More interesting topics Related topics. Digital coupons and deals. Online marketplaces. E-commerce worldwide. E-commerce in the United States. Go to report.
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By choosing I Accept , you consent to our use of cookies and other tracking technologies. Groupon is looking for a buyer. Reddit Pocket Flipboard Email. For retailers, flux is the new business as usual. Hear from top industry leaders. Register Now. If you're the owner of a small business , you may be wondering if listing a deal on Groupon can benefit your bottom line. Although it may seem like an easy way to drum up new business, Groupon is not that simple.
You have to put as much consideration into a Groupon marketing campaign as you would any other lead development strategy. If you just make a coupon on the fly, you could end up losing a lot of money.
Groupon is an advertising platform that is largely geared toward serving local markets. Businesses can use Groupon to promote discounts vouchers for services and products. Essentially, Groupon is a middleman that wants to connect you with people who will buy your services and products, because the more that people buy from you, the more money Groupon makes.
The process has historically been fairly straightforward: You create a deal that is then listed on the Groupon website and possibly featured in its emails to local markets. Customers purchase your deal, and the company collects money on your behalf. Groupon takes a cut off the top; you get the rest. Notably, the company is relying less and less on this heavily discounted voucher system and moving toward a "marketplace" model designed to foster ongoing relationships with businesses and customers.
Regardless of changes to Groupon's model, a major benefit to using the platform is that it might expose your business to more ready-to-buy customers. Contrary to the information-gathering users who visit search engines like Google, people who head to Groupon have usually already decided that they want to make a purchase.
Relying on Google to get the word out about your small business is not always successful because you're relying on its always-changing algorithms, and there's no guarantee your site will be shown on page-one search results unless you purchase advertising. This, in turn, depressed consumer interest, causing a network effect in reverse that took a massive bite out of Groupon. In , Groupon started pivoting away from the daily deals model, and more toward a general eCommerce offering, focused on products for consumers.
Given its latest results, though, it is safe to say that this did not turn out to be the magic bullet for which the company had hoped.
Many experts have noted that Groupon needs to find a way to sell itself , preferably to a firm with deep pockets. Amazon has been tapped as one possible buyer, mostly because it is the largest eCommerce player in the field — however, it did buy Woot. As of late, it seems Amazon has been pushing Woot. Maybe, just maybe, Groupon will even find a way to push forward after all.
Without the saturation, it is at least possible that the model could work, since there are fewer ways for consumers to just download 15 apps and spend their time chasing discounts. It might just be able to become the local discovery platform it always wanted to be — simply due to the fact that, at the end of the race, it was the last daily deals site left standing.
The Holiday Shopping Outlook, PYMNTS surveyed more than 3, consumers to learn what is driving online sales this holiday season and the impact of product availability and personalized rewards on merchant preference. Shares of the online payment processing platform Paysafe plunged to a record low Thursday Nov. So, what went so wrong, so fast? Recommended for you.
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