Webware

Wow. There is money out there: a retail deals site called Groupon has raised a whopping $30 million Series B funding round led by Accel Partners, one of Facebook's early backers. Existing Groupon investor NEA, which led the company's $4.8 million Series A round in January 2008, also contributed.

Here is the gist of Groupon: there are currently editions for 26 U.S. cities. The site advertises a deal each day from a selected local establishment like a restaurant, nail salon, or gym. There's a heavy discount involved. But enough members have to opt into the deal in order for any of them to get it. Groupon takes a cut of earnings if the deal hits the "tipping point" and goes live; otherwise, the featured merchant does not have to pay.

They've been profitable since June, founder and CEO Andrew Mason told CNET. So why raise $30 million? "We want to roll out to another 50 cities or so next year," he said, adding that early in 2010 it hopes to expand to Canadian cities, "so it's just going to help us increase the rate of customer acquisition and focus on building new technology." He wouldn't say what that new technology is, but he did add that the company went from 10 to 120 employees in the past year and planned to continue to grow at that rate.

The company grew out of an existing start-up called ThePoint, which applied a similar "collective" model to community and activism projects, before switching entirely to the retail model.

Web shoppers are a suspicious lot. That's the conclusion of a recent poll conducted by Zogby International and funded by Symantec and the National Cyber Security Alliance. The survey found that 63 percent of online shoppers abandoned a purchase due to security concerns.

Among the reasons given for failing to complete the transaction were sites that asked for too much information, uncertainty about how their personal data would be used by the site, and lack of faith in the site's security. These are all valid concerns.

CNET News reporter Greg Sandoval describes recent Congressional hearings on bogus online loyalty programs that sucker Web shoppers into offers that are loaded with fine print. Sandoval's follow-up report indicates that few of the big-name sites profiting from these programs intend to end their relationships with the companies being scrutinized.

Even if you've been making Web purchases for years, it pays to review the top five tips for avoiding unpleasant online-shopping surprises.

Know who you're dealing with
You can get an indication of a site's trustworthiness by using a site-rating browser add-on such as the Web of Trust, LinkExtend, and McAfee SiteAdvisor. I described these and other security add-ons for Firefox in a post on Nov. 17, but these and similar site-rating services are available for Internet Explorer and other browsers as well.

The BBB Online's shopping tips suggest that if you're not sure about completing a Web purchase, look for a toll-free phone number you can call to place your order. Just remember not to volunteer more information than necessary, whether you make your purchase via a Web form or telephone.

Know exactly what you're getting—and when and how you're getting it
Document as many specs as possible about the products you're purchasing, including model numbers, dimensions, item numbers, and guarantees of authenticity. Know beforehand all delivery and handling charges, warranties, and return/refund policies. Get the tracking number of the delivery service the vendor will use.

In my experience, the ability of Amazon and other reputable Web sites to deliver products when they promise goes down as the heart of holiday shopping season approaches. To avoid Christmas morning disappointments, shop very early or stick to brick and mortar for your most important purchases.

Watch for prechecked or disguised 'offers'
Just as you can find your browser sporting a new toolbar if you rush through an update of your media player or PDF reader, being in a hurry when you make a Web purchase can cause you to "sign up" for unwanted offers. Technologizer blogger Harry McCracken found himself an inadvertent enrollee in the SavingsAce affinity program run by Vertrue, which is one of the companies under investigation by Congress.

Maintain a complete paper trail
Print out all transaction records, invoices, order-confirmation e-mails, warranties, return and refund policies, and anything else that documents the transaction. The BBB Online recommends printing Web pages showing the vendor's name, physical address, and telephone number. Also print pages with information about the product you're purchasing and the seller's privacy policy and legal terms.

Watch for unexpected charges after the fact
Some of the most unpleasant surprises may not manifest themselves until you receive your next credit-card statement. Be ready to challenge any unauthorized fees or other added charges. Watch out for mystery charges from third-party vendors such as Harry's experience with SavingsAce.

If you're unable to work out any problems with the vendor, the BBB Online recommends using the Better Business Bureau's complaint form, the Federal Trade Commission's Bureau of Consumer Protection complaint form, or the equivalent complaint form on the site of your state's attorney general.

Unfortunately, when I went this route with the faulty notebook computer HP sold me, I got nowhere fast. Still, you might have better luck with your complaints than I had with mine.

RIM's BlackBerry App World is slowly but surely gaining ground as a storefront for distributing BlackBerry applications. eBay is the latest major company to forge a presence in the storefront, in the form of an eBay app for BlackBerry auctioneers in the U.S. and Canada.

The official eBay for BlackBerry application, which was co-developed by eBay and RIM, includes features to search for, track, and buy an item from the smartphone. Unsurprisingly, the eBay app accepts PayPal payments--PayPal has not only been an eBay company since 2002, it is also currently the only payment system for purchasing BlackBerry apps through the App World.

