Groupon's Business Model

379 Words2 Pages
Groupon is a successful online service provider, aimed at customers searching for products with an attractive discount online. Groupon’s business model is mainly based around charging a markup for marketing, advertising and promoting a seller’s product online. Groupon currently enjoys a merchant satisfaction rating of 79%, which is higher than the average B2B merchant satisfaction score. Groupon’s business model is often regarded as not being sustainable due to Groupon not providing its merchants with a reasonable profit on their products. Following the acquisition of Savored and subsequent launch of “Groupon Now”, sustainability might improve. Initially Groupon placed a restriction on the period during which a service can be utilized. Service