Microsoft Strolls into E-Commerce Marketplace

The software behemoth said the main reason for the Windows Marketplace site was to present all of the nearly 100,000 Windows add-ons -- everything from screen savers to accounting applications to digital cameras -- in one easy-to-navigate place.

Clarity and Competition

While the move is seen by industry observers as an obvious play against the likes of Amazon -- Microsoft will include customer reviews and search capability -- analysts say the site also provides a valuable service for customers, who face an over-abundance of software and hardware information online.

"It does serve a purpose for customers," Yankee Group senior analyst Laura DiDio told the E-Commerce Times.

"Certainly, Microsoft is trying to further its own interests, but at the same time it is helping users with this," she said.

Centrally Located

Boasting of nearly 95,000 products -- including downloadable software -- Microsoft said the purpose of Windows Marketplace is to provide a central online place and reduce confusion and complexity for Windows consumers.

Microsoft said it had refined product groupings and search tools to allow hunts by category, product, company, or popularity.

Microsoft also said products could be compared and that the new site would enable customers to communicate on their experiences through reviews and moderated discussion groups.

The site will be organized into 500 categories and will feature products from about 2,000 partners.

Offering downloads -- including some at no charge -- for thousands of applications, Microsoft said its new marketplace was aimed at reducing confusion for Windows users.

Direct From Dell

Forrester analyst Ted Schadler told the E-Commerce Times the new Microsoft site is proof of the success of Dell, which has turned direct sales to consumers into a powerful business model.

"The whole retail experience that happens at the point of sale has become a pretty powerful thing," Schadler said.

Schadler also noted Microsoft's market research before launching the site, which helped the company build the listings and taxonomy.

"They obviously did some market testing to come up with these categories, and that helps," he said.

Media Market

Microsoft also tied the Windows Marketplace to its new digital entertainment strategy, announced this week. Martetplace has new features and software for media center PCs and peripheral devices.

The company called Windows Marketplace "a key element of its broader vision for a digital lifestyle," which represents a major emerging market, DiDio said.

"Microsoft's grand, overall plan is to get into all of these new markets and the media center idea," she said. "That's where the money's going to be."