Articles about Group Buying

Top 10 Benefits of Daily Deals and Online Coupon Business [Infographic]

Wednesday, October 2, 2013

benefits of daily dealsOwning a daily deal or online coupon business can be financially enriching and emotionally satisfying experience. Thousands of new daily deal and group buying websites emerge each year. Certainly the daily deal industry has its pitfalls and challenges. However, there are many advantages of this business, e.g. starting a digital coupon business often requires less financial resources and less time than than owning a brick and mortar company. 

In this infographic we show main benefits of starting and running a digital coupon or daily deal business.

Why Daily Deals is Still One of the Best Ecommerce Business Models

Thursday, August 29, 2013
Daily Deals Business Model Advantages
After the skyrocket growth in 2010 and 2011, the industry of daily deals has experienced some downfalls recently. The effectiveness of Groupon business model is often questioned in mass media and many authors are focusing on the problems associated with daily deals. There can be no doubt that it is very important to be aware of all potential risks before entering deal of the day space. However, exaggerated concerns about hidden costs and dangers of deal promotions make some businesses keep away from this powerful marketing solution. That is why we would like to shed light on the beneficial sides of daily deals, which still remains an efficient e-commerce model for generating profit and driving sales.

The Dangers of The Daily Deal Business

Friday, August 23, 2013
Risks of Daily Deal Business
The daily deal business model provides lots of benefits for business startups. Entering coupon industry is relatively easy and inexpensive. However, there are many dangers and risks awaiting entrepreneurs on their way to building successful and profitable group buying or deal of the day business. Being aware of a problem is the first step in preventing it from occurring. So, let’s explore the key pitfalls to avoid when running a daily deal website.

1. Small business instability.

Daily deal promotions is a beneficial advertising option for merchants because it does not require an upfront payment from them. This also makes deal promotions available to startups and companies with a limited budget. Unfortunately, this category of businesses have a high failure rate. Besides, new companies can have some stock shortages or other issues caused by the lack of resources and experience. Daily deal companies should be careful when choosing merchants to partner with and should make at least brief analysis of their financial stability and ability to provide quality service to clients.

Coupons & Happiness [Infographic]

Thursday, August 1, 2013
Coupons is Happiness
According to the recent study “Your Brain on Coupons: Neurophysiology of Couponing” conducted by Professor of Neuroeconomics Dr. Paul J. Zak at Claremont Graduate University, coupons can help make shoppers happy and relaxed. This is the first known scientific research of the neurologic effects of couponing performed in a laboratory setting. Dr. Zak’s team aimed to explore what happens to the human body when people receive a discount offer. The findings show that the levels of oxytocin, a hormone of love and happiness, rise when shoppers receive a coupon. In fact, after getting a saving offer, oxytocin increases more than from cuddling or receiving a gift. Coupons were also associated with the reduction in several different measures of stress. So, the results of the study suggest that receiving coupons decreases anxiety and can directly impact happiness of people.