As we told you last month when discussing the program's early successes, Cashback works by giving users a certain amount of money back every time they search for an item and then buy it from a participating store. But some users have found the opposite to be true: Retailer cookies trigger jacked-up prices for some items, causing a phenomenon one man calls "negative cashback." How much do Bing users stand to lose? Read on, and brace yourselves.

Essentially, certain products from certain websites appear through a Cashback-enabled browser to be a certain price. Yet, if the same user visits the same site at the same time from a non-Cashback browser or machine (or if he deletes his cookies), the price is sometimes drastically different in a way that benefits the end user not a bit.

As one user very succinctly put it, "If I go directly to butterflyphoto.com, I pay $699 with 0% cashback. If I use Bing Cashback, I pay $758 with 2% cashback, or $742.84. Using Bing cashback has actually cost me $43.84, giving an effective cashback rate of -6.27%."

We did the same search, and we saw the same results. Here's our Bing Cashback screenshot from an Internet Explorer window:

And here's the same product on the same website in a Chrome tab:

As a side note, the blogger that alerted us to this issue had previously received a nastygram from Microsoft about his post on Bing Cashback technical issues.

So, what do we make of this issue? Is it a potentially scammy technical glitch? More importantly, how soon can it be fixed so innocent online shoppers aren't quietly swindled out of cash throughout the holiday season? Let us know what you think should be done in the comments - particularly if you've noticed this bug yourself.

Amazon.com was founded in 1995, but it famously didn't make its first annual profit until 2003. Those days of struggle for e-commerce vendors are long gone. In its State Of Retailing Online 2009 report, Forrester Research reported that the vast majority of Web retailers were not only profitable in 2008 - in a recession - but also that their overall level of profitability grew.

E-commerce Continues to Grow, Despite Economy

E-commerce has ridden the ups and downs of the general economy over the past decade, but it has continued to grow throughout. In the State Of Retailing Online 2009 report, Forrester Research reported that retailers saw their Web divisions grow by 18% in 2008. Given that Forrester described 2008 as "one of the worst years ever" in retail, that's significant growth in online retail activity.

Holiday Season Predicted to Grow 8%

Online shopping always been a seasonal market and there are promising signs for the upcoming holiday season. The latest comScore statistics show that toy web sites grew 9% in October, which comScore claimed was due to some parents getting in early for holiday gifts. The retail apparel segment also grew by 9% in October.

Overall, Forrester Research predicts that online holiday retail sales (over November and December) will grow 8% this year to $44.7 billion.

Brick-and-Mortar Stores a Success on the Web

A noticeable trend over the past decade has been the slow but steady flight of 'brick-and-mortar' retail stores to the Web. In the early days of online retailing, Web operations were typically isolated from the main sales channels. But nowadays, Forrester notes that Web operations are a strategic part of the entire organization.

Two recent stories from industry website Internet Retailer show how traditional retailers are not only adapting online, but thriving. Best Buy's traffic has grown 18% over the past 12 months according to Nielsen Online. Meanwhile for the quarter ended October 31, 2009, Gap's Web sales increased 4.9% to $298 million. The web accounted for 8.3% of sales at Gap in Q3 09, compared to 8.0% in Q3 2008.

Forrester outlined a number of reasons why online channels are appealing during a "challenging" economy - including enabling consumers to find products online that they can't find elsewhere, offering comparisons on product features and pricing, avoding holiday crowds, and more.

All of this data is very encouraging to online retailers. Even during a down economy, the Web has come through for most of them. Web entrepreneurs, if you're looking for opportunities then look no further than online retailing!

Photo credit: Sⓘndy

Any business using Google Local Business Center can upload mobile coupon offers, and any user searching on Google.com using a mobile device can find the coupons on the businesses' Place Pages - a feature that also debuted relatively recently. Altogether, the direction the company is taking seems better for users and for local businesses, as well.

Product manager Alex Gawley wrote on the Google Mobile blog, "With more of you going mobile to search for this information, it makes sense for coupons to go mobile too... We hope you find these mobile coupons useful and that they help you save money, trees (fewer printed coupons), and your hands (from paper cuts) when you're on the go."

Place Pages for the desktop have also been revamped to ensure that mobile and printed coupons will share a common look and feel, regardless of the device, the OS, or the browser in which they originated.

It will be interesting to hear and read post-holiday metrics and success (or "opportunity for improvement") stories about these new mobile coupons. While we certainly hope the setup will allow users to quickly and conveniently engage with the world around them - and we likewise hope local retailers can reach out to customers wherever they are - we wonder how many quickly the coupons will take off and how much users will be inclined to use them.

