Disclosure: This post may contain affiliate links, meaning we get a commission if you decide to make a purchase through our links, at no cost to you. Please read our disclosure for more info.
Last Updated on January 20, 2024 by Work In My Pajamas
With people trying to save money by bargain shopping, daily deal websites have become extremely popular. What began with one or two websites selling one coupon per day has turned into a huge industry with hundreds of competitors. You may need to sell your stock at a discount with these online stores, but the volume and exposure to new customers can make it worthwhile.
In This Post:
What’s the Deal?
Daily deal websites offer steep discounts on events, restaurants, and products for a short period of time. For the most part, they do not charge the retailer they are partnering with, but they do take a steep percentage of the cost of the item. Here is an example of how the deal works: Deal Website an offers a hair iron to consumers for one day at half the retail price. Instead of selling the hair iron for $150 the deal website offers it for $75. The merchant and the daily deal website then split the $75 from purchasers. Thus, the hair iron manufacturer receives $37.50, and Deal Website A receives $37.50. The incentive for the hair iron manufacturer is bringing in a group of consumers who would have not bought the iron in the first place but may become repeat customers of their brand.
Where Can I Make a Deal?
There are hundreds of daily deal websites. They each take a different cut of the sale depending on how much traffic and volume they expect. A website with greater reach may ask for as much as 75 percent. A newer website may ask for 40 percent of the sale and leave you with 60 percent. If you are concerned about selling too much stock in one sale, you also have the option to sell a limited number of orders. This can actually be a strong sales tactic. If you sell out you can expect calls from people who missed the deal but still want your shirts. Here are a few of the biggest daily deal sites:
- Woot! – This is daily deal site focuses on one product a day.
- Groupon – Along with restaurants and experiences, this site has a goods section, and you can offer your shirts for a few days. You can focus nationally or locally depending on your preference.
- LivingSocial – This site is extremely similar to Groupon, but you may receive a more favorable percentage since it is not the market leader
Deciding if a daily deal website is right for you will depend on how much inventory you have, and how low the price you are willing to sell your shirts will be. Many brands have made a name for themselves with daily deal websites. If you come through for these discount seeking customers, you may find that you have done a year’s worth of marketing in the span of a few hours. The bottom line is exposure to thousands of new customers, not having to pay for marketing, and potential for repeat business at full price. These factors can make the discount worth it.
What Does Daily Deal Mean?
A daily deal refers to a limited-time offer or promotion that provides customers with significant discounts or special deals on products or services. These deals are typically available for purchase or redemption within a specific timeframe, usually lasting for a day or a few days. Daily deal platforms and websites, such as Groupon or LivingSocial, are popular for featuring various discounted offers from local businesses or online retailers.
Why Are Deal Sites Important?
Deal sites offer benefits to both consumers and businesses by providing opportunities for savings, exposure, customer acquisition, and inventory management. They contribute to the growth of e-commerce and serve as a valuable platform for businesses to connect with their target audience.
How Do I Start a Daily Deal Website?
Starting a daily deal website requires careful planning and execution. Here are some steps to get you started:
- Identify your target market: Determine the audience you want to cater to and the type of deals you want to offer. This could be based on location, interests, or specific industries.
- Research the competition: Study existing daily deal websites to understand their business models, deal offerings, pricing strategies, and customer acquisition techniques. Identify gaps or areas where you can differentiate your website.
- Build a website: Set up a user-friendly and secure website that allows businesses to submit deals and users to purchase them. Consider hiring a web developer or using a daily deal platform that offers customizable solutions.
- Acquire merchants: Reach out to local businesses or online retailers and convince them to offer exclusive deals on your platform. Offer attractive terms to encourage their participation.
- Develop a marketing strategy: Create a comprehensive marketing plan to attract both merchants and customers to your daily deal website. Utilize online marketing channels, such as social media, email marketing, and search engine optimization, to drive traffic and increase awareness.
- Set up a payment system: Implement a secure payment gateway to handle transactions between customers and merchants. Ensure that the system supports multiple payment methods and provides a seamless checkout experience.
- Launch and promote your website: Once everything is in place, launch your daily deal website and promote it extensively. Use targeted advertising, content marketing, and partnerships to generate buzz and attract an initial user base.
- Provide excellent customer support: Offer responsive customer support to address any inquiries, issues, or concerns from both merchants and customers. Maintain strong relationships with your partners to foster trust and long-term cooperation.
Remember that starting a successful daily deal website requires consistent effort, continuous improvement, and adapting to market trends. Monitor performance metrics, gather feedback, and make adjustments to optimize the user experience and maximize revenue potential.
