eDeals innovation pushes envelope in online shopping

DSN Retailing Today, Jan 9, 2006 by Mike Duff

TAMPA, FLA. -- The introduction of another new-generation online comparison engine called eDeals indicates once again that retailers confront an ever-more-sophisticated online marketplace, in this case, one that allows consumers to compare prices, couponing efforts and shipping deals among retailers with offerings from three bid sites.

Evolving out of an arrangement between developers and PriceGrabber.com, eDeals is a second-generation price comparison site but is going on its own with additional attributes. eDeals expands on the concept of the original price comparison site by aggregating common and unique services including travel, auction, best coupons and deals. eDeals permits users to look for bargains in distinct segments such as travel and gift giving using different search criteria like free shipping and coupons.

One feature that almost certainly will generate frequent visits is the capacity to search multiple travel sites at the same time. As anyone knows who has booked travel online, it may take several time-consuming searches to find the best bargain. To simplify such a search, eDeals centralizes the process.

While traffic generation is obviously important, more critical for retailers is the ability eDeals gives consumers to make value comparisons on more than the basic price. A simple feature of eDeals allows consumers to plug in their ZIP code and see comparisons that include sales tax and shipping fees.

Among the other product features eDeals emphasizes is:

* an integrated auction element in its central product/coupon search that immediately presents shoppers with deals from eBay.com, Overstock.com and Ubid.com all in a single window.

* simplified navigation that provides a variety of search options on the home page for people with specific interests including popular stores, new deals, compare prices, forum, expiring deals and free shipping deals.

* a 'top online deals' function listing what special Web-only bargains are available.

* access to the eDeals.com newsletter and an alert feature that will provide shoppers with bargains that are coming online.

The eDeals site launched in December with 40,000 consumers preregistered. Scores of retailers are already affiliated with the site including 1800-Flowers, Amazon, FootLocker, Nordstrom, Safeway, Sharper Image and Wal-Mart. Although some upscale retailers are listed under the eDeals stores listing, most are low-price providers.

Another key function that eDeals will offer is "price comparison social networking," said Chon Nguyen, chief technology officer and partner in eDeals. "Those are lists shared with friends and family."

In its simplest form, eDeals' social network will function as a gift registry, but with price comparison technology attached.

The social registry is one of those areas where retailers may find new opportunities to reach consumers via eDeals, said Nguyen. Retailers working witheDeals will get access to social network information. While some individual information will be withheld due to privacy issues, enough data will be available for retailers to provide individualized deals to shoppers.

In second- or third-quarter 2006, eDeals will add features to its site that will permit retailers to add or withdraw coupons over short time frames, so a store can put out a coupon or deal on an item and withdraw it the next day. Over that 24 hours, consumers searching the site will be offered the coupon. Thereafter, a deal can be withdrawn or modified to make it more attractive.

Potential advantages to such an arrangement are several, but one benefit is that retailers can use the site to move poorly selling items in-season by repricing them, packaging them with other deals or repositioning them. Retailers can deal with inventory issues affecting time-sensitive products as well. It also provides a real-world lab where retailers can work out price and positioning factors.

From the launch of Priceline.com, e-commerce pioneers have said that the Internet will create a new dimension in retailing, one in which supply and demand will be more closely aligned as marketplace factors and one that will eventually influence participants in the bricks as well as virtual world. The launch of eDeals may be another step in that direction.