Would you redeem a mobile coupon you found through Google search, and under what circumstances or conditions? Let us know your thoughts in the comments.

Developers can contribute to the project by uploading creations to the Developer Dashboard here. If you need ideas, a good place to start would be to look at the "Most Shared" in the Firefox Add-ons Gallery and think about how you can port some of those gems over for the Chrome experience.

LinkedIn holds an incredibly useful body of data about its users - not just because of the relatively high net worth it brags about its users having but because employment information is a very useful way to put a person in context on the web. That data is now available for an ecosystem of other developers to incorporate; TweetDeck, Posterous, Ribbit and several other applications already have.

1. It's easy to get started. After two years of waiting, unreplied emails and heartbreak - developers should now be able to get an API key within minutes and start building on the LinkedIn platform. That's great news and not something that could have been taken for granted.
2. The API allows search. That's great because with a little disambiguation done on the client side you can find the LinkedIn accounts of people you're connected to on other networks. Unfortunately, no one is doing exactly that yet - but isn't that the biggest value proposition here? I see a person on Twitter, on Facebook, on some other social network and I want to see what they do for a living. Let the app collect and expose that data from LinkedIn!

   Disambiguation of people with the same name and privacy limitations regarding who gets to see who's information are both complicating factors. The coolest use of the search API we've seen so far is Salim Ismail and Rohit Khare's Knx.to. That service is limited to your own connections so far, but it's definitely a keeper.



3. The API uses OAuth. That means that 3rd parties can offer fast, secure, standardized authentication into your LinkedIn user account. That's great.
4. Activity updates are now parsable by type. The API allows developers to pull in just one type of the many updates a person gets on LinkedIn. Will someone please build an app that just shows me when my contacts change jobs and leaves out all the status messages, friend connections and other cruft? That kind of granular control has a lot of potential and is reminiscent of the vision behind the proposed user activity data protocol Activity Streams.

And Now For the Bad News...

1. The first use-cases make it look like LinkedIn is trying to be Twitter. Tweetdeck and Posterous are the most high-profile early adopters of the new API; Tweetdeck will give you a LinkedIn column (too bad LinkedIn contacts can't be integrated into other columns) and Posterous will let you publish links to updates on that platform over to your LinkedIn contacts' streams. Jobdash looks like Tweetdeck just for LinkedIn and job-hunting, but it doesn't yet offer features like limited display of notifications by type - it's just a big stream of updates.

   LinkedIn is not Twitter! LinkedIn's Adam Nash told us this morning that he loves the Twitter and Twitter-like integrations but "integrating messaging isn't the goal, there's a wide range of business applications that will benefit from it. Twitter is hot so people are jumping to that but there are far more compelling business cases."

   Two years after the business-oriented platform was announced tiny Tweetdeck was just so hot it out-maneuvered all the business applications that could have been built to showcase? I don't buy it. Just like the formal partnership between Twitter and LinkedIn earlier this month, I worry that this API is built with marketing, promotion and broadcast functions best served.
   

   

2. Terms and Conditions are unclear, restrictive and changing. The API terms say that you can't build applications that compete with LinkedIn. API management service Mashery CEO Oren Michels (disclosure: RWW sponsor) had this in response to say: "It appears that you can't create a new experience around LinkedIn, an iPhone app for example. You might create some interesting bolt-ons to other services that might drive users to linkedin.com - but that's a very 5 years-ago approach to an API."

   "The signal from this is that they aren't encouraging developers to take the social graph and deep knowledge of peoples' professional lives and create new UIs for interacting with LinkedIn because they are explicitly concerned about competition," Michels said. "LinkedIn has amazing assets and a great business model - get out of the UI business!"

   Likewise several developers have expressed concern around the commercial limitations on the API. LinkedIn's Nash clarified with us that those terms simply prohibit charging people extra money for access to the free LinkedIn service and building an advertising network on top of LinkedIn profile data because of privacy concerns.

   Finally, the terms of the API aren't always clear. Michels points out that rate limits on accessing the API aren't made explicit - only that there will be rate limits and that a developer can email LinkedIn to request a personal expansion of their limit.

3. Not playing nice with others: LinkedIn is exposing what it calls an Activity Stream, but it's not at all related to the standardized format that Facebook, MySpace, Netflix and others are now publishing. LinkedIn publishes some Microformats but has been entirely absent from the wide-ranging community discussion of Activity Streams formats, we're told.

