Ecommerce vs. CPO
Finding benefits of possible alternative to classic ecommerce.
There are three factors indicating that these days ecommerce is experiencing stagnation: the market is oversaturated, leads are expensive and conversions are unstable. They state the reasons for finding more reliable options. The CPO (cost per order) model is currently gaining popularity - it may lead to some serious competition between CPO and ecommerce in the future.
The CPO model is based on the number of actual sales. The idea is similar to CPA but the target action is a purchase made by a client. A publisher gets his fixed payment after the placed order. There are two types of CPO: payment for the placed order and payment for the confirmed order. Usually, all orders including those not paid are taken into account.
One of the advantages of this model for a publisher is fast and fixed payments. Besides, the profit of the publisher working on CPO is higher than that in the ecommerce. However, it is more challenging to work on this model, as it involves searching for sources of 100% target traffic. If the webmaster is unable to find the source of traffic, he has to bear the advertising costs and risks. Consequently, there is a real chance that the webmaster will spend his own money on advertising and not get paid at all. Oops!
How can this model be useful to the advertiser? Firstly, CPO ensures 100% target traffic, i.e. the advertiser knows that he pays for attracting customers interested in his products. Thus, it allows him to scale his ad campaigns. Secondly, if the advertiser is not satisfied with the quality of traffic, he won't pay the publisher.
Compared to the ecommerce, the CPO model is a more reliable one, since it combines benefits for both the publisher and the advertiser. On the other hand, ecommerce attracts those who dream of their own online-empire and large profits, because they are not afraid to invest and work in the negatives until there are win-win products and niche.
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