Shoplocket partners with WordPress to enable blog-based ecommerce
techcrunch.com
techcrunch.com
A better looking, easier to use buy-now button doesn't have to increase sales by much to offset the additional cost. Besides, pricing models can change pretty easily.
Although I disagree with 2.5% per transaction + plus paypal fees. There are plenty of embeddable, widgetized, turnkey ecommerce offerings that are not trying to undercut every sale merchant is making.
Why would i want to give up extra 2.5% on top of payment processor's fees?
Percentage of sales works well when demand for tools exceeds supply.
It's the classic buy vs. build decision. Many companies do obvious things and charge money for it, yet succeed because they do a better job than you could do yourself for the same price.
PS: 2.5% off every hard earned sale? Ouchhh....
Marketplaces go for the 4-10% per transaction.. but provide payments and the actual exposure on their marketplace... Shoplocket is just providing a widget to integrate...
So ultimately, I only see these guys as going after the really (emphasis) really, small fishes...
99% of wordpress bloggers are just going to consume widget delivery bandwidth and make exactly zero sales. 1% who actually sell will go for services that cost them less. And these would be the ones who are either flat fee (possibly monthly) priced or free.
Today is the great business model to offer base functional services for free and charge for perks and extras.
http://en.support.wordpress.com/paypal/
Sure, it opens in a new window, but is that really such a big deal? You just pay PayPal fees this way...
Also, while it works, this WordPress 'integration' is more just a hack where a button image is linked to a checkout page.
1. Average WP audience is spammer, player, lousy useless blogger (80%) or wanabe affiliate for someone else.
2. WP is a platform to support, but not a platform to be based on.
3. Target people who sell stuff, not people who use wordpress.org blogs. Then % off sale starts to make sense. But then these people start not liking giving up % off their sales either.
4. Whats your USP? My wife sells high end dog collars through ECWID. Make me an offer. Don't just be "Yet Another". Be a "Wow!"
5. You email is a win. Keep doing stuff this way and people and businesses will turn your way big time. Why? Because anyone else is ignored by everyone else. People (businesses) LOVE personal attention.