(Credit: RIM/BlackBerry)

In addition to letting users search and buy, the eBay app will notify you of your bidding status, including when you've won or lost a bid. It can also schedule auction-related reminders in the BlackBerry calendar.

eBay's app isn't the first of its kind for the BlackBerry platform. Earlier this year, Bonfire Media released U.S. and international versions of its app, Pocket Auctions for eBay. Since Pocket Auctions doesn't include hooks into the phone's native calendar, and costs $10, we're guessing that most eBay fans will easily pick the free, official app over Bonfire Media's third-party offering.

We got a brief demo of the then-under-wraps eBay app at the BlackBerry Developer Conference earlier this month. We liked the ease of the PayPal integration, but we won't really know how well the app works until we've spent some time with it. Tune back for our first impressions.

Google coupons now available on the go.

(Credit: Google)

Google has been giving companies in its business listings ways to offer digital coupons to visitors since 2007. It wasn't until this week, though, that Google could bring the same coupons to mobile users.

It works like this: Businesses add a coupon to their listing in Google's Local Business Center. When you search a Google local listing from your Internet-enabled phone, any available coupons show up. As with other mobile coupon sites and applications, you'll simply present your phone face at the check-out stand. The checker will enter in the coupon bar code and you'll get your discount.

Google's mobile expansion of its digital coupons brings the search and advertising giant in direct competition with coupon providers like Coupons.com, Coupon Sherpa, Cellfire, and Yowza. With the exception of Yowza, which is a mobile-only application for the iPhone and iPod Touch, each service has a mobile coupons site and at least an iPhone app. Yelp has also jumped into the mobile deal business by letting businesses place special offers to Yelp users on Yelp.com and in its iPhone app.

Users' biggest complaints with mobile coupons tend to boil down to one thing: variety. While national chains are easier (and generally more effective) for a coupon service to sign, millions of other shoppers may prefer discounts for local or specialized brands, restaurants, and stores. Any business model that can capitalize on a self-service coupon sign-up for local and national businesses should have the upper hand.

So long as mobile shoppers navigate to Google's site from their cell phone browsers, Google's coupon business should grow. After all, Google isn't creating a brand-new business for digital deal distribution, but extending one that's already in place.

Google has entered into an agreement to acquire online ad-optimization firm Teracent, the search giant announced in a blog post on Monday. The transaction is subject to several closing conditions, but is expected to close by the end of the quarter.

Google said it has been "busy releasing new features and products to help improve display advertising on the Web," according to the blog post. After examining Teracent's technology, the company felt that it fit "neatly" into its display-advertising goals, the blog said.

Teracent certainly brings something new to Google's advertising efforts. The company's technology tweaks images, products, messages, or colors to optimize ad units based on the viewer's location, what language they speak, the kind of content they're viewing, the local time, and how well particular units have performed in the past. It does all that work in real time as the algorithm examines the ad's environment.

"This technology can help advertisers get better results from their display ad campaigns," Google wrote in a blog post. "In turn, this enables publishers to make more money from their ad space and delivers Web users better ads and more ad-funded web content."

Teracent should be integrated into Google's advertising efforts by the end of the quarter. Neither company divulged how much Teracent was acquired for.

eBay on Sunday confirmed that a "technical issue" had caused search queries on the auction site to be messed up over the weekend, resulting in limited or no search results. The company says that it's being cautious, though, and is holding back on some advanced search features until the issue is fully solved.

"We are happy to report that critical search functionality was restored overnight on Saturday and we are seeing normal activity levels today," a post on the company's eBay Ink blog read Sunday. "As part of our effort to restore critical search functionality as quickly as possible for sellers and for buyers, we have kept some secondary search features temporarily offline. This includes refining search by certain item specifics, such as color or clothing size, and having Store Inventory Format results included in the main search results."

In a statement, eBay also said the technical issue was caused by "a surge in live listings as sellers ramp up for the holiday season. eBay currently has more than 200 million live listings, 33 percent more than at this time a year ago."

Some eBay members still weren't satisfied with the explanation. "I had a one day auction ending today, (and) no one was obviously able to bid on it because they couldn't search for it," one commenter said on the eBay Ink blog. "Will I get a credit for this?"

"eBay should credit all sellers with active listings during this time," another said. "These issues have cost sellers many bids and sales. Once again eBay is screwing sellers."

Much like Twitter's today, outages at eBay were rather prominent in the company's early days. They're not too frequent anymore. But this one came at a time when there are some sentiments of malaise among eBay sellers, some of whom use the auction site to make a living, and when it also faces increased competition in the e-commerce sector.

