No more Free overnight shipping at Zappos!

According to an email sent out to it’s affiliates by the giant online shoe store - Zappos, they are no longer going to offer free overnight shipping on the web-store.

We will no longer be promoting “Free Overnight Shipping” and we no longer will be promoting our price protection policy. Instead, we will be focusing more on our “free shipping” and our expanding selection of merchandise.

Earlier last year, Zappos started offering this facility to customers only a few days after Amazon announced their entry into the shoe retail business with Endless.com, a store owned by amazon that sells shoes and handbags, and ships overnight for free.

Clearly, Zappos seems to have come to realize that offering overnight shipping for free just because a new entrant in the market, albeit run by an e-retail pioneer, is offering such a scheme to get a share of the shoes and handbags pie, is just not profitable enough, even after doing Over $800 mm in sales in 2007.

Amazon, with is vast and diversified nature of business can afford to sell on very small margins. That, however, should not mean death for other e-retailers. IMO the future of e-retail is not in giant malls, but niche stores that know their product and can offer a quality of customer service that is at par with or better than big e-retail entities. By that, I don’t mean Amazon is the big brother or something, they are in fact doing a great job as a huge mall, and as endless - they run a fantastic niche store.

What I didn’t like is that Zappos quickly got afraid of amazon entering the market and started offering free overnight shipping, only to abandon the scheme later. If a niche store can’t afford the margins of their competition, they should work on bettering their product and service rather than copying their competition’s marketing tactics that they can’t handle.

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Google bans the usage adwords to sell links/google juice

In an effort to further curb the sales of links and pagerank for SEO, google has banned all adwords ads that are used to sell text link advertisements targeted towards selling a shortcut to better google rankings.

Before:

After:

this change in implementation is in accordance with Google’s existing AdWords and Webmaster guidelines. The AdWords guidelines stated “Advertising is not permitted for the promotion of … search engine spamming,” pointing to the webmaster guidelines for further definitions of unacceptable techniques… and the webmaster help pages state “Buying or selling links that pass PageRank is in violation of Google’s webmaster guidelines.”

[Via Google Blogoscoped]

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Shoppero.com - A Social Shopping Network that Pays Back

This is the new PPC - Pay Per Contribution.

I talked about NuVy.com here a few days ago, a social shopping network that pays users to upload video product reviews. Mashable, Today announced the launch of another social shopping network with a similar concept - to reward it’s users for contributing to the network - with cash.

Shoppero enables its users to write product reviews which get centrally bundled through the platform and can be advertised by users implementing adgets [widgets] in their own sites[and social network profiles, blogs, etc]. The resulting advertising revenues are being split among Shoppero.de and the users — The latter receiving 20% of the ad-revenues from the pages created by themselves and 60% of the ad-revenues generated by linking to the Shoppero portal. Reaching the minimum total of 25 Euros will trigger a payout to the user via PayPal at the end of the month.

This is (maybe not these particular websites, but the concept in general) the future of social networking - The basis of any economy, including what is being called the “Attention Economy” is, ultimately, Money. If users of a social network help them make money, the users MUST have a share in the revenues of the network.

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Nuvy.com: Social Shopping + Video Reviews + Affiliate Marketing:

There is a very interesting new social shopping / video reviews website that Jamie Birch just posted about on the revenews blog.

Nuvy - is a youtube clone plus a comparison shopping engine, that - pays - users to upload videos, that are product reviews.

The idea is this: Anyone, can review any product on video, and upload it on the website, the community votes on how good the video is, and based on that, the reviewer is paid a anything between $1-$10.

Video pages are very similar to youtube - but also a little more - there are three tabs below each video - “Product Description” , “Comments” and ” Where to buy” (so that covers the social part in a simple but elegant way)

There are two reasons why I like this:

First, Nuvy is making really fantastic use of the social media/web 2.0 as an affiliate marketing platform.

Secondly, they are actually paying “consumers who are also content creators” - you don’t see that a lot on web 2.0, but that’s what web 2.1 is for - if users create content that helps make a social media platform money, then the users should be treated partners in the business, the best way, IMO is to reward users according to their contribution - in cash.

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Update: I was reading costpernews a while ago, and read Sam’s 600th post there where he is upset at the pace at which affiliate marketers are adopting the new media. So … To cheer Sam up, who is a fellow believer in the salvation of Affiliate Marketing through Web 2.0, I send this Trackback.

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I’m back! (and the hookah cafe idea)

It’s been a busy last week, I was spending most of my days this last week travelling all over Bombay looking for a shop that Amit Lewis (an old friend and co-founder of a company we started back in 2000 “General Exports” that was to be an export company but eventually became yet another internet marketing company) and I can rent to start a “Hookah” cafe that will be in business sometime next month. Hopefully, I’ll be blogging again a lot more this week, and unlike this post, mostly about “e-Business 2.1″.

