RealTime IT News

Go2Net Signs Mercata.com as Group Buying Service

Go2Net Inc. signed Mercata Inc. for the creation of a category in online shopping called group buying.

Available via the Go2Net Network's Shopping Channel, Go2Net's Group Buying shopping link is the first site of its kind to feature Mercata's patent-pending "We-Commerce" technology.

At the site, consumers can collectively harness their buying power in Mercata's group buying environment, called a "PowerBuy," to secure deals on a variety of name-brand products. The arrangement between the two companies also includes an advertising component in which Go2Net will prominently advertise Mercata throughout its network. Financial terms of the deal were not disclosed.

A PowerBuy is a limited-time buying opportunity, during which the price paid for a product drops over a period of several hours to several days. As more consumers participate in a PowerBuy, they drive the product price down through their collective purchasing power. Products include name-brand electronics, tools, kitchen products, sporting goods and gifts.

"This alliance represents a tremendous win-win-win for online consumers, Go2Net and Mercata," said Tom Van Horn, president and CEO of Mercata. "The Group Buying shopping category provides an exciting new shopping experience for consumers, expands Go2Net's Shopping Channel and drives a substantial volume of targeted traffic to Mercata's PowerBuys."

". . .the Mercata shopping experience. . .leverages the power of the Internet to get large groups of buyers together in a way that simply can't be accomplished off-line," said John Keister, Go2Net president.

Mercata, founded in September 1998, is a privately held company with funding from Vulcan Ventures Inc. Go2Net is a network of branded, technology- and community-driven sites focused on personal finance, search, commerce and games.