groupon refund (1)

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How does Groupon make money?
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Key Points of the presentation

• About Groupon
• How does Groupon make money?
• Commission revenue model works like this-
• Conclusion

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About Groupon

• Groupon was started by Andrew Mason in 2008 and
  has quickly become a hub among bargain hunters.
  It connects customers with local merchants by
  selling vouchers and coupons for discounts. In
  this way, Groupon generates its profit by being
  the middleman of business. In a few cases,
  customers can purchase goods and services at more
  than a 50 per cent discount rate. These discounts
  and offers are run on Groupon official websites
  and mobile applications. 
• The offers are organized into 3 main categories-

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• 1) Goods(Product)- In this, revenue is generated
  through transactions in which Groupon sells
  inventory directly to customers and third-party
  revenues.
• 2) Travel(Service)- Groupon offers discounts on
  travel at both discounted and market rates.
• 3) Local (Service)- In this, revenues are
  generated through local and national merchants.
• Cancel Groupon guidance.

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How does Groupon make money?

• Groupon makes money marketing and promoting
  businesses on its official website. It connects
  the customers to the merchants and charges a
  commission on every customer referred to the
  business. 
• In other words, Groupon generates its revenue by
  selling its deals offerings to consumers which
  are based on 2 channels-
• Cost of direct revenue
• Third-party and other.

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• Let's talk about them in detail-
• Cost of Direct Revenue
• Through its Goods category, the company generates
  its direct revenue from the merchandise of sale
  inventory. In direct revenue includes the cost of
  inventory, shipping, fulfilment costs, and
  inventory markdowns.
• Third-Party and Other Revenue
• In this, revenue is recorded on a net basis and
  is presented within third-party revenue. In this,
  the cost of revenue included estimated refunds.
  When customers make their purchases using digital
  coupons then it allows the third party to earn
  commissions. 

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Commission revenue model works like this-

• Suppose a merchant "ABC" runs a campaign on
  Groupon to offer 100 service at 50 off and a
  sign of a 50-50 per cent revenue sharing contract
  with Groupon. That means, for every deal that is
  sold on Groupon, ABC and Groupon both earn 25
  each. But this isn't that simple as it seems
  because Groupon only shares the revenue of the
  deals which are redeemed at the store of the
  merchant and not the total amount of the deal
  sold. That means, out of 100 deals sold by
  Groupon, only 70 can be redeemed. The revenue
  sharing percentage also depends on the
  negotiations and marketing tools include
  advertisement, product promotions, deal of the
  listings, etc.

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Conclusion

• So we have shared all the complete information
  about Groupon and how it makes money. Groupon
  promotes the brand on its websites and helps
  small businesses to sell their products. If you
  want to get your refund then you should read
  the Groupon refund policy to get the complete
  information. Initiate your return easily. 

Call Us 1-800-215-4017
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