Daily deals website is yet another method of marketing rather than a way to increased profit. Though there is success stories of small scale business growing up to 30% profit compared to the baseline value, daily deals websites was not a point of interest in trade. The recent recession period of 2008-2009, saw the exponential growth of daily deal websites. These websites offered people live a high life with money savings. There are quite a lot of daily deals websites in the internet which has several thousands of member users who grabs the benefits. Daily deal websites are seen as one of the most viable e-commerce business model and is being adopted by more number of trading parties.
A daily deal website would offer products or services for a discounted rate or with some kind of promotion, for a limited amount of time like a day or two. Retail stores, restaurants and bars, medical services, educational services, tour packages, auto services and so on are some of the regular products and services that opt for a deal in the daily deal websites.
This e-commerce business model works on the principles of group purchasing. In the group buying platforms, retailers would offer discounts if they get a specific number of customers purchasing together. Yes of course it’s an adjustment made on the RRP value of the product or service that enables the retailers to give out the discount. However, for the consumers its way to purchase the expensive goods at much discounted price. To receive notifications about newer deals and offers, one has to be the member of a daily deal website. The members would receive email alerts, postal alerts or SMS regarding the new deals.
There are third party websites like “Yipit” which would co-ordinate deals from various daily deal websites. The member of such a website would receive alerts about daily deals for products of his choice from several different websites. There are a maximum and minimum number of deals that will be set up in the website. Once a deal is live, website members would receive alerts. They can purchase the tickets online, but won’t be charged instantly. Once the required number of deals is met the deal website would start charging the consumers credit cards. This is to ensure a balance for the retailers. They should possess enough product stock to run a deal, otherwise instead of generating revenue, the start ups might end bankrupt.
On receiving the alert, consumers can log into the website and purchase the discount tickets that can be redeemed at the store or they can walk in to the store directly to shop. The daily deals sites enable fresh business to reach a surplus profit par above the baseline. These sites also aids in generating good traffic to the product website as well. Hence forth it’s seen as an effective marketing methodology as well. The revenue generated by making deal on the daily deal website might not be enough to add onto the profit rate. However, it would surely generate fair revenue which will cover the expenditure involved in using any other medium of advertising and marketing.
Collective purchasing preeminence is the methodology adopted in the daily deal e-commerce business model. Creating a daily deals website has become easier with the advent of custom software that would help you to build secure websites. The complex transactions and other back end calculations behind any deal can be easily dealt by these powerful administration tools. However, rather than jumping into making a deal online, it is always recommended to run enough studies and research to ensure the product could be a success in such an environment.