Smoking “Hookahs” or water pipes, has become the latest fad here in Bombay - Very famous with kids 15-25. especially those in the age group of 15-18. Because cigarettes aren’t sold to those under 18 in India, kids try out Hookahs, that contain what is called flavoured tobacco - which isn’t any tobaco, but an array of what is really various scents - ranging from cola and red bull to more fruity flavours like strawberry and apple, that one can smoke with the steam from water in the hookah pipe. A hookah in one of these cafes is sold for anything between $4-$10 on a smoke as much as you want in an hour basis.

Now, most Hookah cafes in bombay do it the traditional way - since they are a coffee shop and it would be a outright silly to not serve anything to eat or drink with the hookahs, they have their own kitchens, and chefs and cooks and all that. It’s a lot of cost to run a hookah cafe and if you’re new in the business, building up a brand may take a while and the salaries are a large part of the cost to run the place meanwhile.

We have thought of a slightly different concept with our hookah shop.  What we are doing here, is that we are making the place an “open platform” kinda like facebook. When looking for the shops, the places we short-listed had to meet one criteria: there has to be at least: one coffee shop, one ice cream shop, one restaurant and one bakery nearby. The menu of our coffee shop will contain of everything these shops sell - and will be co-branded. Unlike other restaurants, we will not only allow but encourage guests to bring “outside food” to the table - and they may order anything from one of these restaurants right from where they’re smoking their hookah - all we do is call up the restaurant(s) and have the food or beverage delivered to our cafe, track what we ordered from where, and collect a commission on each sale we send to any of these restaurants. Later on, if the place gets any popular, we plan to give access to local retailers of non eat-or-drinkables to the cafe and sell their stuff right there. Whether this concept works or not is to be seen - but it feels kinda cool to take what one learns doing business on the internet and put those ideas to use in, of all things, a suburban Bombay hookah cafe.

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Customer Support 2.1 - ClixConnect.com

Mitch Cohen, entrepreneur and undergrad student at McGill University in Montreal, Canada sent me an email last week.

Mitch writes:

I’m a long-time reader and subscriber of Final Tag. I wanted to shoot an e-mail over to you to let you know what I’m up to - I thought you may be interested because I’ve leveraged many of the teachings from your blog in my new “Web 2.1″ endeavor

(LOL @ “teachings” hehe … I just talk here, never thought these posts would be perceived as teachings, hehe. But thanks for the ego-boost.) Cool! :D. It’s awesome to know ideas are being extracted out of the what is posted here!

That’s the first email of it’s kind I have seen in my mailbox since starting the blog a few months ago.

Anyway, Mitch and his friend - also an undergrad students at the McGill university have started a “customer support 2.1″ web company called ClixConnect.

Here’s why it’s cool:

The thing about online shopping is that there is no time constraint. Stores are open when you want to shop. The live chat feature that many sites offer is a great way to make online shoppers feel they are interacting with real people and persuades them to make their buying decisions quickly. In most cases, however, the live chat feature is only available when a store employee is online. If one wants to shop at say 2 AM in the morning, smaller shops will have no live chat, and probably, the sale will happen ultimately at a larger shop where instant customer support is available at that time.

Clicxconnect enables small to mid sized internet companies, specifically e-retailers, to offer 24/7/365 customer support on their websites. The idea behind how this is done is pretty simple and unique - You take care of the customer support while you are online. When you are offline, someone from the clixconnect call center will take over and offer customer support on your behalf. Pricing, apart from a monthly fee is based on the number of customer support minutes provided by the clixconnect call center. Plans (with a certain number of minutes included with each) start from $79/ month - which most smaller e-retailers can easily afford to spend in order to attract much better conversion ratios and very satisfied customers.

That was only customer support 2.0. Here’s the 2.1 part:

In Mitch’s own words:

hat’s half the innovation. The hugely innovative component of ClixConnect (and the part that for which we were truly inspired by your blog) is that we also have a new technology in our software which enables automated chat recommendations for customers, based upon the product they are viewing. So say someone is looking at a red t-shirt on a website, an automated chat window can appear recommending a blue pair of pants to them.

That’s the “if you like this, you may also like…” feature as seen on amazon.com, but done by a human - well, at least it will seem to the shopper that a human is making the product recommendations. if the customer replies back, a real human takes over over. Cool, eh? the only problem here may be a scenario where a shopper wants to quietly browse the store and “people” keep interrupting her by recommending stuff - because of which the shopper gets irritated and leaves the store. That’d be too much customer support and that’s equally bad as too little customer support.

