Groupon is a global marketplace where individuals can buy almost anything, anywhere, and at any time.
They enable real-time commerce in a growing number of areas, including local companies, travel destinations, consumer products, and live or active events.
At the same time, they supply merchants with advertising alternatives and tools to help them expand and manage their businesses.
We think that great people create great companies, and that starting with the customer and working backwards propels us forward.
Community is important to us on an internal, local, and global scale—it is critical to our company’s growth and the worldwide well-being.
They also place a premium on self-awareness, candor, lunch, and WiFi.
What Is Groupon?
Groupon is a website and mobile app that provides consumers with coupons, rebates on purchases, and group deals.
Restaurants, merchants, and manufacturers use Group on discounts to get visitors to visit their businesses or buy their products.
The term “Groupon” is a combination of the phrases “group” and “coupon.”
By hosting a discount deal and taking a piece of the earnings as a marketing fee, the company works with providers of goods and services.
This percentage varies, but the claimed average is 50%.
A group-on, unlike a traditional coupon, allows buyers to pay the discounted price for goods in advance by purchasing the deal.
The average groupon offers a 15% to 30% discount, but it can go as high as 90%.
A shop may, for example, offer $50 worth of food for $35 or a $200 spa package for $90.
Important Takeaways
- Groupon began in 2008 as an online coupon platform that offered daily bargains to local companies as marketing initiatives.
- In recent years, Groupon’s daily deal function has evolved into more of a coupon and rebate site, offering discounts on a broader range of products and services, including holidays.
- Because its core business was stalling, Groupon was said to be looking into acquiring Yelp, an online review site, before the end of 2019.
Groupon Details
Website
https://www.grouponcareers.com/
Industries
Technology, Information and Internet
Company size
1001-5000 employees
Headquarters
Chicago, IL
Type
Public Company
Founded
2008
Specialties
Technology, local commerce, social media, marketing, community, customers, customer worship, and e-commerce
Understanding Groupon
The original concept behind Groupon was to capitalize on the power of collective purchasing by providing a significant discount to a group of individuals if they purchased a product or service. That’s what the “group” in Groupon stands for. Supposedly, merchants would benefit since the coupon discount would be offset by the volume of new customers.
Until 2016, Group-on offers contained a “tipping point,” which required a certain number of customers, such as 200, to purchase before the merchant was required to honor the discount. The design of this model assists the business in making an initial profit to cover the upfront cost of offering the service. Groupon no longer requires a tipping point after 2016, because most deals achieve substantial sales volumes in a short period of time.
How Does Groupon Work?
Take a moment to learn the ins and outs of Groupon before you begin purchasing deals. Here is everything you need to know about Groupon:
- Groupon sells both goods and services.
- Before purchasing, read reviews.
- Understand the fine print.
- Not all transactions are made equal.
- Coupon codes and cash-back sites provide additional savings
- Payment choices vary by deal
- Groupon may not be suitable for all company owners.
Groupon sells both goods and services.
While you can still purchase tickets for discounted services or savings at local establishments, Group-on now sells a wide range of tangible things.
On the site, you may find the following and more:
- Travel and hotels
- Household items such as blankets and utensils.
- Flowers and jewelry
- Clothing.
- Sporting items and exercise equipment
- Tickets for entertainment.
- Vehicle servicing.
- Televisions and home security systems are examples of electronics.
- Food and beverages
- Animal supplies.
Customers can still search for discounts based on their location, but many of the deals are available to everyone, regardless of where they live.
“Like other email marketers, Group-on has prioritized volume over optimization and simplicity over customisation,” says Jonathan Treiber, co-founder and CEO of RevTrax, which provides offer management systems.
Read Reviews
If you buy something on Group-on , read the reviews to determine if other customers agree the item is accurately described on the website.
When it comes to services, look for red signals that could indicate a shady bargain, such as no ratings or very few sales.
