Majority of Online Shoppers Visit Aggregator Web Sites First; Shopzilla Survey Reveals That 71% of Internet Shoppers Find Better Value and More Special Offers Online Than Offline

LOS ANGELES--(BUSINESS WIRE)--March 23, 2005--According to a recent survey of 923 online buyers conducted by BizRate Research for Shopzilla, consumers are flexing their wallets by aggressively searching online when looking for merchandise and deals, instead of shopping at tried and tested retail channels.

Most consumers (59%) are starting their shopping at aggregator sites (search engines, comparison shopping sites, shopping portals and auction sites) versus going directly to a merchant's site and taking the first price offered. This represents a 13-percentage point consumer shift towards aggregator sites in less than three years(a), when only 46% started shopping at aggregator sites and the majority (54%) of shoppers went straight to a merchant's site. This shift is probably because 87% of online shoppers are now comparing offerings of online retailers against catalog merchants and retail stores to find the best deals and items that are in-stock, with 71% of online shoppers reporting that they were able to find better sales and discount offers online than offline via a retail or catalog merchant.

Comparison Shopping is Prevalent

It is the American way to shop around, with 70% of respondents reporting they compare prices every time or most of the time they shop online, but some folks are still doing it the hard way. While 37% of online shoppers are very savvy and let a comparison shopping site do their deal-hunting for them, the majority (64%) still comparison shop the old-fashioned, time-consuming way by roaming from site to site looking for the best value. In fact, Internet shoppers will visit an average of four online retailers prior to choosing which site to buy from - while actively comparing prices (94%) - and then they visit the site of their choice an average of 2.61 more times before proceeding to checkout.

"Consumers want to save time and money, and comparison shopping sites achieve that objective well," said Chuck Davis, president and CEO, Shopzilla. "We're still in the early innings and many online shoppers still need to be exposed to its benefits."

Deal-Sensitive Categories and Other Methods Shoppers Use to Save Money

Books and clothing tend to be the two most popular categories online shoppers deal-hunt the most. Other common ways to search for deals include signing-up for sale newsletters (36%) and just waiting for sales (22%). For 74% of consumers, the biggest deal leading to a purchase is receiving a free shipping deal, or a special offer. On Shopzilla alone, from February 22-28, there were more than 1,000 free shipping offers, 504 special offers and 50 rebate and product offers, organized on one convenient search page.

Good Value vs. Brand Loyalty

Online shoppers are very rational when it comes to saving money. Forty-three percent will not pay extra from a retailer they like, if they can get it elsewhere for less. However, consumers exhibited a moderately high level of loyalty to their favorite brands with 34% of online shoppers reporting that they buy the same brand "most of the time" when shopping online, 62% reported buying the same brand "some of the time", and 1% reported buying their favorite brands "always." Top searched for brands on Shopzilla (February 22-28) typically span the consumer and electronic categories and include: Sony, Canon, Gucci, Panasonic, HP, Louis Vuitton, Nike, Motorola and Ralph Lauren.

About the Study Methodology:

The Online Shopper Deal Shopping and Value Panel Study, conducted by BizRate Research, a division of Shopzilla Inc., is based on a survey with a sample of 923 online shoppers from February 22-28, 2005. Survey respondents were selected from among a panel of 790,000 online shoppers. Respondents were 44% male, 56% female adults.

(a) denotes same study conducted December 4-9, 2002.

Note: All site data accurate at the time of issuing this press release.

About Shopzilla, Inc.:

Shopzilla, formerly BizRate.com, is the most powerful and easiest-to-use shopping search site on the Web. With an index of over 30 million products from more than 50,000 stores, Shopzilla uses ShopRank, a proprietary patent-pending algorithm, to help shoppers instantly find virtually anything on sale from anyone, anywhere on the Web at the best price. Shopzilla also features powerful comparison tools and BizRate consumer reviews of stores and products, the Web's largest and most trusted consumer feedback network. Every week Shopzilla prepares millions of shoppers to make smarter, more confident purchases and send them directly to the checkout page of thousands of online merchants. Shopzilla, Inc. also operates the BizRate consumer feedback network and powers shopping search for many of the Web's largest consumer sites including AOL, Lycos, Time Warner's RoadRunner, and many others. Founded in 1996, the Los Angeles-based company is profitable and privately held. For more information, visit www.shopzilla.com, the smarter way to shop.