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Selling ad spots on your website as hourly time slots

I was browsing techcrunch the other day, and noticed the ad of a sponsor there, Adicate - an online advertising network with a twist.

Adicate has taken the television advertising approach to the world of online advertising - they allow publishers to sell ad-spots on their websites - by the hour.

Adicate claims to already deliver as many as 35 million impressions each day using this model.

Their pitch is also pretty convincing. An email from them that I recieved upon requesting more information states:

One of the advantages with Adicate TimeAds is that advertisers can show their ads at their own prime time. This means that a medicine company can advertise for stimulants daytime, diet pills around dinnertime and sleeping aid at night time. This also gives the advertiser the unique opportunity to stand by waiting in the advertising period and interact with the customer immediately.

Now I don’t sell medicine, but this logic can potentially be applied to many other areas. For instance, advertising a job-site just before the end of the work day, etc.

I haven’t signed up with them as an advertiser (or publisher) yet, so it is still to be seen what kind of statistics and targeting they provide to advertisers - which can be a very crucial thing with such a system.

Nonetheless, looks like an interesting new concept and worth giving a try, although I am not too certain if adicate will be able to introduce and create the CPH (Cost Per Hour) advertising metric as a standard in online media.

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Linkshare Announces Webservices

This is one area where CJ can claim to have done it first.

Finally, Linkshare has announced today, a webservices offering (API?) for affiliates that they are calling the “Automated LinkGenerator”

From Their Email Announcement:

Automated LinkGenerator creates LinkShare affiliate links for any product on a merchant’s site that offers LinkGenerator. This new feature provides the same functionality as the LinkGenerator tool in the Individual Product Links interface, without having to log into the Affiliate Interface to get your links. This new tool does not replace Merchandiser (LinkShare’s datafeed), but will be helpful for getting direct links from merchants that do not offer Merchandiser feeds.

If you are interested in using the Automated LinkGenerator, please email us at linkgen_request@linkshare.com to have this new tool enabled. Once you are enabled, the Automated LinkGenerator will be located under the LinkShare Feed Synergy Services area of the Affiliate Interface. To create an Automated LinkGenerator link, you will use a REST (Representational State Transfer) Web services to request links for a given merchant URL. You will then send a URL from the merchant’s site to LinkShare using the specified link format (see the Automated LinkGenerator Help area).  The URL can be sent through a browser, a tool like wget or curl, or an automated script.  For each URL provided, LinkShare returns a click link.  You can request up to 1,000 links within an hour.

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Affiliate Marketing at Yahoo Answers

We have seen affiliate marketers use new web 2.0 social platforms such as twitter and squidoo as a medium of promoting their websites - There is another social network I hadn’t previously taken very seriously as an affiliate marketing platform.

I just realized that affiliate markers are turning to yahoo’s answers service in a bid to drive traffic to their websites.

An affiliate I noticed is answering questions related to a particular niche and directing traffic to their website - what’s more, the affiliate is also using text-link-ads to drive traffic, not directly to their domain, but to the page on yahoo answers that has a link to the domain(that is how I came to know of this, a link was bought to a yahoo answers page on one of the niche blogs I sometimes write for).

This may seem like black or grey hat SEO to some, but I perceive it more as social media marketing, or what I sometimes call, “Participation marketing”. The affiliate is actively participating within the social media doing what he/she is expected to do, and making money in the process - without spending on domains, hosting, search marketing campaigns etc - driving probably what should be very handsome ROI.

On the negative side, I didn’t notice any disclaimer on the answers stating that the answerer owns the said website(s) for the purpose of profit - it would be a good idea to add such a disclaimer, just to be safe and not misguide the traffic.

Yet another example of smart affiliate marketing!

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Affiliate marketing? Get a fortune cookie at Sam’s new blog

Sam Harrelson, publisher of popular internet marketing blog Cost per news and CEO of PlanetBeta has just launched a brand new online publication for affiliate marketers at Affiliate Fortune Cookies.

Affiliate Fortune cookies is a “affiliate marketing tip/hack/tricks blog” that aims at “lowering the currently high threshold that keeps many people out of our industry.” - how this will be done, is explained in the blog’s first first post:

Affiliate Fortune Cookies is a blog where we’re going to be throwing out quick and easy tips, tricks and hacks to help out both newbie’s and old pro’s alike.

So, the experience level required to understand posts will range from absolutely none to fairly advanced understanding of algo’s and CJ inner workings. However, there will be something here for every affiliate marketer looking to stay up on the latest tips.

Definitely a blog I recommend subscribing to, I have already subscribed and placed it among the first blogs I read in my netvibes page. If you are an Affiliate-manager, I also recommend advertising on AFC, it’s only $250 for 2 months, and if an affiliate signs up to your program via AFC, you know that affiliate is going to be a top-performer!.

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