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Amazon diversifies its offering with Product Ads program

Amazon (opens in new tab) has sent an email on Wednesday informing partnering merchants of its latest feature, the Product Ads which allows merchants to list products on Amazon and funnel consumers to their websites - as opposed to a traditional marketplace where the buyer would stay on Amazon's website.

Like Google's Froggle, sellers can upload product catalogues on where customers can view and click on them to access the sellers website.

Amazon will make money by charging the sellers on a cost per click basis (rather than a cost per sale) which resembles closely what Google own Adwords system.

Moving from being a pure retailer to an e-commerce hub will reinforce the relationship between Amazon and its partners, a relationship from which Amazon expects to derive more revenue.

As a comparison shopping engine, ProductAds will be a direct competitor to Ebay's own and to a lesser degree to Google's own Froggle search engine.

Blog website Techcrunch (opens in new tab) writes that Amazon will be leveraging on its position as one of the most visited e-commerce websites worldwide to grow a dense network of business partners which will benefit of Amazon's clout.

Désiré has been musing and writing about technology during a career spanning four decades. He dabbled in website building and web hosting when DHTML and frames were en vogue and started writing about the impact of technology on society just before the start of the Y2K hysteria at the turn of the last millennium. Following an eight-year stint at where he discovered the joys of global tech-fests, Désiré now heads up TechRadar Pro. Previously he was a freelance technology journalist at Incisive Media, Breakthrough Publishing and Vnunet, and Business Magazine. He also launched and hosted the first Tech Radio Show on Radio Plus.