DNS - Woot! Amazon Scores Best Deal of the Day

Amazon.com (News - Alert) has just purchased bargain website Woot.com, according to the Associated Press. Even though financial terms were not disclosed, it has been reported that the Internet giant paid about $110 million for the deal-a-day website.

Even though the deal is not expected to be finalized until the end of September, the Texas-based shopping site plans to keep its current MO: "a wall of ideas and a dartboard," joked Woot CEO Matt Rutledge on the company blog. The site prides itself by offering one discounted item each day in a free-for-all type of buying war. There are limited quantities of each product and when it's gone, it's gone, according to the website's FAQ.

An article on NYTimes.com's DealBook blog said their gotta-have-it-now tactics would not be understood by traditional retailers, but online shopping is a whole different ballgame. Some deal-a-day sites restrict access to members only, while others cancel the entire deal if not enough interest is shown in the product.

Woot's approach is successful since visiting the site can "feel like a game in which they compete against the clock and others huddled at their computers looking for the best deal." The companies also win when they sell their products through the retailer since they can introduce their brand to the public and get rid of inventory more quickly than with your standard shopping site.

Even though Amazon.com offers great deals and discounts of its own, Woot is more attractive to the impulse shopper by "persuading you to buy something you didn't even know you needed," said a Forrester Research (News - Alert) analyst.

Woot.com got its start six years ago by selling one item per day at a heavily discounted price - usually consumer electronics, according to AP. They have since expanded to other products but have not changed their controversial method.