E Why Groupon No Longer Has The Edge In The Daily Deals Business

Ecommerce is one of the most lucrative investment options for businesses regardless of their sizes or location. Currently, it is almost impossible to think of a business that has opted to completely stay out of the internet, with even small retailers launching their online-based platforms to attract those that are always glued to the web, and especially, social media.

As such, there are always deals and promotions running in a bid to attracting new customers to the platforms. In addition to this, there are also platforms that are keen to feature promotional offers from different ecommerce companies. For instance, traders visiting platforms like Plusvouchercode.co.uk can easily access promo codes and coupons for large ecommerce sites like eBay (EBAY), Amazon (AMZN), and Sports Direct, among others.

This means that companies like Groupon (GRPN) which previously thrived on the success of the daily deals business can no longer claim to have an edge in the market. While the coupon codes offered for the top sites like Amazon and eBay may not result in massive purchase discounts, they do provide some level of competition that Groupon isn’t happy to sit with.

The company would have to keep offering more attractive deals in order to attract traffic to its platform. Groupon shares have failed to cross the $10 per share mark since February 2014 and are now trading at $3.70, which is 81.5% off its IPO price of $20 per share.

This clearly indicates how the company’s leadership in the daily deals market has been challenged since going public in 2011, and sadly, it can only get worse from here onwards. Groupon’s other business stream, Groupon Goods, is now probably its best chance of surviving the onslaught launched by other online retailers, large and small alike.

Social media is at the center of Groupon’s woes with nearly every online retailer now able to establish a connection with their customers via these platforms. Right now, whenever a company launches an e-commerce platform, the first thing they think about with regard to building an audience that can be converted into customers is social media.

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Disclosure: The material appearing on this article is based on data and information from sources I believe to be accurate and reliable. However, the material is not guaranteed as to accuracy nor ...

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Bill Myers 2 years ago Member's comment

#Groupon blew through a billion dollars before they were even able to breakeven. I'm amazed they've been able to survive as long as they have. They had a first mover's advantage, but it was such an easy to replicate business that there have been countless copycats. $GRPN

Alexis Renault 2 years ago Member's comment

I've also read how over time companies have found that working with #Groupon wasn't all it was meant to be and found it hurt them more than helped them to off a Groupon. But there are always deals on the site so it must work for some companies. As a customer I've generally been happy with my Groupon buys. $GRPN

Ayelet Wolf 2 years ago Member's comment

While I agree that #Groupon is in trouble, I have to strongly disagree with your rationale. Coupon and discounts sites are nothing new - they've been around far longer than Groupon. $GRPN

BreakingBad News 2 years ago Member's comment

Very true. Not to mention #Groupon is often featured on these very same coupon sites as another retailer to save money on. It's quite common to see coupons for $10 off, or 20% to 30% off a groupon local deal. $GRPN. And there are far better coupon sites out there than the one linked to in the article.