Amazon diversifies its offering with Product Ads program

Amazon 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 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.