October 25, 2010, 1:53 PM

eBay offers Groupon daily deals

Consumers earn eBay Bucks for Groupon purchases made through the online marketplace.

Allison Enright


Lead Photo

EBay Inc. today started to promote localized daily offers in a co-marketing deal with group-buying coupon site Groupon Inc. EBay shoppers who have signed up for the company’s loyalty program receive 5% of the purchase price back as eBay Bucks, which members can use toward purchases on eBay.

Groupon sends daily discount offers via e-mail to its 14 million U.S. members. EBay says the new Groupon program identifies an eBay visitor’s location and presents the Groupon offer nearest that location. Groupon operates in more than 100 U.S. markets. “Shoppers can connect with the best local businesses in their area with the bonus of earning eBay Bucks,” says Sean Smyth, vice president of business development at Groupon.

EBay says the eBay Bucks offer provides an incentive that will drive traffic to the online marketplace. “The rewards program provides customers with one more reason to check eBay first,” says Kurt Aspen, senior director of loyalty and consumer marketing at eBay.

EBay visitors who click on an advertised Groupon offer connect to Groupon’s eBay store. They can select “buy now,” which connects them to Groupon to complete the transaction. A second choice enables a shopper to “sign in” to earn eBay Bucks. That consumer then is sent to Groupon’s site to complete the coupon purchase. Groupon declines to disclose the financial terms of the arrangement. When working with small retailers, Groupon typically takes 50% of the purchase price of the Groupon offer.

Although Groupon’s offers usually focus on local services, the first Groupon coupon featured on eBay’s home page was redeemable offline at The Body Shop, a retailer of bath and body products with locations nationwide. Groupon says that although today’s offer came from a national retailer, in the future eBay shoppers will get whatever local deal is closest to them.

Groupon ran its first national offer in August for The Gap, and has previously said that it is pursuing more national deals.


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