Check the company’s website and social media pages to ensure the information on Group-on is correct. If the deal appears to be too good to be true, contact the company directly to check they placed it. If you get counterfeit items or a forged voucher, please contact Group-on immediately.
Understand the Fine Print
Do not purchase any bargain vouchers unless you have thoroughly reviewed the redemption conditions. “Every bargain has constraints in terms of when the promotional value expires and what the deal can and cannot be utilized for,” says Kelly Goldsmith, associate professor of marketing at Vanderbilt’s Owen Graduate School of Management. “It may be associated with a minimum spend at the vendor, and not all chain vendors may take the Group-on .”
Additional fees and charges, limits for new customers only, or access to a limited menu or range of products when redeeming a Groupon deal are also fine print features. Some Group-on bargains are only valid on certain days.
Check the return and cancellation policies as well. What happens if you buy a Group-on for a weather-dependent activity, such as whale viewing, while on vacation and the firm cancels? You may not be able to reschedule if you do not reside in the area, so make sure you can get a full refund.
Not All Transactions Are Created Equal
At first, it wasn’t uncommon to find Group-on deals for 70% off retail prices. Nowadays, you can get a haircut for 35% off or a vehicle wash for 10% off.
Travel packages and real goods may get deeper discounts.
However, keep an eye out for inflated retail costs.
Just because something is featured on Group-on at a significant discount does not imply that it is a good deal.
Customers must still conduct research, compare pricing, and read reviews to ensure that their money is being spent properly.
Promo Codes and Cash-Back Sites Offer Additional Savings
Customers can save even more money when ordering from Group-on by using promo or coupon codes.
These codes can be obtained on free deal aggregators such as Slickdeals, DealCatcher, or the browser extension Honey, albeit they are not always available.
A common coupon can save you 20% to 30% off the price of some Group-on items.
“One of the things I enjoy about Groupon is that it works with (cash-back and rewards providers),” says Jones. Companies such as Rakuten and Swagbucks provide up to 8% cash back on Groupon purchases made by their users. The free sites also provide their own coupons for more savings.
Payment Options May Vary Depending on the Deal
While Groupon accepts all major credit cards and PayPal for purchases on its website, retailers’ payment requirements may change when it comes time to redeem a certificate. For example, not all merchants take American Express. This information, however, should be given on the deal page and is another reason to read the fine print.
If you purchase a deal redeemable at Costco, keep in mind that it only accepts Visa credit cards.
Many restaurants providing Groupon+ deals may have additional restrictions, such as prohibiting the use of non-reloadable prepaid cards and requiring debit cards to be run as credit to qualify for cash back.
Is Groupon Legit for Businesses?
While Groupon is a legal way to sell goods and services, it may not be appropriate for all businesses.
“When a vendor offers a Group-on (discount) with little to zero margins, the vendor assumes a lot of risk,” Goldsmith explains.
“He promises himself that all of the sacrifice will be worth it since they will undoubtedly reap the downstream benefits of these clients… returning and paying full price later.”
However, Group-on users are unlikely to become repeat clients and will instead go on to the next firm providing a good deal.
Regardless, businesses may find it advantageous to tap into Group-on’s tremendous marketing potential.
The disadvantage, according to Treiber, is that merchants now have little control over how their deal is circulated and promoted by the online marketplace.
Nonetheless, larger organizations with larger expenditures may find Group-on to be a beneficial sales channel.
Consumers that read reviews and keep an eye out for deals will surely benefit as well.
Examples of Groupons and Grouponing in the Real World
Daily deal ads are often delivered to consumers via the Group-on app, location-specific email lists, or social media sites.
Every day, the company publishes at least one local promotion with a specified purchasing time ranging from a few hours to a few days.
The discount is usually good for up to six months, and the Group-on amount is redeemable indefinitely.
At the moment of service, customers redeem a code or a printed coupon.
Because the discount is prepaid, the customer only owes the merchant for services that exceed the amount of the groupon.
