Google’s attempts to acquire Groupon fell apart when the daily deal giant turned down a $6 billion buyout offer. Four months later, Google’s own daily deal version is ready to roll.
Google Offers is the search engine’s long-awaited foray into the daily deals business, and shoppers in Portland, Oregon, will have the first chance to try out what is on offer. The sign-up process has begun and shoppers have been promised reductions of at least 50% every day.
The City of Roses was chosen as the test city for its unique selection of local retailers and restaurants, and its lively community spirit. New York City and the San Francisco Bay Area are next on the list.
Daily Alerts on Best Deals
Consumers in all three areas can sign up to Google Offers to receive notifications of the day’s best deals, though a start date for the emailing process has not yet been indicated.
Google says on the daily deals website that it is “working hard to get Google Offers up and running in Portland,” telling shoppers they will soon start receiving emails with offers from local businesses and restaurants.
Analysts are predicting the daily deals business to generate up to $2.7 billion in 2011. Following the failed buyout of Groupon, Google has made its intentions clear: daily deals will be the next conquest in its ever-expanding assault on the e-commerce industry.
Key Players - Leading Online Deal Sites
- For the moment Google Offers’ main competitor is Groupon; though in late April, Facebook launched “Deals on Facebook” and a Yahoo executive launched the personalized deal site called ChoozOn; Yahoo7 owns Spreets, a coupon and deal savings site in Australia and New Zealand.
Key Statistics - E-commerce Market (source: JP Morgan)
- Global e-commerce sales are expected to rise at an annual rate of over 19% to reach $963 billion in 2013.
- E-commerce growth in the US will increase by more than 12% annually to over $235 in 2013.
- The number of online shoppers in the US will rise to nearly 190 million by 2013, an increase of 3.6% annually.