Monday, May 12, 2014

Why I think Costco Should Buy Groupon?

The first time I heard about Groupon, was through word-of-mouth. A lot of my friends were excited about the deals that they could get by signing up for Groupon's email deals. Trying new restaurants armed with a Groupon was something that I definitely wanted to try out. Unfortunately my Groupons are still unutilized and I need to find a way to redeem them at face value.

Groupon has been steadily changing in the past few years. They have a Small Business Division called GrouponWorks. Using the power of collective bargaining they are now selling more and more things that you normally do not associate with a bargain.

My recent purchases from Groupon

  1. Shoes from Puma
  2. A bluetooth car adapter
I am also eyeing the Michelin Wiper Blades for $21.99 or a elliptical and  other useful goods from the Groupon Goods.

There is a war brewing up in the online goods marketplace. 
  • Amazon is trying it's own delivery service and also trying to get consumers to buy from Amazon Fresh in Southern California, San Francisco and Seattle. Amazon also has a stake in Living Social.
  • Google Shopping Express dangles the same day delivery to make us buy online, currently available in San Francisco only.
Now as the Groupon Goods business expands and recently Groupon introduced Groupon Basics. According to Motley Fool   "a service that will offer discounts on bulk purchases of 110 home goods in select categories, including personal-care items, consumer products, and vitamins"

We all love Costco, you get a bargain but you have to usually buy in bulk. What if you get the basics delivered to you for free without you going to the store? The Dollar Shaving Club does it. Sends you what you need for a few dollars a month.

A combination of Groupon and Costco would not make me stop going to Costco. I love going on the weekends to taste the foods that they display but when it becomes a chore to drive there on a weekday after work to buy something , I would prefer the alternative.

Groupon has a great base of customers who signed up for their service, Costco has the network and deals and the goods. Costco has a online shopping ability but not as cool and friendly as Groupon. When you get the E-mail every day that offered  you shirts, sauces and snacks, I bet we would be buying and ordering more. Do you think this is a good idea? A win win for both companies?

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