Groupon Moves To Bulk Up Sales
By Hannah Ash, contributing writer
Flash Deal Retailer Launches Bulk Sales Program, Takes On Leading Retailers
In another large step forward for the online flash deal retailer, Groupon has launched a new bulk buying service for its money-savvy customers. Groupon Basics launched last Thursday, making over 100 products available to customers wishing to stock up on household basics including items such as vitamins, paper goods, and toiletries. The discount retailer also announced it plans to expand Groupon Basics to also offer grocery items in the future. This expansion to include convenience items customers regularly buy positions Groupon to take on both Amazon, Target, and wholesale clubs as a go-to provider of all things discounted.
Aaron Cooper, senior VP of Groupon Goods, issued a statement,"we're putting the bulk buying power of Groupon to work for our customers, helping them save on serious quantities of the things they buy and use every day — all from the convenience of their home.” The program will offer free shipping on all purchases over the $24.99 threshold; and will also, initially, give Basics shoppers Groupon bucks back equal to five percent of every bulk purchase. In offering free shipping above a threshold and Groupon credit back, the online retailer puts itself directly in competition with Target (and its Red Card program) and Amazon Prime. Both Target and Amazon have innovated in recent weeks to improve upon its deliverable stock-up programs, with Target expanding its subscription service and Amazon’s introduction of Prime Pantry.
Groupon’s Q4 earnings report, released in February, still showed losses; however, the online retailer continues to position itself as a one-stop shop for deal seeking shoppers.
2014 has been a fast-paced year for the deal provider, with the retailer purchasing fast-fashion platform ideeli as well as Living Social’s Korean entertainment arm Ticket Monster. In September 2013, the retailer purchased deal-based activity retailer Sidetour as well as European-travel deal provider Blink Booking. As the retailer continues to take on the competition with innovation and discounts, future quarterly earnings reports could well reflect Groupon’s many strategic expansion efforts such as Groupon Basics.