Tuesday, October 5, 2010

Groupon and the business model

Groupon www.groupon.com- enabling a group of people to purchase a deal online as a group, with coupon sharing and purchasing features, categorized by city for better buyer gathering. There are many similar sites for promotions and sharing the similar business model. Merchandisers pay service fees (or commission) to groupon, and groupon will provide the daily deal news and sell the coupons, the buyer redeem the coupons (via printing or mobile) at merchandiser store. This is a win-win strategy for both seller and buyer, and groupon makes profits via commission (or sth like that), which is very a good business model - very similar to real world marketplace which provides the platform/location for both seller and buyer, and itself gets the rent. There are more and more features can be added to groupon site, but the essential value for seller and buyer is win-win situation. Sellers can sell more and advertise themselves with promotions, and buyers can get overwhelming deals in local city stores.

Similar Sites:

Traditional Coupon Site:
http://dealsea.com/  - guess it profits from link, similar to Google Adsense
http://www.couponsherpa.com/ - this site is well-organized, and easy to find coupons for big merchandisers

1 comment:

  1. Pretty! This has been a really wonderful post. Thank you for providing these details.