Michels may have said it best: "There are some really smart people over there at LinkedIn. If this is what we waited 2 and a half years for, it's a bit disappointing."

It is a bit, but not entirely disappointing. We look forward to seeing how the platform evolves and what kinds of applications are built on top of it. The web has been waiting a long time for a LinkedIn platform - now let's see what happens.

We called Google Maps Navigation a killer feature for Android 2.0 when Google announced it's release last month. Currently, however, there are only a few Android 2.0 phones on the market, so it only makes sense for Google to release this app for older phones as well.

Just like the Android 2.0 version, Google Maps Navigation for Android 1.6 will include voice guidance, traffic data, satellite and Street View imagery. The app will also show geographical information courtesy of the Google Maps Layers feature the company introduced earlier this year.

According to Google, Teracent's offerings will help the company to improve display advertising on the Web. Since acquiring DoubleClick in 2007, Google has released a number of new features to improve its display ads. Earlier this month, Google also acquired mobile advertising company AdMob. Neither Google nor Teracent released any information about the financial details of the transaction, which is "subject to various closing conditions."

Teracent's most well-known competitor is probably Dapper, which also offers dynamic display ads based on factors like a company's inventory or a user's location.

While Google was on a buying spree in 2007, when the company acquired 16 companies, it only bought 2 companies in 2008. So far, Google has acquired 5 companies and products in 2009: reCaptcha, On2, Gizmo5, AdMob and Teracent.

BNO News' founder Michael van Poppel also announced that the company will focus on doing more original reporting. According to today's press release, BNO News is also "in talks with other publishers." Given that the company is now closely aligned with MSNBC, however, it remains to be seen if other publishers will be willing to work with BNO News.

iPhone App

Daniel E. Shipton, CEO of BitMethod, the developers of the push-enabled BNO News iPhone app, was less than pleased with today's news. In a press release, Shipton states that he is "disappointed that BNO is choosing to leave behind their 1.4 million Twitter followers." Indeed, it will be interesting to see how the @BreakingNews feed will change under the new management. The iPhone app will stay under BNO News' control. It is not clear with it will continue to feature all the content from the MSNBC-managed @BreakingNews feed or just content from the new BNO news wire service.

Is This a Good Thing?

It was exciting to see the rise of BNO News over the last few months and today's announcement comes as quite a surprise. BNO News was founded by Michael van Poppel, a 19-year old student in the Netherlands. Our own Marshall Kirkpatrick profiled the company in great detail earlier this year.

We are not sure why BNO News didn't just make a deal with MSNBC to syndicate its feed. Given that BNO is a small business, chances are that the company just didn't have the resources to run the news feed and build a wire service at the same time. With a stable income stream from syndication and its iPhone app however, we have to wonder why BNO News would leave its 1.4 million Twitter followers in the hands of MSNBC.

Your Browser is Now Also a Server

Opera Unite allows you to easily turn your desktop into a web server and run a number of web services like photo-sharing, file-sharing, a web server, and an online media player right from your machine and access all of these services from anywhere. While this gives you control over your media, it also means that your data is only available online as long as your computer is running.

Starting a Unite server takes seconds (though you need an Opera account to make this work). Opera will assign an address to your computer based on your username. Users can choose if they want to protect their applications with passwords or if they want to make them available to anybody on the net.

Nothing New Besides Unite

Besides Opera Unite, this latest version doesn't sport any major new features. With features like Opera Turbo, bookmark syncing, and the sleek new visual tabs design that Opera introduced in the last update, Opera 10 does have a lot of things going for it. In our tests this morning, the browser was stable and fast. Even though we didn't run any benchmarks, Opera 10 felt just as fast as any other modern browser.

For more information about Opera Unite, also have a look at our more in-depth review of the service and the apps that Opera includes by default.

However, nearly everything else about the new Android application is the same as its mobile counterpart, including its search verticals of "web," "images," and "buzz" which sit above Taptu's search box on the app's main screen.

The "buzz" section contains real-time results pulled from sites like Twitter and Digg as well as from other social sharing websites, blogs, and data pulled from select panel of internet users who have downloaded the OneRiot toolbar and are anonymously sharing their web-browsing data with the company. This aggregate information is actually the most prominent source of real-time data for OneRiot's search service. As of September of this year, OneRiot claimed to have 3 million active toolbar users out of the 20 million or so who have downloaded the toolbar to date. Meanwhile, they're indexing around 20,000 links from Digg and 5 million from Twitter.

