How does Groupon work and is it legitimate?

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Coupons and coupons have been around as long as modern shipping and retail stores. Just because people have turned to online shopping doesn’t mean they’ll stop looking for the next best deal to save money.

Groupon is a service that promises coupons and coupons. But is Groupon legitimate? Does it actually help you save money on your online shopping, or is it just a waste of time with the illusion of saving money?

How does Groupon work?

Groupon is classified as an e-commerce site. But instead of selling products directly to consumers, it sells coupons to users that give them access to discounts, limited offers, and one-stop shopping deals for various e-commerce websites and in-person services. .

In the buying process, Groupon is the intermediary or broker. Before selling you a coupon, Groupon first enters into an agreement with the e-commerce site or brand selling the product or service.

So far, Groupon may sound too good to be true. How do they make money when there is less money paid to start?

For every purchase made using any of Groupon’s discount codes or specials, they receive a percentage of the purchase as a commission. After all, they played a role in marketing the brand and helped it sell a product or service.

In most cases, Groupon takes between 50 percent and 90 percent (on rare occasions) of the sales revenue generated by buyers using their coupons.

The commission Groupon takes is not immediate or static. Part of the deal with their suppliers includes a minimum number of sales or revenue generated before Groupon can step in and take its share.

This means that Groupon has a quota to meet. If they don’t generate enough buyers through their website, they won’t get paid for all the promotional work they’ve done for the supplier.

What about Groupon Cashback?

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In addition to the old-fashioned coupons, Groupon also offers cashback offers through its Groupon + program. You must first have a qualifying credit or debit card linked to your Groupon account. After that, it’s as easy as going through Groupon’s list of cashback offers and claiming the one you like.

At first, it seems like you’ve paid a high price for the product or service. But you will get a refund on your credit or debit card statement. This model allows you to save money shopping without the hassle or risk of buying coupons and redeeming them in store or online.

Groupon makes money with cashback more or less the same way as with coupons; by making agreements with sellers. But unlike traditional cashback offers offered by cards and banks which often range between one and five percent, Groupon’s cashback offers range from 15 to 30 percent, so they look like regular discounts.

Is Groupon legitimate?

If by legitimate you mean that you won’t be wasting your money or time as a buyer or seller, then yes, Groupon is a legitimate business. They have been around since 2008 and have branched out to provide their services in more than 15 countries around the world.

As a company, Groupon has grown steadily over the past decade. And so far, they have received few or no complaints from users and business partners about shady business practices, scams, or unethical practices.

Groupon expiration dates explained

Hands holding a big red clock

Malvestida Magazine / Unsplash

Since Groupon’s agreements with sellers and service providers have a deadline, so do the coupons they provide. Naturally, you can’t expect to use a coupon you got over a year ago.

To encourage people to actually use their coupons, Groupon sets two expiration dates for each discount code available for purchase on its website.

The first deadline is the length of time the offer is live on the Groupon website. This usually lasts a few days, and most offers on Groupon have a countdown timer to indicate how long the offer is available for purchase before it ends.

The second delay activates once you have purchased the coupon. This typically lasts from a few days to six months, depending on the provider and the longevity of the offering. You can’t expect to redeem a special summer package months after winter.

If you don’t redeem your code before the second expiration date, the code turns into unnecessary text or barcode, an expired code. Of course, by then, it’s unlikely that Groupon or the seller will accept the coupon and give you the discount you bought, so you better act quickly and not leave your Groupon coupons left in a drawer. cluttered.

Who is Groupon for?

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When Groupon started in 2008, they mainly tried to reach users through their website and newsletter. This made their main demographics into adults and young adults who regularly used the internet and checked their email inboxes at the time.

Today, Groupon attracts people from all over the world of different age groups. But it’s worth noting that, according to a recent survey, the majority of Groupon users are women, although men still do a decent share of coupon purchases.

In addition, Groupon’s business model has evolved alongside FinTech and online banking. The majority of Groupon users reported using online banking and digital money, which is normal. Plus, it’s easier to buy Groupon coupons on the go when your wallet is connected to your smartphone or computer.

It’s not just local businesses. Groupon is gaining popularity among online product buyers. The majority of regular and occasional Groupon users said they enjoyed using it when shopping on Amazon, Target, and Walmart.

Is Groupon Worth It?

If you shop a lot online or like to try out products and services from local businesses, Groupon can lessen the effects on your wallet. Groupon is the place to trade a few minutes of your time for a 50% discount.

Still not sure? Try it out with smaller purchases and only treat yourself to products and services you already know you’ll like.


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