulating the ratings to bring the most promising offers to the top for better visibility (for that same reason these websites usually don’t show who voted for the deals. Some don’t even show who submits the deals, at least not on the front page).

The conclusion — social element is there mostly to satisfy your feeling of freedom, to feed your desire to be in control, to create an illusion that you can make a difference. At this time the social part doesn’t do a good job of building a supply of fresh quality submissions for these websites.

How can this be fixed? What can be changed to make the system work? What will compensate for the lack of active users?

It sounds like Modoshi has the solution.

Who are the folks that submit news to Digg? They are mostly teens — school children and college students. They have a very strong feeling of community, they have the time and curiosity to try new things, they are willing to do it for free or for a very small pay. Modoshi is a community where users who submit or pick the best deals are financially compensated. Right now each user only has one shot a day at winning the two daily prizes — $5 for submitting a new deal and $5 for digging an existing one — however as the site growth the prizes will grow as well, according to Modoshi co-founder Vaishali Anga. $10 a day doesn’t sound a lot at all however keep in mind that Netscape was able to sway the top Digg users with a mere $1000 a month — and working for Netscape sounds like a full time job to me.

Modoshi Contest

This is not all however. With each new deal the submitter has to verify 3 existing deals for accuracy. This just sounds like a terrific idea! Once the bugs are worked out the only thing that Vaishali will have to worry about is that his servers are capable to support the crowds of teens who will flock to play the game and earn that penny towards next Wii. By the way, about Wii, the top Modoshi user in January will get one for free — it is another contest the team is running and the prize selection only proves my guess at what the target age is. Seriously though enforcing verification should hugely improve the overall deals quality and as the result will make the site more attractive to those who come to use those deals.

Different game requires different rules

According to Vaishali when Modoshi launched in November it “started on the premise that it was high time contributors to the Internet community in general (who) got a share of the revenue”. The team quickly abandoned the concept though. “Pricier items such as TV etc got unfair advantage. Deal (submission) was based primarily on commissions, not quality”. The contests in contrast provide “a uniform model irrespective of what deal is posted, be it a $10 toy or $1000 hdtv”. Makes a lot of sense to me!

Now what about that rank that social sites display next to each entry? It usually more or less reflects the number of votes the entry accumulated. It makes perfect sense in the Digg case — how else can you judge the value of a news story? It sounds like for shopping deals you could use more data to calculate that number. The item price (compared to the average price for similar items), the item popularity (number of clicks or sales it produces), the submitter credibility — all of these can be factored in to compute the deal rank. Isn’t it brilliant? I wonder why no one else has done it before?

Conclusion

I have been playing with Modoshi over the past month or so and the more I play the stronger the feeling is that they have implemented the best marketing strategy to make a social bargain hunting site a success. I am not saying they are already the best — the site navigation and functionality could be improved quite a bit — but they currently have the best bets at coming out the leader. Sorry DealsPlus, you are not my favorite any more. ;-)




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