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An RSS Feed isn't an easy thing to explain, as it's seen very differently depending on what the final application is. To some, it's a way to add syndicated content to their own site. To others, it's a way to keep up with the latest developments from their favourite websites and/or stores. To you, the store owner, it's a way to get your products listed on other websites and/or portal pages with the guarantee that it will ALWAYS be 100% up to date.
To explain further, we'll look at each of the possible scenarios separately.
First of all, what does an RSS Feed mean to you? Quite simply, you have the ability to generate a specially constructed file which contains either your store's top sellers, your store's new additions, or new additions and top sellers within individual categories on your store. For example, you can access the RSS Feeds area of your Store Manager and by clicking a single button you can automatically generate a file containing the current top sellers on your store. This file will be recognised automatically by your store and added to the RSS Feeds page of your website. Anyone visiting this page will be able to select which website this feed is embedded within, such as their own Google or Yahoo home page. From this point on, they are a subscriber to your Top Sellers feed and every time you update this feed (by clicking on the same button to regenerate the feed again based on current information and sales stats) it will be picked up automatically by the host website (ie Google / Yahoo / MSN / AOL etc) and your revised content will be made available to them immediately. This means that your customers don't necessarily have to visit your store in order to be notified of new products, top selling products etc.
From another point of view - anyone who has a blog or website specialising in your particular field may want to add content to their website which allows them to maintain fresh content on a daily or weekly basis without actually having to do anything themselves. Embedding your New Additions feed to their website will mean that, any time you update your own New Additions feed, their website will be updated with YOUR new products so that anyone visiting THEIR website will see a list of your latest products which, when clicked on, will take them directly to your store.
It sounds complicated, but the only thing you have to decide as the store owner is which feed you want to create, and the software does the rest. Your store will automatically have a "Top Sellers" and "New Additions" feed option, regardless of anything else. Whenever you add products to a particular category, the RSS Feeds module will recognise this category and will provide you with an option to generate a New Additions feed or a Top Sellers feed for THAT specific category. For example, your store may have "Books", "DVDs", "CDs" and "Games" as the categories, and so your RSS Feeds area within the store manager will automatically have buttons to allow you to generate feeds for these categories automatically... you don't need to do ANYTHING other than just click on the button to generate the feed and the software will do everything else for you.
Ultimately, an RSS Feed can mean the difference between someone forgetting about your store and never going back, or someone visiting their own Google or Yahoo home page and being immediately reminded of your store because your product feed is staring them in the face.