Home  › Social › Social Commerce
livingsocial-amazon

Amazon's Daily Deal Hits 600K Sold, Crushing Gap's 'Groupon'

  |  January 19, 2011   |  Comments

E-retail giant's $20-for-$10 LivingSocial voucher has gone viral, establishing a blistering sales pace during the campaign's initial hours.

livingsocial-amazonAmazon just sold its 620,000th LivingSocial voucher, and there are still 18 hours left in the $20-for-$10 campaign. As of 2 p.m. Eastern Standard Time, that's $6 million in sales for the offer, which is on pace to crush Gap's $11 million Groupon effort that included 440,000 vouchers moved on Aug. 19.

Amazon's offer is limited to one per buyer and can be used for any product category on the site other than gift cards. There's a strong viral aspect in play: When viewers buy the voucher, they see webpage copy that encourages them to e-mail, tweet, or Facebook post the offer to their friends. If the person gets three friends to buy the Amazon offer, his credit card will be reimbursed for the $10 purchase. A unique URL that the person places in his message to friends links the referrals back to him.

Without question, Amazon's enormous footprint with consumers is the biggest reason the offer has gone viral. And with the e-retail giant's name on this campaign, it's an unusually good opportunity for LivingSocial to grow its e-mail list by the hundreds of thousands in a single day. Indeed, voucher buyers opt in for future LivingSocial messages.

It seems reasonable to wonder if Amazon deals on LivingSocial will become a regular e-commerce affair. After all, the Seattle, WA-based retail brand invested $175 million in the group-buying platform in early December.

If Amazon sees an average order size well above $20 for the effort, the two brands will likely work together again.

ClickZ Live Toronto On the heels of a fantastic event in New York City, ClickZ Live is taking the fun and learning to Toronto, June 23-25. With over 15 years' experience delivering industry-leading events, ClickZ Live offers an action-packed, educationally-focused agenda covering all aspects of digital marketing. Register today!

ABOUT THE AUTHOR

Christopher Heine

Christopher Heine was a senior writer for ClickZ through June 2012. He covered social media, sports/entertainment marketing, retail, and more. Heine's work has also appeared via Mashable, Brandweek, DM News, MarketingSherpa, and other tech- and ad-centric publications. USA Today, Bloomberg Radio, and The Los Angeles Times have cited him as an expert journalist.

COMMENTSCommenting policy

comments powered by Disqus

Get ClickZ Social newsletters delivered right to your inbox. Subscribe today!

COMMENTS

UPCOMING EVENTS

Featured White Papers

Gartner Magic Quadrant for Digital Commerce

Gartner Magic Quadrant for Digital Commerce
This Magic Quadrant examines leading digital commerce platforms that enable organizations to build digital commerce sites. These commerce platforms facilitate purchasing transactions over the Web, and support the creation and continuing development of an online relationship with a consumer.

Paid Search in the Mobile Era

Paid Search in the Mobile Era
Google reports that paid search ads are currently driving 40+ million calls per month. Cost per click is increasing, paid search budgets are growing, and mobile continues to dominate. It's time to revamp old search strategies, reimagine stale best practices, and add new layers data to your analytics.

Resources

Jobs

    • SEO Specialist
      SEO Specialist (HeBS Digital) - NEW YORK                             ...
    • GREAT Campaign Project Coordinator
      GREAT Campaign Project Coordinator (British Consulate-General, New York) - New YorkThe GREAT Britain Campaign is seeking an energetic and creative...
    • Paid Search Senior Account Manager
      Paid Search Senior Account Manager (Hanapin Marketing) - BloomingtonHanapin Marketing is hiring a strategic Paid Search Senior Account Manager...