A groupon’s “fine print” section details the specific restrictions for each deal, such as excluded days or products.
Merchants, on the other hand, may apply unadvertised restrictions on redemption, such as a limited menu or inflated pricing for Group-on customers.
In recent years, Groupon has incorporated new services that broaden its offerings beyond the original Groupon business model. Group-on Goods offers product discounts, Group-on Live offers ticketed events such as concerts and sporting events, and Groupon Getaways offers vacation packages and travel savings.
Do I Qualify for a Groupon Refund?
When seeking to secure a refund for your Group-on, you must always keep the Group-on refund policy in mind. All Groupons are classified into four kinds, each with its own set of rules:
- Local Deals: Can be returned for a refund within 3 days of purchase for a full refund.
- Groupon Getaways: You can get a refund up until the “book-by” date.
- Groupon Goods: Refunds are available within 30 days of delivery.
- Groupon Live: Refunds are not available after the purchase date, unless the event is canceled or rescheduled.
Final sales are not refundable or returnable.
Furthermore, after you’ve viewed your voucher, you won’t be able to cancel the order.
How to Cancel a Groupon
Once you’ve determined which category your Groupon fits into and whether you qualify for a cancellation, you can proceed to cancel and receive a refund.
With the exception of Groupon Goods, follow these instructions to cancel your Groupons in any of the categories indicated above.
You must return Group-on Goods instead.
- Launch your favourite browser and navigate to Group-on.
- Click Sign In.
- Enter your login information and click Sign In.
- Once logged in to your account, go to My Stuff > My Groupons.
- Click View Details.
If you choose View Voucher, you will not be able to cancel your Group-on.
- On the left side of the page, click Edit Order.
- On the left side of the screen, click Cancel Order.
If you are in the cancellation window and do not see the option to self-cancel, please contact customer service.
- Select I want to cancel my purchase, then Cancel Order.
If you miss the cancellation date for your Groupon, you can exchange it for a different local bargain.
- You may be asked for confirmation again; select confirm.
When your order is successfully canceled, you will be notified.
How Do I Return My Groupon Goods?
Groupon Goods cancellations are handled differently than the other categories. If you decide to cancel your order before it delivers, the procedure is same. If your order has already shipped, the steps are slightly different.
- Go through steps 1-5 of the cancellation process outlined above.
- Choose Return Package.
- Create your prepaid label.
- Apply the label to the package and send it back to Group-on.
If the Groupon Label is absent, returns are not eligible for a refund.
- Once the refund has been processed, you will receive an email from Group-on with the subject “Your Refund Has Been Processed.”
The refund may take up to 10 business days to appear in your account.
How to Trade In your Groupon?
If you do not cancel within the time frame specified, you may exchange your voucher.
- Contact Groupon customer service to enable the Trade In Voucher option.
- Go to My Stuff > My Groupons and click Trade In Voucher.
- To complete the trade-in, click Confirm.
After you trade in your voucher, support usually offers you 24 hours to spend your Group-on Bucks.
Groupon’s Advantages and Disadvantages for Businesses
In exchange for supplying businesses with a large client base via the company’s enormous email list and social media presence, Group-on receives a share of the daily deal revenues.
If Groupon customers return after redeeming the coupon, recommend the business to their friends, or spend more than the value of the groupon, the merchant can profit from the discount.
For firms with fluctuating operating costs, Group-on discounts may be unproductive because they frequently require additional labor and materials to meet a sudden rise in demand. Daily offers may also attract customers who are not in the merchant’s intended demographic, lowering the rate of repeat visits.
How Does Groupon Make Money?
Group-on (GRPN) has become a household name among bargain hunters since its inception in 2008.
Customers are connected to local commerce through the sale of vouchers and coupons for discounts to brick-and-mortar companies.
In this respect, Group-on gets revenue by acting as a middleman, which is one of the oldest business concepts.
The organization earns money from both products and services in three categories: local, goods, and travel.
