When you go shopping, do you use coupons, daily bargains, and discounts as part of your shopping routine?
If the answer is “yes”, then you’ve probably heard of the organization Groupon.
If you haven’t heard of Groupon, it’s the internet’s largest coupon and daily bargain website and we have already written about it's affiliate marketing campaign here: Smarter Entertainment with Groupon!
The company has 50 million users and markets over 100,000 coupons daily.
The company offers deals on almost anything, from bike shops and clothes stores to café and pottery deals.
Whatever you’re looking for, Groupon will help you find the best deal.
Groupon didn’t start off as this big coupon company.
In this short article, I’ll go into detail about the company’s history, business structure and some fun facts. To start, let’s go over a summary of Groupon as it is today.
In the last year, Groupon was selling 93,054 coupons on average per day and still remains the only company that offers a service like this on such a large scale. Currently, Groupon is valued at $3 billion. Groupon is recognized and used all over the globe. It has a standing in 31 different countries and in 6 different continents.
Groupon’s Company History
Andrew Mason founded the company in Chicago in 2008. When Andrew Mason’s former employer, Eric Lefkofsky, liked the idea, he gave Andrew the initial investment to help start the company. The purpose of the company was to recruit groups of people who want the same product or service and buy it at a discounted price. The company’s goal caught on to other people and it soon became successful. Here are a few other impactful events Groupon experienced:
2010 - Groupon was accessible in over 250 cities.
2014 - Groupon bought Ideeli.
2015 - Groupon bought OrderUp
2016 - Groupon sued IBM
2016 - Groupon bought LivingSocial.
How Groupon Works
Let’s take a simple scenario of buying food:
Mike wants to buy a pizza for dinner and decides he wants to try a different restaurant tonight. He searches on Groupon.com for discounts and deals on this new restaurant. When he finds one, he purchases it online at the discounted prices before he picks up his food. Mike will only get the deal if other people participate. To help Mike get his desired discount, Groupon urges him to share the coupon with his friends.
Why Groupon Works for Consumers
According to data taken from user’s shopping habits, Groupon produced these statistics:
Groupon’s average discount is 50%.
Groupon’s shoppers save over $20 billion.
Individually, Groupon’s shoppers save $500 a year by using Groupon.
Why Groupon Works for Sellers
Sellers can advertise for free on Groupon’s website.
Groupon discloses customer data to sellers for free.
66% of sellers gain a profit from using Groupon’s
Where Groupon Ranks
Groupon ranked in the top 5 eCommerce retail brands along with Apple, eBay, Walmart, and Amazon.
Over the years, Groupon has acquired 36 other companies and was valued at $13 billion in 2011 and its market value is $3 billion dollars.
In terms of revenue growth, it started at $14.46 million in 2009 and grew to $18 billion in 2017.
Groupon doesn’t just generate revenue, it also gives back to the community through it philanthropy program.
Groupon introduced its Groupon Grassroots campaign to help reveal local issues and rallies. The company donates 100% of its profits earned through Groupon Grassroots to a charity or neighborhood program.
Infographic shared by https://www.16best.net/blog/all-you-need-to-know-about-groupon/