Daily deal sites create the perfect case of FOMO, or fear of missing out. We’ve all been enticed by a half price dinner at an upscale restaurant we wouldn’t normally be able to afford. The offer expires in 10 days and the price is just too good to pass up. This is the exact method that keeps daily deal sites around. Deal sites are either a retailer’s best or worst decision for business, which is the reason they peaked in the mid 2000s, crashed, revived, and exist again. This article will focus on the most popular daily deal sites for sellers in 2017.
DAILY DEAL SITES IN HISTORY
It’s ironic that daily deal sites like Groupon and LivingSocial, sites built on the premise to provide discounted deals for restaurants, activities, and travel destinations, premiered at the height of The Great Recession. It can also be seen as a happy coincidence, for consumers at least. At the outset, deal sites like these sound great for both parties. Customers get discounted products or activities, local businesses gain foot traffic and recognition, and the daily deal company still gains a share of the profit. So why do they sometimes flounder?
2011 saw the shutdown of of 798 daily deal sites. Customers were buying discounted goods and never returned, while businesses served overwhelming numbers and lost profits. Meanwhile, those that were buying deals from companies like Groupon and LivingSocial would often face discrimination from merchants for only purchasing goods when they had deals. Merchants and customers alike were growing tired of daily deal sites. The disgust was clear.
Since then, daily deal sites have obviously recovered. Groupon is still around, as well as thousands of other deal sites and deal or “lightening” sections of marketplace sites. Creating a sense of urgency around a sale is still a strong business model for marketplaces. It’s a way to grab attention quickly, make a quick transaction, and potentially create a loyal customer base.
BEST-KNOWN DAILY DEAL SITES
Daily deal sites still exist and make money everyday. In fact, you’re probably subscribed to one of their email newsletters. They’re a dime-a-dozen to find, so we did all the work for you. Here’s a list of the best-known daily deal sites for sellers and businesses in 2017.
Perhaps the most recognizable daily deal site, Groupon has been on the market since 2008. Groupon’s mission is to highlight local businesses through discounted offers, so it can be a great business model and mode of attraction for new customers of small businesses. You can pretty much buy and sell anything on Groupon, especially teeth whitening kits and massages. But be careful- deals have fine print limitations at the bottom and expiration dates.
Similar to Groupon, LivingSocial (which was purchased by Groupon in 2016) is a marketplace offering local daily deals from businesses and merchants. Their goal is to help local and national businesses grow, and work with business owners to determine the best type of deals and time to promote them to attract customers. Consumers can purchase restaurant, activity, and other leisurely activity deals.
Newegg is an online retailer selling everything from computer systems to home appliances, with an emphasis on teach gear and accessories. Newegg offers daily deals, too. Since they have a standing reputation in the eCommerce world, Newegg has a leg up on the competition in terms of authenticity. They brag on their ability to provide over three million product reviews, high resolution photos, and product how-to’s to help sellers and merchants make a clear decision to list their products for daily deals.
Originally called Deals.com in 2009, Overstock has grown to be one of the biggest discount goods marketplaces in business. Their inventory catalog ranges from jewelry to furniture, and everyday they host flash sales at 12pm E.T. where customers can sign up for flash deal notifications. Overstock builds anticipation by running a countdown until the sale begins. Big brands and independent merchants can sell their products on Overstock’s marketplace.
[Learn even more benefits and processes of daily deal sites]
The marketplace giant also hosts daily deals, limited-time deals, and lightening deals. Deals can be filtered by department, price, deal type and availability. Amazon entices shoppers by giving them the capability to click on an upcoming lightening item and save it for later when the sale begins. This way a customer’s item is ready to purchase as soon as a sale starts. Daily deals all start at different times. They are listed with a countdown clock and claim percentage so people can see how much of the product has been purchased and how much time they have left to buy the remaining quantity.
BuyDig offers a large array of consumer electronics. Their ‘blowout deals’ section offers electronics at up to 90% off with free shipping, but the catch is that they are on sale for a limited time only. Like Amazon, the expiration date for these deals varies.
TigerDirect is another marketplace that’s been around for a long time. They specialize in computers, computer components, and other various consumer electronics. Each day they offer daily deals under the ‘Daily Deal Slasher’ section. Customers can sign up via email to receive daily deal emails, which encourages and creates a sense of urgency to purchase items as soon as the sale starts. Items are offered with different shipping costs, and as you can assume, deals expire the next day.
You guessed it - 1Sale is another online marketplace offering “the absolute lowest prices” on jewelry, electronics, home and family, etc. Customers can get up to 90% off items during flash sales under the daily deals tab. Supplies are limited, so 1Sale customers are advised to sign up for email alerts. There’s also a countdown clock at the top of the website counting down the next new partner deals launch.
Daily deal sites have a niche for everyone and anything. It’s a strong business model if used correctly and the promotion can be great exposure for small/local businesses and independent merchants.
Let us know in the comments below what are your favorite daily deal sites!