Amazon.com is quietly launching its own deal-of-day discount offers in Chicago, a launch reported earlier by the Chicago Tribune. The Windy City, of course, is the corporate home of Groupon. Pause to let the symbolism sink in.
UPDATE: “Customers already know and trust Amazon.com for their online purchases, and now with Amazon Local, they can also find great deals right in their own city,” the company said in a statement. “AmazonLocal is a great way for residents of the Windy City to enjoy the restaurants, spas, and activities in their backyard.”
Amazon said it also has its AmazonLocal offering up and running in Seattle, Boise, the Los Angeles area and Palm Beach, Fla. For now, sales people from LivingSocial — a Groupon rival in which Amazon has an investment — are roping in the merchants for the Amazon local-deals offering.
6:36 pm on Aug 2, 2011 (gmt 0)
At what point is Amazon "so localized" that Amazon can no longer genuinely sustain the "we have no local nexus" ~defense to the obligation to start collecting State sales tax?
Just wonderin' . . . and hoping they shoot themselves in the foot - soon, maybe by virtue of this venture - for what they have been doing to their affiliates, local businesses, State sales tax collection, . . .
11:29 pm on Aug 2, 2011 (gmt 0)
With the last two searches I made Amazon had four results above the fold first page. Does this now mean Google will be reserving more unpaid (yeah, right) space on the front page for them?
12:15 am on Aug 3, 2011 (gmt 0)
Does anyone actually use these services as a consumer? We don't have the big brand local deal companies where I am, but the local newspaper keeps up an annoying shill with their version. Full page ads every day. Except all of the deals are garbage, I've never seen a deal yet I was interested in. I mean, how many 50% off spa packages can they promote fer cryin' out loud?
I like the idea, but do these companies have the deals to make this anything more than a bubble?
8:04 am on Aug 3, 2011 (gmt 0)
It is a bit of a no-brainer for Amazon to get into this business (even though they do have some sort of partnership with LivingSocial already). They already know where you live and possibly where you work (if you get things delivered there), plus they know what you like to buy if you are a regular customer. This data can be used to personalize offers to users, which should in turn increase conversion rates.
I have bought two deals so far from Groupon - one a fish pedicure for my wife and her friend that she was going on about and the other a paintballing day out. I have also been interested in a couple of hotel deals, but not bought one as yet. I agree that there are too many spa deals on there though!
11:28 am on Aug 3, 2011 (gmt 0)
I can't wait for the daily deal FREE day, as in NO daily deal spam (but free stuff would be ok too).