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We have two different websites with the same products and information, will that hurt our rankings?
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We have two different domains, one for the UK and the other for the US, they have the exact same products, categories and information. (the information is almost the same in 400 products)
We know that Google could recognize that as duplicate content, but will that actually hurt our rankings in both sites?
Is it better if we create two completely different versions of the content on those pages?
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Apologies if I am jumping in, but I just wanted add something to the mix. I also have a very similar situation and I posted this question on this forum earlier today. So I was wondering, does it not matter that each website has geographic targeting for different countries on Google Webmaster? For example, we have a brochure website, and we are selling the same service in multiple countries. It make sense to have country specific domains. And it is very difficult to describe the same product 3 different ways. It just doesn't make sense. However, are you saying that the sites would need to have unique content or different content from each other even though their geographic targets are set to different countries.
By the way my sites are starting small with around 10 pages each.
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For your case I recommend two possible solutions. The first one: write unique descriptions of your products. The second one: set up canonical urls from one domain on another, for example from uk domain to us domain. It will be the sign for Google that content on uk domain is duplicate and original on us domain. Of course your uk domain will not rank well, but you will avoid duplicated content problems. As you see much better solution will be just write unique content. And it will give you more freedom for domain targeting and will be much more smarter solution.
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Definitely better to create unique content for each site. It doesn't have to be 100% (but the more unique the better)
If you don't already, I would follow Google WMT on YouTube. Matt Cutts just did a video on this.
Here's another video from a few months ago talking about unique content for e-commerce sites.
Personally, if you have the same content on both sites and nothing separates one another, you'll have a hard time ranking them. You aren't helping Google's users by providing good, fresh content. Google doesn't know you aren't a fly-by-night site and therefore won't rank you. If that was the case, I would just copy any site ranking for my keywords and I could rank too. It doesn't work that way.
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