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Many have heard of Yandex, and very few came across Chooos. Yet both companies came out with news this week. The Russian search engine has introduced a market place, enabling its users buy products online, rather simply browse the product search. This way the company capitalizes on its search capability and traffic to earn 1 percent from every transaction. This should enable Yandex Market to increase its revenue by $20 million.
Let’s take a look at Chooos. The Ukrainian startup seeks to leverage social network data of its registered users to help them buy products they like – together with their friends. The claim is that based on the social factors, product recommendations could be more effective, and brands would save money on expensive Internet marketing by placing its orders with Chooos. Chooos would charge between $1 and $2 dollars per order. That is an acceptable CPT for the brands but what is the CPT for Chooos (magic, perhaps?)
Yandex market cap is $11,68 billion, its target market with its market place – Russia. Chooos has just raised $350,000 seed funding from Imperious Group, and it aims to go global once the concept has been tested locally. Their value proposition is essentially the same for the brands: save on internet marketing in exchange for a small commission, and get more clients.
According to AIN.ua Chooos founder Pavel Matvienko believes that the product discovery based on Facebook likes will result in better conversions and user experience, whilst Facebook sharing will drive the user acquisition. Yet, the concept of F-Commerce has been all but abandoned by brands and small businesses alike. Let’s see if Chooos has something else up their sleeves, as 60 brands have already confirmed interest in joining the platform.
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