An analyst release from JP Morgan Chase said that it did not anticipate the outage would have an effect on eBay's fourth-quarter earnings. But, it contained a warning: "Although we recognize it is virtually impossible for a site of this complexity to not encounter occasional issues," the report from analyst Imran Khan read, "we continue to believe that eBay needs to make greater investments in the robustness and functionality of its site in order to remain competitive within the e-commerce space."

(Credit: Josh Lowensohn / CNET)

Buying off of Craigslist can be quite a process, and of all the things for sale, the cars and trucks section is one of the most daunting. Unlike digital cameras and random bits of furniture, cars are (usually) expensive and come with an important history both from the owner, and the manufacturer.

That's why browser extension Craigslist Car Research is so useful. It adds an entire layer of data on top of each listing to make it easier to both find out more about the car, and others like it for sale on Craigslist; all without having to leave Craigslist.

The extension works the same for Firefox and Chrome. Users with Greasemonkey installed can also just add it to their list of scripts. Once it's up and running, every car listing on Craigslist gets a few extra pages of data below whatever the poster has provided, including things like:

• Car reviews from CarSurvey.org and Edmunds.com
• Recall or safety notices
• Price estimates from places like Motor Trend, Automotive.com, Kelly Blue Book, and the Canadian Black Book
•Other similar listings on Craigslist (with prices)
• A quick way to check and see other listings that seller has up on Craigslist.

All of this information can be hidden, either all at once or by specific feature. The extension also scans each list for problem words or phrases, and will tip you off on whether it's worth following up with the owner to see if it's been in an accident.

With the extension installed you get comparison shopping for other cars on Craigslist, as well as a heads-up on whether it's worth looking at other things for sale from that seller and if you should call to see if the car's been in an accident.

(Credit: CNET)

Along with this extension, developer Tech4Computer has another script that can figure out the price of importing a car from the U.S. into Canada. There's also a version of the car and truck shopping extension for motorcycle buyers.

See also: Find the right used car for you: 24 sites

Offerpal Media, one of the companies at the center of a bitter dispute over misleading advertisements on social networks, on Thursday launched a revised policy designed to "forbid any offers that are misleading, deceptive or otherwise objectionable."

Companies like Offerpal are enlisted by many of the big gaming companies built on social networks like Facebook; they help those companies make money by letting game players earn points and virtual goods by completing offers and surveys rather than paying real money.

They make a lot of money doing so. So do the game companies, like Zynga and Playfish (recently acquired by Electronic Arts), which in turn advertise heavily on the likes of Facebook to recruit new players.

But then the negative press started to emerge: many of these "free" offers and surveys actually had hidden costs attached to them that weren't adequately disclosed. Some companies like Zynga started backtracking and going so far as to ban offers altogether. Facebook and MySpace, the two biggest social-network platforms, made very public revisions to their policies. But the controversy continued, and both Facebook and Zynga were named as defendants in a federal class-action lawsuit.

Offerpal, which replaced its CEO amid the controversy, has now come out and said that while it's setting a basic standard for advertisement quality, game makers and publishers enlisting Offerpal's services can opt to be even more stringent. "Offerpal will rate all offers by quality and allow its partners to select a quality level of compliance ranging from 'Level 1' for minimal restrictions to 'Level 5' for highly conservative restrictions," a release explained.

Will the new restrictions keep angry bloggers and consumers--not to mention lawmakers--at bay? More importantly, are they going to amount to anything more than smoke and mirrors? We'll see.

The simple concept of having virtual-good payments in games sent directly to your cell phone bill has gotten a lot of buzz--and stirred up a lot of rivalry. One of the start-ups looking to pull this off, Boku, announced Monday that it has signed on a dozen new gaming partners, both a few based on the Facebook platform and some others that are either Web-based or desktop downloads.

The partner companies are Waves, Cie Studios, Cyberstep, GameDuell, IGG, King.com, NHN USA, Ntreev, Outspark, PerfectWorld, Snap Interactive, and Zoosk. Most of them aren't household names: they're game manufacturers, not the games themselves, and some of them are most prominent outside the U.S.

There are a handful of companies trying to grab market share in this space, but the two who have been most vocal about making inroads have been Boku and rival Zong, which last month announced that it would allow members to sync credit cards with their phone numbers, allowing for larger payments and putting the company closer to direct competition with the likes of PayPal.

Boku says it's sticking to the mobile-number-only strategy, choosing instead to ink more deals and emphasize its global reach: with the current round of partnerships, the company says it will have 200 million registered users added to its ranks (no word on how active they all are, or how much redundancy there is across games).

Additionally, Boku has made some infrastructure upgrades that it says will improve the user experience, including the ability to detect whether a phone number that has been entered is landline or mobile--and if mobile, what carrier it's coming from.