Online Shopping is actually an electronic form of retailing that enables consumers to buy goods or services over the Internet with a simple web browser. The first type of online shopping in fact is called pay-per-click marketing, where advertisers can pay websites by displaying relevant advertisements on their sites. For example, an ad for a discount hotel in Denver may appear on a site containing information about the city and where it is located. When a visitor clicks on the ad, he gets to see a list of hotels in Denver. If he chooses to go to a specific hotel on the list, he will be directed to the advertiser’s site.
A second form of online shopping, as already mentioned, is referred to as pay-per-sale or PPS. This type of shopping occurs when companies sell merchandise directly to their customers at wholesale prices. This is also done by retailers. Online shoppers are simply paid whenever they purchase a product. An example would be that a website selling computers and accessories pay the retailer for displaying products on his or her site. In the case of PPS, the retailer agrees to pay only for items sold to his or her website. The benefit of PPS is that, since there are no ads on the website, there is less competition for customers to find a good deal.
Last but not least, there is another form of online shopping known as affiliate advertising, where merchants place links to their own websites on other websites like eBay, ClickBank and Amazon. The advantage of affiliate marketing is that it provides merchants with instant exposure to thousands of potential buyers. Some sites even have an option for the affiliates to select what percentage of the money they earn will go towards their site.