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BigfootDepot · Joined: 27 Apr 2005 Posts: 916 Location: Northwest Ohio

Google Inc. is penalizing Overstock.com Inc. in its search results after the retailer ran afoul of Google policies that prohibit companies from artificially boosting their ranking in the Internet giant's search engine.

Overstock's pages had recently ranked near the top of results for dozens of common searches, including "vacuum cleaners" and "laptop computers." But links to Overstock on Tuesday dropped to the fifth or sixth pages of Google results for many of those categories, greatly reducing the chances that a user would click on its links.

The incident, according to Overstock, stemmed in part from its practice of encouraging websites of colleges and universities to post links to Overstock pages so that students and faculty could receive discounts on the shopping site. Overstock said it discontinued the program on Feb. 10, before hearing from Google, but said some university webmasters have been slow to remove the links.

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sciencefare

Google Penalizes Overstock For Search Tactics

By AMIR EFRATI

Google Inc. is penalizing Overstock.com Inc. in its search results after the retailer ran afoul of Google policies that prohibit companies from artificially boosting their ranking in the Internet giant's search engine.

Overstock's pages had recently ranked near the top of results for dozens of common searches, including "vacuum cleaners" and "laptop computers." But links to Overstock on Tuesday dropped to the fifth or sixth pages of Google results for many of those categories, greatly reducing the chances that a user would click on its links.

The incident, according to Overstock, stemmed in part from its practice of encouraging websites of colleges and universities to post links to Overstock pages so that students and faculty could receive discounts on the shopping site. Overstock said it discontinued the program on Feb. 10, before hearing from Google, but said some university webmasters have been slow to remove the links.

Overstock said that it has dropped in Google's search results. Above, an Overstock warehouse in Salt Lake City.

Internet search experts say that sites associated with educational institutions, which come with ".edu" in their Web addresses, are often considered by Google's search algorithm to be more authoritative than commercial sites. Experts say educational sites rarely link to commercial sites, so a shopping site can surge in Google rankings if an .edu page links to it.

"Google has made clear they believe these links should not factor into their search algorithm," said Patrick Byrne, Overstock's chief executive, in a statement. "We understand Google's position and have made the appropriate changes to remain within Google's guidelines."

Google wouldn't discuss details of the incident, citing a policy against discussing specific websites. A Google spokesman said its goal "is to deliver the most relevant information possible." He added that "attempts to game Google's ranking go on 24 hours a day, every single day."

Many companies use a variety of techniques to try to enhance their positions in search results, a practice called search engine optimization, or SEO. Appearing higher on pages containing search results tends to attract greater attention among the many customers who hunt for goods or services through Google and other search engines. Some companies hire SEO services to help elevate their rankings.

The Overstock incident is the second move by Google in two weeks against a large retailer for allegedly violating guidelines. Earlier this month, the New York Times reported that Google lowered the ranking of links to J.C. Penney Co. in response to tactics employed by an SEO consultant on its behalf.

The retailer has said that it wasn't aware of the tactics and didn't authorize them. A spokeswoman said J.C. Penney terminated its relationship with the SEO consultant. She said the retailer was disappointed Google has reduced its rankings and will work to regain its standings.

In Overstock's case, the retailer offered discounts of 10% on some merchandise to students and faculty. In exchange, it asked college and university websites to...

Read The Rest From: The Wall Street Journal

dticorp · Joined: 19 Aug 2006 Posts: 1760

Google Penalizes Overstock for Search Tactics

Google Inc. is penalizing Overstock.com Inc. in its search results after the retailer ran afoul of Google policies that prohibit companies from artificially boosting their ranking in the Internet giant's search engine.

Overstock's pages had recently ranked near the top of results for dozens of common searches, including "vacuum cleaners" and "laptop computers." But links to Overstock on Tuesday dropped to the fifth or sixth pages of Google results for many of those categories, greatly reducing the chances that a user would click on its links.

The incident, according to Overstock, stemmed in part from its practice of encouraging websites of colleges and universities to post links to Overstock pages so that students and faculty could receive discounts on the shopping site. Overstock said it discontinued the program on Feb. 10, before hearing from Google, but said some university webmasters have been slow to remove the links.

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elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

"UPDATE 1-Overstock.com says Google penalty hurt sales"

(Reuters) - Overstock.com Inc said it will be at least two to three weeks before Google Inc ends the penalty period slapped on the discount e-retailer, hurting its revenue.

On Feb. 22, Google notified Overstock that it was penalizing the company for noncompliance with some of Google's search guidelines.

"As a result, we have dropped significantly in some Google natural search result rankings," Overstock said in a regulatory filing.

Google is not yet fully satisfied and continues to penalize Overstock in search results, the company added.

The lower Google natural search rankings has hurt sales during the penalty period to date by 5 percent and Overstock expects this to continue for the rest of the period.

This winter, Google penalized JC Penney Co Inc after it determined that the search engine optimization company the department store chain hired had used unauthorized means to make Penney's website rank high in searches.

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elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

Latest update:

"Overstock.com Released From Google Penalty Box"

SALT LAKE CITY, April 25, 2011 /PRNewswire/ -- Overstock.com, Inc. (Nasdaq:OSTK - News) (short cut: O.CO) today announced that the search engine penalty enforced on them by Google in late February has been lifted.

"We understand Google's position and we have made changes to remain clearly within their guidelines," said Overstock.com CEO Patrick Byrne.

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elgato · Joined: 24 Feb 2005 Posts: 17240 Location: Texas

"Overstock Q1 Earnings - Google Penalty Impacted Conversion"

Overstock.com reported a 1.2% decline in revenue to $262.4 million in the first quarter 2012, primarily due to fewer orders from lower conversion rates. Fulfillment partner revenue increased by 1.9% to $221.5 million from $217.3 million. Net income for Q1 2012 was $2.7 million, compared to net loss of $444,000 for Q1 2011.

Gross profit for Q1 2012 fell 5% to $47.5 million primarily due to higher fulfillment costs. Gross profit for the direct business decreased 36% to $3.3 million from $5.1 million. Gross profit for the fulfillment partner business declined by 2% to $44.2 million.

Sales and marketing expenses totaled $14.5 million for Q1 2012, a 6% decrease thanks to a decreased spending in television advertising and lower compensation-related costs from reduced staffing.

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