Move over Ebay and Amazon: LiveDeal’s Prices found to be More Competitive
With the news of LiveDeal Inc.’s (NASDAQ – LIVE - $3.25 – Spec Buy) national footprint launch for its e-commerce platform, we thought it would be a good idea to compare prices of goods advertised on the LiveDeal site on April 16th with major online sellers Amazon (NASDAQ – AMZN – NR) and eBay (NASDAQ – EBAY - NR).
(We attempted to match prices with Overstock.com but there were no head-to-head comparisons that we found readily available.)
Not only were LiveDeal’s prices lower than these behemoths on 9 out of 10 products surveyed, but the price differential was substantial. As word spreads virally regarding the price disparities, it is likely that the Company could receive a flurry of traffic and business from price-conscious consumers.
As part of our ongoing due diligence, we compared the prices of 10 houseware products such as bowls, knife-holders, cake stands, etc. on the LiveDeal site and placed them side by side with an identical product on the Amazon site and found that in nearly all cases, LiveDeal’s prices were lower. In fact, while most of the sub-$5 items were 5-10% below the Amazon price, some of the price disparities were huge. Two products in the $11-30 range were more than 30% higher on the Amazon site, and one was more than double! The lone loser, a stainless steel mixing bowl, was priced 4% lower on Amazon than on LiveDeal.
Interestingly, we didn’t bother comparing all 10 LiveDeal products on eBay. Most of the price disparities on the handful of products we matched were all far worse than even the Amazon pricing by a factor of nearly two.
One factor that could enable LiveDeal to obtain and retain online customer loyalty is its timed “Live” offering, which was associated with each deal we reviewed. Price conscious shoppers tend to gravitate to the lowest prices. However, if the consumer believes that these prices are lower now and will be lower going forward because of the deal opportunities on the website, they will return again and again to purchase products. This cycle could lead to substantial business and revenue gains this year.
For more information, refer to our previous sponsored LIVE Reports, Updates and Hot Topic Articles by visiting http://www.GoldmanResearch.com/
Senior Analyst: Robert Goldman
Rob Goldman founded Goldman Small Cap Research in 2009 and has over 20 years of investment and company research experience as a senior research analyst and as a portfolio and mutual fund manager. During his tenure as a sell side analyst, Rob was a senior member of Piper Jaffray's Technology and Communications teams. Prior to joining Piper, Rob led Josephthal & Co.'s Washington-based Emerging Growth Research Group. In addition to his sell-side experience Rob served as Chief Investment Officer of a boutique investment management firm and Blue and White Investment Management, where he managed Small Cap Growth portfolios and The Blue and White Fund.
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