Term
Price comparison site
A website that collects offers from many online shops and lets customers compare prices, availability and shop ratings. It is an important traffic source for e-shops, but they pay per click or sale and compete mainly on price.
Updated
What it means
A price comparison site collects offers from many online stores and lets customers compare prices, availability, delivery and shop ratings in one place. In Slovakia it is one of the biggest traffic sources for online shops, especially in electronics, household goods and cosmetics.
The shop sends the comparison site a product feed with prices and specifications and pays for visitors on a cost-per-click basis or by commission on sales. Shoppers there usually choose by price and rating, so competition for the lowest price is fierce.
Comparison sites are also an important venue for shop reviews. Customers receive a questionnaire after buying, and the rating appears next to every offer. Online reviews on the comparison site therefore directly influence whether a customer picks a shop even at a slightly higher price.
How it works in practice
Success depends on feed quality: precise product names with manufacturer codes, current price and availability, correct categories and images. A faulty feed leads to poor product matching, and the shop simply does not appear in the comparison.
Returns must be measured by margin, not just turnover. At a few tens of cents per click and low margins on electronics, selling through a comparison site can lose money. Shops should track cost per order by category and remove low-margin offers from the feed or lower their bids.
Besides price, shops can compete on delivery speed, free shipping, ratings and loyalty benefits. Many customers find a product on the comparison site and then visit the shop directly, so the brand and a good experience are valuable beyond the comparison site itself.
What to watch out for
The price on the comparison site must match the price in the shop, including conditions. Discrepancies between feed and website frustrate customers and can get the shop delisted. Discounts are also subject to the Omnibus Directive rules on showing the previous price.
Relying on a single traffic source is a risk. A change in the comparison site's algorithm, fees or terms can cut turnover overnight. A shop should also build its own channels, such as an email list, SEO and direct traffic.
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