How do price comparison websites operate?

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Both people interested in establishing a price comparison website and those who are just naturally curious will definitely want to know how websites of this type work, which includes the methods of earning money and gathering data. This article will present some of them.

As for earning money, there are three main model of operations that the price comparison websites use:

cost per click (CPC)– as the name suggests, it means that the price comparison earns a few cents each time a client enters a product’s page

cost per action (CPA) – the price comparison website earns money each time a client decides to buy a product from an e-shop; it is not very popular because it makes it somewhat harder for price comparison websites to make earnings

hybrid model – as the name suggests, it is a combination of two models listed above

Another method employed by price comparison websites to earn money is selling advertisement space on the website. Obviously, the more popular a website is, the more money it can earn that way.

As for gathering data, price comparison websites get it directly from the sellers, who provide them regularly with such information as price, stock levels, product names, brands, product descriptions, image links and category details. Providing the price comparison websites with up-to-date is incredibly important for sellers, because otherwise they e-shops might stop being visible in the price comparison website.