But the social network’s advertising revenue grew 18.4% during the quarter.
Not to miss out on the hot trend of daily-deal e-commerce, Amazon.com Inc. has launched MyHabit as a women’s fashion apparel site and PC Mall has come out with OnSale.com for consumer electronics.
Seeing opportunity in catering to bargain-hunting consumers through daily-deal sites, Amazon.com Inc. and PC Mall Inc. last month debuted e-commerce sites offering time-restricted discounts.
Amazon launched MyHabit, a fashion site that sells upmarket women's, men's and children's clothing and accessories at up to 60% off regular prices, the e-retailer says. Sales start at noon daily and run for about three days. Amazon also offers free four-day shipping and free returns on MyHabit purchases.
MyHabit features 360-degree videos of the clothing on live models so shoppers can better understand how the clothes appear in real life. Product pages feature detailed descriptions, images and a zoom feature.
"MyHabit gives fashion customers an elegant and easy-to-use online destination for private-sale shopping," says Maria Renz, president of MyHabit. "MyHabit sets a new standard in service, convenience and product presentation."
Amazon.com is following the lead of such private-sale fashion retailers as Gilt Groupe Inc., GSI Commerce Inc.'s Rue La La and ideeli Inc., all of which announced plans to move beyond fashion flash sales last month. Gilt Groupe launched GiltTaste.com, a gourmet food and cooking e-retail site; Rue La La launched daily deals for services in the New York market; and ideeli announced a partnership with Voyage PrivŽ, an online provider of limited-time travel deals, which will expand its travel sale offerings to more than 100 per month.
Meanwhile, computer and electronics retailer PC Mall is transforming OnSale.com, the former storefront for its discount shopping site, into a daily-deal site that offers consumers discounts on products and services in their local areas. OnSale.com also will include discount offers for consumer electronics when it launches during the second quarter of 2011.
Similar to Groupon, shoppers will be able to purchase discounted offers at OnSale.com and redeem the voucher, or OnSale Coupon as PC Mall calls it, at local merchants. Consumers can sign up at OnSale.com to receive offers through e-mail, Facebook and Twitter. Shoppers will also be able send the deals to friends and accumulate rewards points when friends make purchases.
"We are very excited about OnSale's prospects as it expands into this emerging market which, fueled by the social web, has quickly evolved into an important growth channel for merchants," says Frank Khulusi, CEO at PC Mall. "Unlike other competitors in this space, OnSale has been an online e-commerce merchant for over 10 years. As a result, OnSale can offer consumers the opportunity to leverage rewards programs that provide them significant discounts on computer and consumer electronics products, not just discounts on other third-party coupons."