The software monster, Microsoft is all set to launch its new product “MICROSOFT LIVE SEARCH CASH BACK”. This program will offer “Cash Back” to online shoppers who search products on LIVE Search engine and then make a purchase. There will also be a major shift in the advertising model from CPC to CPA, which would entice online advertisers since they have to pay only if the purchase takes place. Unlike pay-per-click, the advertiser need not pay if the visitor does not complete the transaction. Microsoft's goal is to attract large amount of visitors and online advertisers so that it can give a formidable competition to Google and gain greater search engine market share.

Microsoft, eBay & Paypal have joined forces to provide this service.

You can see the screen shots given below.

Some of the major product categories presented on the cash back offer is Photography, Jewelry and Watches, Clothing and Accessories, Home and Garden. Some of the top ecommerce retailers are listed from each product category like Tiger Direct, Circuit City, Adorama, Zappos, Home Depot, etc…

Each merchant has a different cash back offers. Example

http://search.live.com/cashback/products/offerings/18002/5632602

A small percentage of the product’s price will be awarded to the consumer through cheque, direct back account deposit, or even to the paypal account, provided the consumer has a paypal account.

I believe there will more competition among retailers in fixing the product price, cash back offers, setting up commission, etc…

Refer the above screen shots to view merchants cash back offers.

Adorama – 3%
Digital Corp – 2%
Electronica – 5%
Central Digital – 4%
Circuit City – 5.0%
Digital Foto – 4.0%

The LIVE SERCH CASH BACK OFFER looks promising for online consumers in terms of getting money back after purchase, which is in line with corporate bank’s credit card purchase cash back offer. Online merchants no longer need to pay up for unnecessary clicks and incomplete transactions.

Will Microsoft be able to compete with Google using this new strategy? The Software Monster has fought with the Search King time and again, but emerged wounded every time it tried to acquire the chunk which King holds in the search engine industry. Will the war end differently this time? Let us wait and watch for THE ULTIMATE VICTOR!