News Corporation’s digital arm News Digital Media has announced it will acquire the 48% of online shopping comparison site Getprice.com.au it does not already own, in order to get a bigger slice in the predicted jump in online retailing.
Getprice was founded in 2005 by chief executive Chris Hitchen, and chief operating officer Jared Oken, and claims to have three million users.
The site offers price listings for more than two million products from overseas and Australia retailers including a suite of featured retailers, such as Apple, Dell, Bing Lee, Clive Peeters, Ted’s Cameras, ABC Store, Big W, Rebel Sport and Officeworks.
Hitchen told SmartCompany this morning that News Corp bought into Getprice about three years ago as a way of “dipping their toe in the water” of the online retail space, and have continued to increase their investment.
“Having seen the growth and understood the model, they now really want to be a part of that and drive the growth,” Hitchen says.
The senior management team will remain with the business, even though the team has completed its earn-out arrangements.
“We were free to go, but we are excited with what can happen with News on board. There is sort of that professional interest to help it grow to the next level.”
A price for the deal has not been disclosed.
Hitchen says the big advantages for Getprice will come from leveraging off News Digitals traffic footprint, and New Corp’s relationship with big retailers, many of whom are just starting to implement eCommerce strategies as part of a new focus on multi-channel retailing.
“It’s an exciting period. You’ve got all these ASX companies set to write these big cheque books for their eCommerce strategies.”
One of the first changes Getprice will make under its new ownership is to redesign its website to accommodate what Hitchen sees the new dynamic on online shopping, where shoppers are looking to comparison sites to provide more than just the cheapest option.
Hitchen says Australian shoppers are particularly concerned about issues like warranties, refunds, after-sales-services and delivery times and costs. For example, while a shopping site based in Hong Kong might have the cheapest gadget, consumers will be worried about whether they get an Australian warranty as part of the purchase.
The site redesign will be about showing users information about warranties, delivery and refund as well as basic price data.
“We need to make sure we are getting them all the information to make the right purchase, making sure it’s not all about price, it’s about value.”
Hitchen says this should help attract large Australian retailers who have been nervous about appearing on comparison sites and competing just on price.
Hitchen’s other pre-Christmas priorities include rolling out the company’s successful iPhone app to other smartphone platforms, launching a mainstream consumer marketing campaign, looking for ways to link with other sites in the News Digital platform and continuing to develop relationships with the big retailers, who say are now starting to “get” online retailing.
“The research shows that with ROPO – research online, purchase offline – the consumer spends more often and spends more. That’s clicked now for Australian retailers.”
He even remains hopeful of getting Harvey Norman on board, despite the fact Gerry Harvey is a noted online-retail sceptic.
“I really believe that all those retailers – including Harvey Norman – will be working with Getprice very soon.”
James was the editor and publisher of SmartCompany and LeadingCompany for five years. He is now the Australian Financial Review‘s companies & markets editor, and a former BRW editor.
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