Groupon wants Costco’s customers
Groupon has launched a new online bulk-buying service, Groupon Basics, that promises to provide customers with big savings on more than 100 everyday HBC and household items.
The new service, which is available in the continental U.S., offers free shipping on orders of $24.99 and higher. As an introductory promotion, customers can get five percent back in Groupon Bucks to use toward future purchases.
"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," said Aaron Cooper, senior vice president of Groupon Goods, in a statement. "By adding this service to our marketplace, we’re providing shoppers with great value and yet another reason to always check Groupon first. Best of all, there’s no membership or monthly fees."
Groupon has put greater emphasis on direct sales to consumers in recent years as it reduces its reliance on daily deals. Groupon Goods, according to TechCrunch, achieved $1.87 billion in sales last year, up 25 percent from 2012.
- Groupon Basics Brings Warehouse Scale to Household Shopping – Groupon
- Groupon Goes After Costco and Sam’s Club with Groupon Basics, a Portal for Home Goods – TechCrunch
- Groupon Basics promises savings via bulk shopping – CNET
- Groupon Selling Razors in Bulk Furthers Move From Deals – Bloomberg News
Will consumers be drawn to buying in bulk from Groupon? Will Groupon be able to achieve profitability without charging a membership fee similar to warehouse clubs?