Discount online retailer Cybershop (Nasdaq: CYSP), which runs an online department store that sells clothing, housewares, electronics, jewelry and toys, announced today that it has agreed to a strategic marketing deal with the Go2Net (Nasdaq: GNET) network.
Cybershop will be the exclusive front-page sponsor of the apparel category on Go2Net’s Webmarket and will also be prominently featured on Go2Net’s shopping channel and targeted areas of the MetaCrawler search engine.
Refocused Business Strategy
Two weeks ago, Cybershop announced that it was changing its strategy and targeting its business toward the outlet store and off-price categories, The off-price market is currently dominated by brick-and-mortar stores like T.J. Maxx, Marshalls and Ross. Cybershop also closed its gift Web site, consolidated its gift merchandise into CyberShop.com and launched its own auction house.
Cybershop has also just signed up as a charter merchant on Amazon.com’s new auction service. In addition, CyberShop has existing marketing agreements with Yahoo!, America Online, Excite and MSN Shopping.
“We believe that our positioning on Go2Net will create awareness about our product assortment and enable us to quickly differentiate ourselves from the competition,” said Jeff Tauber, CyberShop chairman and CEO.
Shares of Cybershop were up 1-1/16 to 13-3/4 in early trading today, while shares of Go2Net soared 7-9/16 to 142. Go2Net is one of the best-performing stocks of the last year, up more than 2,300 percent since its 52-week low of 6. The stock has benefited greatly from Microsoft co-founder Paul Allen’s $300 million investment in Go2Net.