Why did people stop using Groupon?
Groupon is a great way for businesses to get noticed, but it also comes with some drawbacks. When businesses list deals on Groupon, they have to offer steep discounts, and then Groupon takes a big cut of the revenue. That means less money going back into improving our lanes, food, arcade, and overall experience. But with such steep markdowns, it’s natural to question whether the savings are safe or just too good to be true. Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts.The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.Groupon is still legitimate, but the quality of merchants on the platform has declined, according to many users. Some deals are misleading or poorly fulfilled. Always read fine print, check vendor reviews, and contact the merchant directly before buying.Explore other competing options and alternatives. Other important factors to consider when researching alternatives to Groupon include price and customer service. The best overall Groupon alternative is Vagaro. Other similar apps like Groupon are Travelzoo, dealsaver, Localflavor, and Gilt.The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.
Why is Groupon not popular anymore?
The customers they won with damagingly low deals on Groupon did not become loyal customers but moved on to exploit the next amazing deal, leaving small businesses with only the costs. As a result, they pulled back from their deals, and Groupon had to expensively acquire new businesses to keep the deals site full. Research has shown that groupon discounts are typically from 50-80% off, while livingsocial rarely offers discounts above 50%. Groupon also updates their website more often and offers more deals per day. For Merchants: Living social has better customer service.But with such steep markdowns, it’s natural to question whether the savings are safe or just too good to be true. Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts.Google offered to buy Groupon, then a two-year-old local e-commerce startup, for $5. But the deal fell through for three main reasons, according to writer Frank Sennett, the author of a forthcoming book on the company. Google offered a $800 million breakup fee.Daily-deal platforms like Groupon and Woot still attract millions of bargain-hunting shoppers. In fact, Groupon alone saw around 18 million active customers in 2023—proof that the appetite for short-term discounts hasn’t gone anywhere.
Is there a better site than Groupon?
Explore other competing options and alternatives. Other important factors to consider when researching alternatives to Groupon include price and customer service. The best overall Groupon alternative is Vagaro. Other similar apps like Groupon are Travelzoo, dealsaver, Localflavor, and Gilt. The deals offered daily through Groupon start at 50 percent off and can go as high as 90 percent cheaper than the normal price. Groupon can offer such steep discounts because it guarantees business owners a minimum return on their investment and the possibility of becoming an overnight sensation.
What went wrong with Groupon?
Why the downfall? Critics have long called Groupon’s model unsustainable. Customers get subpar services from swamped businesses, while businesses get a bad deal in the long term. One analysis found only ~20% of Groupon buyers returned for full-price purchases. Problems with low business efficiency began to surface, translating into weak profitability. While revenues initially grew significantly, so did costs, and operating margins remained low as a result. To attract new customers, Groupon had to offer steep discounts. But these did not bring merchants long-term customers.In recent years, Groupon has shifted greater focus toward higher-margin local experiences and services, phasing out lower-margin goods. As of 2025, Groupon’s Local segment in North America was the primary growth driver.
What are the disadvantages of Groupon?
Groupon Deteriorates The Value Of Your Business If company X can offer a 50% discount and still make a good profit, then they must be jacking up their prices. Once a customer receives a large discount, it trains them to wait for later coupons and deteriorates the value of your products and services. But with such steep markdowns, it’s natural to question whether the savings are safe or just too good to be true. Here’s the short answer: Groupon is a legitimate marketplace that connects you with verified businesses offering real discounts.