Re: Zavvi Not So Savvy
Just to put a different spin on it (and I don't work with Zavvi so don't know whether this is their angle but it is an angle I heard from another retailer before Christmas when Wii were in the same position) -
Affiliates can drive a considerable volume of sales - now normally for retailers this is a good thing, unless items are in really short supply - so if blue widgets for example are in short supply but high demand, as a retailer you don't want hundreds of visitors to your website looking for blue widgets if you only actually have five blue widgets to sell, as the end result is you get lots of disappointed visitors who not only do not buy a blue widget from you but think you are always out of stock of everything so never come back - so in those instances it is better not to have the visitor come to your site in the first place. Merchants cannot directly control what affiliates advertise so they use the only method they can, set the commission on those items to zero, to discourage affiliates from promoting those items. Now, ok, it's a risky strategy, as you can end up alienating affiliates altogether, but it's a question of which is worse, lots of disappointed potential customers or a few disgruntled affiliates.
I'm not saying it's a viewpoint I totally agree with, but thought it was worth presenting the argument as it was presented to me.
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