Using a Group-on voucher, buyers can purchase goods and services at up to 50% off in some situations.
Groupon was founded in November 2008 and immediately gained popularity for offering big discounts to local companies.
The company went public in 2011, but revenues have repeatedly declined since then due to growing competition and the effort to sustain consumer popularity. Recently, Group-on has altered its business model from a voucher-based approach to a card-linking one, in which a customer earns cashback after purchasing a product listed on the Group-on platform with a specified connected credit card.
Group-on’s financial filings distinguish between two categories of income: gross billings and revenue. The gross billings figure represents the total revenue generated by the sale of products and services, excluding taxes and refunds. Revenue is the sum of transactions where Group-on served as a marketplace less the service or product provider’s contribution.
Direct revenue is also generated by the sale of item inventories through the company’s online marketplaces.
Group-on reported $5.2 billion in gross billings and $2.6 billion in revenue for the fiscal year ending December 31, 2018.
Revenue fell down from $2.8 billion the previous year, according to the company’s 2018 annual report.
As of December 31, 2018, the corporation has 48.2 million active customers, down from 49.5 million the previous year.
In 2018, net income was $2 million, and operating cash flow was $191 million.
Registering for a Groupon Login
Customers who sign up for Group-on can do so [+] using their Facebook account or by creating a new account.
You must enter your complete name, email address, establish a unique password, and agree to the website’s terms and conditions.
Selecting a Groupon Login Password
A minimum of six characters are required when creating a password. The page does indicate that you must use a specific character to progress. You have the option of combining numbers, letters, and characters.
Filling Out Your Groupon Registration
Completing your registration entails filling out the sign up page. The registration process is complete once you click submit.
Accessing Your Account
You can use your Facebook login or enter your email address and password to access your account.
Password Reset for Your Groupon Account
Group-on offers numerous methods for resetting your password.
The first method entails accessing your account settings. After logging in, go to My Group-on and then to the My Account option. Scroll down to the bottom of the website to find the place where consumers can update their password. Enter both your current and new passwords twice. When you click Save Changes, your password will be updated. The second method is to go to the sign in page and click the “lost password” link. You will enter your email address after making your decision. You will receive an email with instructions for changing your password. Select the link and proceed as directed.
- Locked Out: If you are unable to access your account, please contact customer care [+] or reset your password.
- Forgot Password: Customers who have forgotten their password must pick the “forgot password” option on the sign in page.
Following your decision, you must enter your email address.
You will receive an email with instructions for resetting your password within minutes.
Your password gets reset when you follow the instructions.
- Changing Your Password: To change your password, go to your account settings and click the reset button, or go to the sign in page and select the “forgot password” option.
Cancelling Your Groupon Account Login
Customers who want to cancel their login must sign into their account and go to the account settings page.
Remove the Credit Cards symbol by selecting it.
After you make your option, your account and login are both canceled.
Groupon’s Service Revenue Business
Group-on provides attractive discounts and coupons, acts as an advertising, stimulates sales, ensures minimum revenue, and aids participating businesses with preparations.
Group-on receives a percentage of all sales made on the website in exchange for its advertising services and sales help.
Depending on the vendor, this proportion is usually around 50%.
Assume a local salon is facing a sales slump and decides to use Group-on to attract new customers.
The salon owner decides to give a $50 cut and color service, which is generally priced at $100.
Group-on charges a service fee of 50% of the sales income.
The deal will produce $1,500 in income from 30 new consumers, with the salon receiving $750 and Group-on receiving $750.
When a bargain is posted, people who bought the Group-on receive it regardless of how many were purchased.
In 2018, gross billings in the service revenue business was $3.77 billion.
Group-on has purchased a number of competitors, including the daily-deals site LivingSocial, the UK-based Cloud Savings, and the analytics firm Swarm Mobile.
Groupon’s Product Revenue Business
Groupon’s product revenue business is simpler than its service revenue business.