It's this data which powers Taptu's "buzz" section where you can find breaking news and other currently "hot topics" being discussed on the web. And unlike Twitter's trending topics, for instance, OneRiot doesn't link to raw tweets but to the actual news stories and blog posts that are sharing the information.

The main Taptu homepage also links to these trending items by way of a tag cloud whose colorful blue bubbles take you directly to the buzz section when tapped.

If you're interested in trying the new Android application, you can download a free copy from the Android Market on your mobile phone. If you don't own an Android device (or iPhone), you can still use Taptu via its mobile website available at www.taptu.com.

The new logos are just a preview of AOL's revamped look and are meant to replace AOL's swoosh triangle for good. The AOL "running man," however, will stick around the brand in some form, although the company isn't saying exactly where he will show up.

But the updated logos are a little off-putting to some. Noted technology blogger Om Malik of GigaOM posted his gut reaction Sunday night, calling them out as "lame," "ambiguous at best," and "as sexy as the obese, shapeless humans living on Axiom, the flagship of the BnL fleet in Pixar movie WALL-E." Ouch!

But it's easy to see where he's coming from. After all, some of the logos look more like the sorts of doodles you would find gracing high-schoolers' notebooks - like the hand doing the "sign of the horns" hand gesture. Really. "Rock on!," shouts the logo, but it reminds us more of a middle-aged heavy metal fan reminiscing about their youth than the young, hip company AOL desperately hopes to become.

Then there is the pink glob. The best way to describe this logo is a fluffy wad of bubble gum. A green scribble looks like someone had trouble getting their ballpoint ink pen going and a generic blue swirl seems to signify nothing but a lack of imagination. What content sites are these logos even associated with? Your guess is as good as ours.

CNET calls the goldfish logo "cute" (sarcastically?), but AOL isn't trying to build the next LOLcats empire, so maybe they should have forgone "cute" for something a little more meaningful and modern.

But that's just our opinion. What's yours? Let us know in the poll below.

In this post, we review the past decade of e-commerce and the key trends. Advances in recommendations technology, together with the emergence of social media and mobile commerce, have combined to change the way e-commerce is transacted. In a follow-up post, we look at current statistics for online retail.

Recommendations Technology Advances

Over the past decade the online retail industry has seen great strides in the use of recommendations technology. Amazon has consistently led the field in this, with its sophisticated blend of personalized, social and item recommendations.

Many of the retail recommendations in use today rely on implicit user data. These systems typically track user data, which is then analyzed with a set of usually proprietary algorithms. The end result: recommendations for users. Earlier this year we looked into Baynote's recommendation system:

"Baynote observes real-time user behavior on a site and looks for implicit, emergent patterns. It uses collective intelligence and an affinity engine to analyze the data. Common behaviors which it tracks include page refers, queries, mouse movement, time spent on a page, peer behavior."

Other similar recommendation technologies we've profiled include MyBuys, ATG and richrelevance.

Social Media Takes Retail to Blogs, Social Networks

As with nearly every other industry, shopping sites have increasingly used social media to promote their wares.

According to Shop.org's recent eHoliday Study, 47.1% of retailers surveyed will be increasing their use of social media this holiday season. Specifically, more than half of retailers have "added or improved their Facebook page (60.3%) and Twitter pages (58.7%)" this year. Nearly two-thirds (65.6%) have "added or enhanced blogs and RSS feeds" over the same time period.

One result of this has been a big increase in implicit social recommendations data across social networks and blogs.

Another trend with ecommerce sites is distributed sales. Anyone can embed an Amazon store into their blog or social network these days. As Kurt Collins of social commerce vendor Cartfly told us in December, this won't replace "end destination e-commerce" - but it will "augment sales tremendously" at the edge of the network.

Mobile Commerce Arrives, Albeit Slowly...

The growth of mobile phones has been a big trend this decade. However, as Sarah Perez wrote in September, mobile commerce in the U.S. market has struggled for momentum.

According to data from eMarketer, more than 70 million U.S. mobile phone users will access the internet from their devices this year. Despite this, the m-commerce market remains immature. In an April 2009 survey by RIS News, privacy and security concerns are still at the forefront of both shoppers' and retailers' minds.

There is some promise that mobile commerce will finally gain traction in the coming decade. Mobile payments firm Billing Revolution found that on-the-go consumers are happy to purchase small ticket items like pizza and movie tickets, for example.

One market that has shown strong signs of mobile commerce growth is Japan, according to Morgan Stanley.

See also our analysis of mobile payments.

