Why Sites like Amazon or Flipkart Never Use Adsense

Now a days their are many eCommerce giants in India which had tasted success within a couple of years from their launch. You can read about Top 20 eCommerce online shopping web portals of India to know about such sites. These sites generate lot of traffic and they could use such a huge traffic and convert them in revenue. May be monetizing with Adsense could increase some revenue for their company. But 'NO' these sites though they have pretty amount of traffic in millions they wont adapt such a method to increase their revenue. Amazon though it is the 9th most visited website in the world it generates income almost very close to what Google makes. It never took the means of using Adsense on its site, since it would be loosing their sales rather than generating income. So even Indian eCommerce sites like Flipkart, Snapdeal, Homeshop18 etc too wont adapt this method of generating income. Below you can read what happens if they use third party advertisements in their site.

1. Each click represents a lost customer :

If any eCommerce site starts to serve Adsense on their site it shows ads relevant to the terms on the page. If the page is about selling a pen drive then ads relevant to it will be shown and a person who looks at the ad may find a cheaper quote compared to the one he is viewing in the site so he just clicks on the ad and visits the other site. May be a click may generate an income from few cents to couple of dollars but the website looses a greater amount of profit. So every click represents a lost customer and indirectly the site has promoted sales for the other relevant website of same niche.

2. It dilutes their brand value: 

Now if a site like Jabong had placed Adsense ads it will now show ads of some other site like Myntra which means it is promoting some other brand. So total loss in the brand value, it is like having an own hotel and drinking coffee in the adjacent hotel. so serving third party ads will lower their brand value.

3. They can loose their Business:

eCommerce sites should concentrate on their business which is selling products. They are not advertising agencies, nor their websites are money making machines, they should always stay on their main motto. If they start serving ads on their websites it is like stepping out of their main business and landing in a side business of no value.

These are the main reasons why an eCommerce site does not entertain or use third party advertisements like Adsense, Adbrite, Affinity, infolinks etc. Do you also have something to say then just feel free to comment.