How To Use Groupon To Boost Your Ecommerce Business – Article Example
The article How to Use Groupon to Boost Your Ecommerce Business discusses the advantages of becoming a sales vendor using Groupon. The ic service the firm offers provides companies advertising space in the website where customers can obtain a sales discount voucher that can be redeem at the merchant’ store. “The actual cost of running a Groupon is typically a 50-50 split between Groupon and the merchant” (Beal, 2012). Due to the rapid rise of online stores Groupon also offers a sales service for online vendors. The company sells the products of online vendors through its website Grouponworks.com. Marlon Wilson, owner of Exclusive Phone Skin, is an example of an online vendor that had terrific results marketing through Groupon. His monthly sales went from $3,000 to $40,000 thanks to the service offered by Groupon.
Sometimes companies have to think outside the box to obtain the results needed to maintain a profitable business. Using the services of Groupon can enhance the sales total of a company due to the fact that Groupon currently has a mail list of over 36 million clients. Groupon puts the power of the internet at your mercy. It is important for companies that use services such as Groupon to have the capacity in inventory to accommodate the sales boom the firm will receive. Despite its utility and advantages some businesses consider Groupon to be too expensive. Companies with low gross margins are not suitable for doing business deals with a firm such as Groupon. The greatest benefit a firm will obtain by forming a partnership with Groupon is an overall increase in the level of sales.
Businesses in the 21st century must adapt to market changes and new strategic approaches such as delegating the marketing function of the firm to specialized companies such as Groupon that have the capability to reach millions of customers in a short span of time. The success story of Marlon Wilson demonstrates that the services of specialized marketing firms such as Groupon have the capability of jumpstarting your business. The future of Groupon in the business world is bright because the company has obtained 36 million active clients and the list is constantly growing everyday. Marketing alliances with firms such as Groupon are a win-win proposition.
Beal, V. (2012). How to Use Groupon to Boost Your Ecommerce Business. CIO. Retrieved September 25, 2012 from http://www.cio.com/article/709356/How_to_Use_Groupon_to_Boost_Your_Ecommerce_Business?page=2&taxonomyId=3058