SEO the Secret Weapon in the E-Commerce Wars

by Dylan Downhill, 1/16/2006

The Opportunity

It has been well documented that consumers use search engines to research and buy products online. They read reviews and descriptions, analyze ratings, and research pricing as they compare products and vendors. A successful e-commerce site must offer a positive customer experience and build trust. However, in the nitty-gritty world of online retail sales, probably the most important success factors are the accessibility of the product and price.

It follows then that high rankings in the search engines are essential to the success of an e-commerce site, because high rankings make the products more accessible to the online shoppers. The site should rank highly not just for the general keywords that describe the business, but, ideally, all of the words that describe the products sold on the site.

The Challenge

There are two primary methods to achieve high rankings in search engines. One is to optimize your website naturally, i.e. organically, so that search engines rank it highly for your important terms on their search results pages. The second way to achieve high rankings is to buy Pay-Per-Click (PPC) ads that appear on search results pages. Which method drives the best traffic for online retailers? According to a recent study conducted by Jupiter Research and presented at the Search Engine Strategies New York Conference in March, 2005, "6 out of 7 clicks from the organic listings as opposed to Pay-Per-Click listings."

Clearly, high natural listings in the search engines are key for a successful e-commerce site.

In spite of this fact, many online retailers still focus exclusively on PPC advertising to drive traffic to their sites. The explosion in the popularity of PPC advertising for e-commerce sites is likely due to a variety of factors, including the ease of setting up campaigns, competitive peer-pressure, and the ease of budget approvals based on the lure of quicker returns on ad spend. The rewards of organic site optimization, although greater than PPC, appear over a longer period of time.

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