Big Business Deals – Microsoft offers cash rebates to shoppers at eBay

One more big business deal at eBay - This one may actually help. Live Search

The Silicon Valley/ San Jose Journal reports a deal has been made between Microsoft and eBay.  Shoppers using the Microsoft Live search engine to find products on eBay and elsewhere will be offered cash rebates after making qualifying purchases.

Whether this is a desperate effort for Microsoft to gain ground against Google in the search space is a matter of speculation.  The cost per-action fee will certainly be a worthwhile investment for eBay.

Update: Advertsing Age has a quick 3 min video with more information regarding this deal

Article As Published:

In a push to gain ground against Google Inc. in the Internet search field, Microsoft Corp. said it will offer cash rebates to shoppers who use its Live Search program to buy products.

The Redmond, Wash., computer giant (NASDAQ: MSFT) said 700 merchants have signed on to its cashback program, which gives consumers money back on some product purchases through its live.com Web search service.

Microsoft said companies signing on so far include San Jose-based eBay Inc. (NASDAQ:EBAY).

The program covers 10 million products sold online. Rebates vary depending on the product; for example, book rebates range from 2 percent to 10 percent while shoe rebates range from 5 percent to 25 percent.

Participating merchants in the program will pay Microsoft a cost-per-action fee every time a consumer buys one of the merchant's products and Microsoft returns the fee to the customer in the form of a cash rebate.

The service is part of Microsoft's efforts to attract more users to its Internet search service and better compete with Mountain View-based Google (NASDAQ: GOOG) and Sunnyvale-based Yahoo Inc. (NASDAQ: YHOO) -- respectively the number one and number two Internet search providers.

Silicon Valley / San Jose Business Journal

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