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You are here:> News > Company News > Groupon tests new e-commerce model in the UK

Groupon tests new e-commerce model in the UK

Article Source : Responsible editor : admin Popularity : 1272 Published time : 2011-09-14

Netease Science and Technology News on September 13, according to foreign media reports, the group buying website Groupon Inc began to offer discounts on products sold on the Internet in the United Kingdom, promoting the company to enter between Amazon.com Inc. and eBay Inc. Direct competition.

Chicago-based Groupon is promoting a discount of more than 80% for its UK customers. When users purchase a product, they will receive a code. By using this code, they will be able to enter the provider's website and enjoy discounts for online orders. .

Most of Groupon's revenue comes from daily group purchase transactions with local restaurants, hotels and other merchants. It may increase revenue growth by adding coupons to e-commerce sites.

"With its ability to send discounts to 115 million email subscribers, Groupon is able to attract users who are usually in love with Amazon and eBay," said Scot Wingo, CEO of U.S. online retail solutions provider Channel Advisor. He said: "The advantage of Groupon is that it can reach more than 100 million users every day, but Amazon and eBay cannot do it. Just by the size of the subscriber base, they can drive sales of 500 million to 1 billion US dollars. "

Groupon's feature called National Deals has provided users with customised photo albums from UK-Bedding mattresses, Whitening Professionals' teeth whitening and Albelli. In each case, Groupon can complete more than 10,000 transactions.

"It seems really good," Wenger said. "I guess once the time comes, Groupon will bring this service to the United States."

Groupon spokeswoman Julie Mossler declined to comment.

Groupon chief executive Andrew Mason has stepped up his proactive product promotion in an internal memo on August 25, saying that the UK e-commerce business has been successful. "We sold $ 2 million worth of mattresses in the UK in just one day," he wrote in the memo.

Groupon's main competitor in the United States is Washington-based LivingSocial, which is also experimenting with new group buying models. LivingSocial plans to promote a group purchase with Whole Foods Market, where users can buy groceries worth $ 20 for only $ 10. LivingSocial spokesman Andrew Weinstein said this was the first group buying company to launch a nationwide grocery group buying.

Groupon is also expanding its services in other ways. The company sells discounted concert tickets through a partnership with American ticketing company Live Nation Entertainment and works with online travel site Expedia to promote cheap hotels.

Groupon filed an IPO (initial public offering) application earlier this year and plans to raise $ 750 million through the IPO. But sources revealed earlier this month that Groupon has postponed its IPO plan due to stock market turmoil. (Compiled / Horsan)

(Source of this article: Netease Technology Report)

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