Amazon Invests $175 Million In LivingSocial

December 3rd, 2010 at 11:41 am
 


There seems to be some excitement going on in the ecommerce field, at least in the US retail area. Amazon.com, currently known as the largest online retailer, may be getting into a position where another giant may be entering on its market. It seems that online search giant Google, based on their recent acquisitions, may be trying to get a share of the online retailing market.

Recent reports say that Google is on the verge of acquiring online coupon service Groupon to somehow possibly boost up its initial foray in the field. And Amazon.com may not be looking at this without doing anything. Just recently, Amazon also has invested in Groupon’s smaller competitor in the online coupon market, LivingSocial to the tune of $175 million.

Now that both competitors have been trying to get some further foothold on market share, it would be quite exciting times ahead and would certainly bring a boost to ecommerce in one way or the other. In the case of LivingSocial, it certainly needed a boost in terms of investment to fuel its further growth worldwide. The giants may be investing in them not necessarily for their popularity, but for the scope of sales opportunities that may be able to bring.

Sites like Groupon and LivingSocial have grown with a steady network of users that act as an organized sales group. It would certainly help Google’s aim to establish its own market online that may effectively make it less dependent on online search revenues alone. In the case of Amazon, well it might just be trying to stretch out its reach by trying out other means to further widen its reach.

 

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