We believe information is the most important tool to start working and expanding on different marketplaces. This week we will talk about Groupon and the pros and cons.
Before we jump in the pros and cons of selling on Groupon, let’s talk a little about what it is. Groupon was launched in 2008 and it is based in Chicago. It is a marketplace whose main characteristics are the offers and special discounts offered on different products. For customers, the goal is to help them save money for their purchase, and for sellers to attract more and new people to their business.
Now let’s talk about the pros and cons of selling on Groupon:
- The site attracts a lot of customers. Since Groupon is highly known for its offers. This site attracts people that usually are ready to make a purchase. The traffic the page attracts also allows you to provide a better price for new customers.
- Advertisement. If you are starting your business providing promotions can be a great way to give visibility to your brand. Providing discount codes can be a great deal for new customers. Some of them were waiting for an opportunity to save the money on the specific service you were offering.
- Also, you can use the platform to provide great deals on products that are slowly moving. This platform can help you sell and advertise new products and services and to give visibility to your business.
- One point against the platform is related to the customer you acquire. Since customers that purchase on the site are looking for deals. These customers might not be willing to purchase more than the price of the products they were looking for.
- These deals might not be good for your brand. Since people who purchase using the platform are mainly focused on pricing. This is a factor that can be harmful to your business since they may not be loyal to the brand. Or they might not be willing to go back.
- Also, deals might not be profitable. When using Groupon take into account that you are already offering promotions on the site. You will also need to add the price of the fees the Groupon is required to collect before providing a price.
We hope this list with the pros and cons of selling on Groupon provides you a little perspective. Always take into account that choosing the right platform, based on the benefits and the products or services you offer, will allow you to thrive on this new journey.
Also, we want to recommend you to check our article with the 4 Essential Ingredients of a Winning Online Product Listing. And find more about our services clicking here.