In the event of direct sales of items to consumers via marketplaces online on its website and app, Group-on considers the revenue of each purchase as the customer’s purchase price.
In 2018, gross billings in the product revenue industry totaled $1.43 billion.
To enhance the number of merchants on its site, Group-on collaborates with other marketplaces such as GrubHub and Live Nation.
Plans for the Future
Group-on’s goal is to bridge the gap between ecommerce and local, brick-and-mortar businesses.
Group-on is focusing on retooling its user experience to be as efficient and frictionless as possible, extending its platform power to merchants by allowing them to sell directly to customers through Group-on, and growing its foreign company to match its larger North American branch.
The organization has undergone considerable changes in recent years, including the above-mentioned transition away from vouchers and toward card-linking arrangements.
Though revenues have continued to fall in recent years, Group-on is committed to adapting in order to better serve customers and companies alike.
Key Challenges
The long-term viability of Group-on’s business model is a hotly debated topic.
A large influx of clients paying a fraction of the retail price may be more labor than it’s worth for some firms.
Furthermore, some opponents point to a perceived reduction in the quality of Groupon’s services in recent years as evidence of the company’s eventual collapse.
Maintaining the Marketplace
A healthy marketplace with significant recurring transactions is critical to Group-on’s success.
If transaction rates fall, businesses will be less willing to use Group-on’s services, and the market may completely collapse. Following Group-on’s early achievements, the voucher model lost some of its luster, forcing the company to discover new methods to engage merchants and customers. On the last year, Groupon has also invested nearly $400 million in marketing its services and goods, with the goal of increasing user involvement.
Group-on has a difficult battle to increase customer interest and turn around income. However, the corporation has been actively involved in new ways that appear to be quite promising.
FAQs
Is Groupon stock a good investment?
The consensus rating for Group-on stock is Hold, based on the current 1 sell rating, 3 hold ratings, and 1 buy rating provided by 5 analysts in the last year.
How much is Groupon worth now?
What is the current share price of Groupon Inc?
The share price of Groupon Inc (GRPN) on June 17, 2022 is $14.89.
Does Groupon ever do 30% off?
By entering this Group-on promo code at checkout, all VIP customers can receive an additional 30% off their next online order.
Save up to $50 on local deals such as restaurants, fitness classes, spa treatments, activities, retail shopping, and more.
VIP customers receive a discount.
Is there a promo code provided by Groupon?
This is a limited-time offer available to a limited number of clients.
With this Group-on coupon code, you can save an extra $10 on local deals, travel discounts, tech & devices, clothing, getaways, restaurants, activities, and more.
Simply insert this Groupon promo code at the checkout. Some limitations may apply.
How do I earn free Groupon dollars?
When you recommend a friend to Groupon, you can earn $10 in Groupon Bucks.
Get a sign-up link from here, have your buddy sign up, and if they buy a Groupon for $10 or more within 72 hours, you’ll get $10 in Groupon Bucks.
How does Groupon work for merchants?
Groupon collaborates with merchants on a revenue-sharing basis.
The corporation collects all of the money from clients who purchase a deal, and then distributes the merchant’s part with periodic installments over the life of the deal.
How many coupons does Groupon have?
There are currently 49 active Groupon promo codes and discounts.
How can I obtain a Groupon coupon code?
When you log in to your Groupon account, your user name appears in green in the top right corner.
When you hover your mouse over this, a drop down menu will display.
To acquire your Groupon code and security code, go to “my groupons” and examine your voucher.
What is the app Groupon?
You can buy and redeem Groupon deals directly from your mobile device using the Groupon Android app. Track the location and expiration date of your purchased vouchers. Never print another voucher or clip another coupon to save ink and avoid painful paper cuts.
How much does it cost to join Groupon?
Groupon Select members pay $4.99 a month and receive discounts throughout Groupon, including local services, experiences, travel, and goods (plus free shipping)—with discounts applied automatically at checkout (no promo codes required) and no savings caps or order minimums.
