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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...


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