Tuesday, March 29, 2011

What is Groupon and are they legitimate?


Groupon is a deal-a-day website that features discounts from various websites at one location: groupon.com. After a few simple steps you can be signed up for the region in which you live. You will receive deals at local restaurants, spas, fitness centers or other shops-- an article on Wall Street Journal today mentioned ten things Groupon wont tell you.

1. 50% off, well not really. They get you on the undisclosed tax and shipping & handling fee (which is higher than ordering most internet products).

2. Good luck cashing in. A lot of deals are often oversold and not able to be redeemed. There have been many cases where people were not able to spend a day at the spa because they waited too long to use their coupon because too many people already did.

3. We're above the law. There may be undisclosed expiration dates sooner than you would think so that is imperative to identify.

4. We'll be out of business by Christmas. Many sites don't survive and these deal-a-day sites are a new craze. The technology behind deal sites makes them easy to start, but sustaining them requires a steady stream of interested business and consumers, says Opus Research's Sterling.

5. You won't use this coupon. The silver lining for consumers" there's a growing secondary market on sites like Lifesta, CoupRecoup and DealsGoRound, where sellers unload their unwanted deals and buyers can grab them, often at a steeper discount than the deal site originally offered.

...more to come on this article

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