Shopzilla, formerly BizRate, recently entered the deal a day market with Tada, where Groupon reigns supreme. Amidst lower cpc revenue, Shopzilla wisely entered a space that generates significant revenue rather quickly compared to accruing cpc revenue over time. Additionally, Shopzilla’s connections to merchants large and small will bode well in its ability to sell this offering to new and existing merchants.

This move is significant because the majority of revenue for Shopzilla comes from cpc advertising, followed by incentive and market research revenue. This marks the first time where the company has created a new line of business and is conducting ecommerce directly with the consumer rather than directing them to a merchant site to checkout. Tada launched earlier this week with a deal from worldofwatches.com for a Invicta Auto Pro Diver Watch for $59.99 representing a 52% discount. The deal ended with 184 watches sold or $11k in total revenue. The current deal is for $30 worth of beauty.com merchandise for $15 reflecting a 50% discount.

What will be intersting is whether Shopzilla’s Tada solely focuses on ecommerce or whether it expands into other verticals and broadens the revenue potential. I also wonder if Shopzilla will instill part of its culture, fun in the new venture. Groupon incorporates fun into the site via the Groupon cat and their classic unsubscribe page. Lastly, many merchants will probably test the water of the deal craze; in the end all that matters is that it generates profits for Shopzilla, the merchant, and long term customers.
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Tags   BizRate  clone  ecommerce  Groupon  sample sale  Shopzilla  Tada