Daily Deals Site Outlook Not As Rosy As Before

April 19th, 2012 at 9:40 am

It was just only around sometime ago that the Web has been by daily deals sites by storm. The industry that Groupon somehow pioneered suddenly became the rage as people were attracted to the many deals being offered at substantially low prices. That hunt for such Web deals caught on with many online users which then gave birth to a new online industry. But after that rapid rise to online prominence, what has become of the state of the daily deals sites nowadays? Many experts say that it might not be as exciting as before.

Daily deals sites may still garner some level of interest among online users. But it is not at the same level as it was before. According to analysts, the daily deals industry still seems to show some growth. But it is no longer as robust as the growth that it enjoyed a year ago. But in terms of industry expansion, the number of daily deals sites have somewhat fell as some of them has dropped out or has stopped putting out deals.

According to the deal industry tracker Yipit, there were around 845 daily deals sites during the time when it began tracking the state of the daily deals industry. As of current update, it indicated that there are now just about 400 of them still putting out deals for its online visitors. That’s around more than half that has somehow ceased operations or may have moved on to something else.

It may be quite puzzling that reports of the daily deal audience still growing but with many of the sites no longer operating as they first set out to do. But it might just be a case of a business surviving amidst tough competition. Those lesser daily deals sites that may have been put up with less of a business plan to thrive for the long term are the first ones who fell off. What remains are the lesser number of sites that are able to scale and improve their service for its online audience. These are the sites that may have the better chances of succeeding in the industry.

There are also other daily deals sites which may still be existing but may already be looking into other possible means of revenue. Aside from offering daily deals, other sites may now be looking into other possible revenue sources such as selling their own products online. In this case, some of these sites are now contemplating getting into the e-commerce realm.

And it is for this reason why some experts believe that daily deals sites may no longer be the accurate moniker for them to go with. As some of the sites venture into selling their own products such as watches or travel packages, it might be something that even daily deals sites like Groupon may eventually be considering. With having a somewhat established customer base to work with, it may be easier to introduce something such as an e-commerce component in the site. In this case it truly might no longer be just a daily deals site anymore, but an e-commerce one at that.


Tags: , , , ,