Retailers have warmly embraced this branded web site business model. First, it gives them access to the approximately 85% of web page views happening outside of the top ten portals. Second, the retailer pays the storefront provider on a Pay-for-Performance basis - retailer doesn't pay unless a customer places an order. The current customer acquisition model involves paying up front for advertising on web sites, which may or may not result in a customer.

Based on the segmentation of the Internet Sector in the Cisco-sponsored study by UT Austin [1] this concept of storefronts would fall under the broad classification of “Internet Intermediaries" - or E-commerce facilitators.  Internet intermediaries increase the efficiency of electronic markets by facilitating the meeting and interaction of buyers and sellers over the Internet. They act as catalysts in the process through which investments in the infrastructure and applications layers are transformed into business transactions.

Retailers participating in the storefront commerce networks include Amazon.com, eToys, PlanetRx, Garden.com, etc. The branded storefront is the first business model to figure out how to monetize the highly targeted but lower traffic at small web sites.

Vstore: is a privately held company dedicated to creating universal, personalized E-commerce opportunities. With Vstore anyone can create their own fully stocked, personally branded, online store for free in a few minutes.

An "affiliate comparison" performed on their site with Amazon (i.e. a comparison of being an Amazon affiliate versus owning ones own store ) resulted in the following:

·        owning your own store through Vstore.com would give you more commissions, better linkage, regular online reporting, flexible product selection and "own" customers not Amazon's customers who end up coming to you - i.e. you hold your own traffic. The customer service options include tracking order status,  checking problems, modification of sites etc.

The site provides the ability to choose all products for a certain theme in one click. i.e. sports - boating, basketball, baseball, etc. It has a free search engine registration and Meta tag management tool. VStore provides the largest commissions varying from 2-15% depending on product categories. It has enhanced security -using Verisign and data encryption to target segments of the market concerned about credit card transactions and the marketing strategy includes search engine submission and banner advertising.

Affina: provides services such as market research, database marketing, Internet services, customized technology solutions, closed loop lead management etc. The industries they serve include Consumer electronics & office automation; telecommunications, health care, transportation, packaged goods etc. They are organized around industry lines into business groups. Specific managers per business group are assigned to each site to help provide industry expertise and support. They have crisis management programs, provide a profit center operation and a sales support center, good marketing services, long term client partnership and technical support teams.

The site has the ability to custom select individual products. It provides greater flexibility to customize the site. One can choose five topic categories for store to be listed under and a tutorial for how to set up an effective site is provided which eases the process. The site is fast with a five-minute set up and high degree of control on the design of the site. Referral fees (Storefront owners) typically range between 3 cents and 15 cents.

Ubrandit: provides limited selection currently. The site will focus on branding financial and information content versus retail products. (Financial/newsletter/IRpackages is not available till end 1999).

As far as which is the better site - it is a toss up between Affina and VStore. Either is superior to affiliate programs for the reasons stated above and one can basically become an affiliate of 1000 manufacturers with one setup process. Affina's set up process is a little more difficult because it provides greater control over the product mix you can offer on your site. They also have more sophisticated marketing support so for the serious storefront owner Affina would probably be better.

VStore on the other hand provides very easy set up and basically the same range of products as Affina. For the casual web site owner that doesn't plan on actively marketing their site outside of the community it is meant to support - say a church web site for example - VStore is probably the best choice.