Groupon has left a mark on our digital markets. The popular retail service offered millions of businesses a response to incentivize customers to buy products at a reduced rate in order to spark market demand. The company left its mark as a digital coupon company, but early reports show that Groupon is attempting to explore traditional store venues as well.
"The Chicago-based company has quietly started testing a new concept called Groupon Stores that will let just about any product brand or retail operation set up a Groupon storefront to sell their wares" Sources inside Groupon told Re/Code.
The service debut quietly on Wednesday, and a number of stores have already joined Groupon Store's beta program, including CRG Sports, Beston Shoes, IceCarats and more.
But how is Groupon making money off of this package? Sources said that the company "has been telling businesses that are part of the Groupon Stores beta program that the stuff they sell through Groupon has to be at least 5 percent cheaper than anywhere else on the Web. Groupon also has told businesses that it will take a 15 percent cut of these sales." However, this could change in the future.
While this venture does offer some great opportunities for businesses, it isn't designed to be a replacement for companies setting up their own online stores.
"Unlike Amazon and eBay, the Groupon Stores marketplace is meant for a select number of your products that you're looking to liquidate or promote through a discount," Groupon Store's FAQ states. "There are no listing fees, but we do require that products be placed at lower prices than Amazon, eBay, or anywhere else they may be listed online."
PR Chief Bill Roberts confirmed the project on Wednesday, referring to it as "a huge, untapped opportunity for us to turn the Groupon marketplace into even more of an online and mobile shopping destination by increasing our inventory and bringing the power of our platform to even more merchants."
Groupon Stores comes out nearly a year and a half after Groupon released a tool that lets businesses set up a Groupon deal without having to work with a Groupon representative.
