What Is CPO and How It Could be An Alternative to Ecommerce?
Looking for an alternative to ecommerce arbitrage? Read this article ASAP!
Ecommerce is not only about freedom and possibility to choose any business scenario you want, but suspense as well. You can try various profitable niches. Then, spend another eternity on product testing, in search of the winning one. And you have no guarantee that in the end you will find a winning combo of niche and product.
Okay. Let's imagine you have already found a niche and a product. And then what? Develop a marketing strategy, attract clients, run traffic on your shop, spend sleepless nights with FB Ads, collaborate with influencers, make creatives and come up with special offers and promotions…
Undoubtedly, ecommerce is going to flourish and is likely to undergo modifications. But you can see COD (aka CPO) model slowly coming back on the market.

CPO stands for cost per order. It's a model based on actual sales and quite similar to CPA model, but the target action is a purchase made by a client. Webmaster is paid a fixed fee for a placed order.

As a rule, CPO takes into account all the orders, including unpaid once. However, there are usually distinguished two types of CPOs: approved and delivered.
CPO approved is a model when a webmaster is paid for a confirmed order. Example: webmaster runs traffic, traffic leads some potential customers. Then, a customer fills in a form and waits for a call center to call him in order to confirm his order. Only after a customer has confirmed the order, webmaster gets his money.

In its turn, CPO delivered means fixed payments just for the fact of placing an order. One more example: webmaster runs traffic, traffic leads some potential customers, then there are placed orders, but call center do not call anyone in order to confirm. BUT when the order is delivered to the customer, webmaster is paid his fixed fee. By the way, in this scenario the web's statistics on the redemption percentage plays a significant role: if it is high, then this is a very significant argument for an advertiser for making a payment. A small percentage will make the advertiser think in the opposite direction.
To sum up: CPO is more convenient in terms of many parameters, including higher and more stable payments, easier payment conditions. On the contrary, for the advertiser it plays a role of a guarantee of receiving targeted traffic.
Made on