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.