Conclusion

New recommendations technologies make it easier every year for consumers to find what they want, social media has driven a lot of retail activity to small websites and social networks, and mobile commerce has slowly but surely gained a foothold in e-commerce.

These are just some of the trends in e-commerce over the past 10 years. While Amazon.com and eBay continue to be the giants of online retail, the Social Web and advances in web technology have both had a big impact this decade.

See also:

• Online Retail Thriving: 8% Growth Expected This Holiday Season
• Top Internet Trends of 2000-2009: Online Music
• Top Internet Trends of 2000-2009: Democratization of News Media

For Internet companies sitting in the US, news reports that chronicled the President's every move in China were a visible reminder of the business opportunity that may seem a click away.

So, why not export social media to China just like KFC and American Idol? After all, seeing Yao Ming, arguably China's grandest international star, on Facebook and Twitter, one naturally figures, aside from the language and periodic blocking of websites, "What's the diff?"

But Facebook has gained little traction in China (with only 390,000 users), and tweets have virtually ground to a halt since the government started blocking Twitter, and these factors point to the "diff."

Simply flinging an American product into the Chinese market won't succeed, because every social media category has a Chinese equivalent that is tuned to the particular needs of the mainland Chinese market.

One of China's "Facebooks," Kaixin001.com, has already secured over 40 million users since launching only last year. The platform gained its initial popularity through applications that you would recognize from the real Facebook, such as "Friends for sale" and "Parking wars" - but with a Chinese twist.

Take, for example, the application called "Xingming Yuanfen," in which you type in a friend's name to test your "yuanfen" (i.e. your predetermined relationship with that person). Another application explains who you were in your previous life. It turns out I was a bandit, much to the chagrin of my parents.

These "fortune-telling" applications enjoy incredible popularity on computers and mobile phones. While fortune-telling jars Western sensibilities, it remains a part of Chinese culture.

The B-B-what?

But the best example of China walking to the beat of its own drummer is the continued popularity of the BBS.

That's not a typo.

That is the same bulletin board system that went by the wayside in the US with dial-up modems and US Robotics. Chinese students - who, like their counterparts in the US, are more open to experimentation than other segments - established the foundation for BBS' to flourish in China.

All major universities operate their own BBS. Peking University and Tsinghua University (which are the Harvard and MIT of China) host the Weiming BBS (named after Weiming Lake at Peking University) and Shuimu Tsinghua BBS, respectively.

With 10+ years' worth of graduates who grew up on BBS' now driving the Chinese Internet market, these same people have fueled a range of BBS sites tied to their interests and professions. According to the latest CINIC (China Internet Network Information Center) report, roughly 30% of Chinese Web users spend a significant amount of time on a BBS. So, these sites certainly transcend geekdom.

55BBS, for example, is an online community where users share discount information, coupons and other creative ways to land a good deal. Users also share news of what they got from their latest shopping spree, showing off a photo of skin care products as if it were a trophy.

Perhaps the most unique phenomenon in China is Tianya, the #1 BBS, with almost 30 million users.

What is Tianya? Think of it as a gathering place for an eclectic blend of intellectuals, journalists, freelancers, professors, researchers, gadflies, etc. Users write on and comment about sensitive social issues that may be off-limits to mainstream media. People also head to this forum to gossip about celebrities (okay, some things don't change between cultures).

A Chinese word has been coined for BBS evangelists: "Da'rens," which roughly means "people who really know how to do something." We're now starting to see some "Da'rens" parlay their popularity into commercial success. The famous makeup Da'ren known as Arora started out writing about cosmetics on a BBS before launching a blog for the mega-portal Sina.com.

From a Chinese perspective, the fundamental difference between a blog and BBS is that a BBS allows for anonymity, which appeals to the introversion of many Chinese. Blogging is also more of a solitary activity, with readers chiming in with comments later. The BBS, on the other hand, is more of a collaborative undertaking, which also appeals to the Chinese.

This all means that Internet companies from the US looking to crack the mainland Chinese market need to do their homework and tailor their products accordingly.

Here's an easy litmus test when planning your market entry in China: "What's the difference between the US and Chinese version of your product?"

If the answer takes more than 60 seconds to explain, then you've got a fighting chance.

Wei Wang is a digital consultant with The Hoffman Agency, a communications consultancy with offices in Beijing (where Wei is based) and Shanghai, as well as throughout Asia, the US and Europe. She can be reached at WWang@Hoffman.com.

What's your experience? Have you found yourself inadvertently threatening the powers that be?

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