E-Commerce Review Promoter PowerReviews Raises $10 Million

PowerReviews is a promoter of product reviews that are written by supposedly unbiased consumers, and are placed on e-commerce websites. They recently raised $10 million in venture capital to fund further expansion, which they will use to hire more engineers and salespeople.

Today there are over 5,000 websites that sell a product on the internet. Many of these like Amazon, Radio Shack, or CompUsa have a section where an ordinary former customer can write a review on an item that they have experience with. These reviews can be both positive and negative.

It has been proven sales increase on websites that have product reviews, when compared to competing sites that do not offer them. The potential customers like reading what other people thought about an item they are considering purchasing.

The websites that offer them were initially concerned about the negative reviews. But, they quickly learned that consumers are a great deal smarter than they anticipated, and they will not let a few bad reviews stop them from purchasing a product, as long as there are also good ones.