Daily Deal Aggregators – what is your business model?

Deal Aggregators – what is your business model?
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Post the series of daily deal sites that have come up in India (or across the world) – there are many deal aggregation services that have been launched. There are on going debates – is there a business model for deal aggregation services?
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While daily deals and coupon services are growing in India and else where – many users/customers of daily deals services as well as critiques of this business models have complained that people usually end up buying things that they do not want or would not have purchased otherwise. Which is little illogical because you buy it for the deep discount – and you buy it by your choice.
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My example – I am a regular eCommerce transactor – at least 10-12 product/books (non-travel) transactions per year. However I am yet to buy a deal/coupon as most services are offering deals that are not relevant to me or not close to my location. As a consumer, here is my take – I will not be interested in a coupon that gives me Rs 200 off at a restaurant in Andheri (Mumbai). The economics does not work for me, total travel time of 4 hours, commuting cost between Rs. 100 to 500 depending on mode of travel and accessibility of the service provider.
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There are two primary needs of consumers in this space that are not yet solved completely:
– Relevance of the Deals
– Location of the Deal
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While this is the problem that most daily deals and coupon services are themselves trying to address – the aggregators can do a better job at this for following reasons:
  • Most deal sites are limited to anywhere between 1 to 5 deals at any given time. That limits their reach to about 5-10 suburbs in a city like Mumbai (Mumbai + Navi Mumbai + Thane) or Delhi (Delhi + Gurgaon + Noida)
  • A deal aggregator can get such 5 deals from 5 different websites – and will have 25 deals to showcase and in most cases the span of reach will be wider – about 20-30 suburbs (which covers 40-50% of Mumbai)
The above statement is very logical, however deal aggregators now have to think beyond just aggregation and focus on distribution of such deals to relevant audience – relevancy by deals and location. At least in India, it may not be the daily deal websites that can take this business hyper-local but definitely the deal aggregators can if they wish to.
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If deal websites are focusing on – Deals in Mumbai; aggregators should focus on Deals in Andheri, Bandra, Chembur, Colaba, Ghatkopar and more!
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My two cents – Business model for Deal Aggregators should not be aggregation of deals. That is a simple job and that is minimum expected out of them. Your business model should be Distribution – distribution of deals, thats where they start testing their capabilities and adding value to the ecosystem!
  • http://buzzr.in/dailydeals Kunal

    Very insightful post Pravin. Increased relevancy (both categorywise and locationwise) is indeed a benefit that deal aggregators can provide to consumers and this should be taken advantage of.

  • Arjun Ram

    Glad to see such an in depth analysis! We at Taazza do just that with TaazzaGo our local service which includes deals! We have found that the conversion rates are higher! Consumer gets the deals closest to them on the go! We carry deals from major providers and our app on android is rated pretty high!

    We will be on other platforms soon! Pls do check it out! Would love to vet your thoughts on the same!

    Best

  • http://www.pravstalk.com pj

    Thanks Kunal and Arjun. My best wishes for your products

  • Rahul Arora

    We are a new player in deal aggregation area. It becomes difficult to navigate the ever-increasing daily deal websites. Our job is to provide a one-stop place for users to check all deals at one place. The link to our website is http://www.dealites.com We have tie-ups with 30 websites.

    Apart from users, we also provide an API for businesses interested to show the aggregated deals on their app/portal.

  • Satish

    There is a deal aggregation service by http://www.UPto75.com. It has largest number of non-daily deals.

  • http://www.coupongaadi.com Rakn

    “As a consumer, here is my take – I will not be interested in a coupon that gives me Rs 200 off at a restaurant in Andheri (Mumbai)” – You hit the nail on the head rightly. Thats the reason why deal aggregators may have a better chance than daily deal sites.

  • Vishal Haria

    Information overload is killing customer interest in the area, especially for the newbie customers in deal/ecommerce space

    Yes, relevance, localization (hyperlocal) and discovery is very important, and so is curation.

    An aggregator needs to curate the information to make it discoverable in various unique ways (e.g. adding categories when source does not categorize deals, adding hyperlocal information, standardizing view across deals from all sources so that visitor can infer in a glance)

  • http://www.27coupons.com Abhik Mohanty

    The aggregators have an easier job to do as well, instead of focusing on the sales team (which gather deals) and logistics (delivery model of deals) the aggregators can solely focus of good quality deals and submit the same. The idea is social curation of deals and discounts leading to a better presentation of information in a much more usable format for anyone.

  • Rakshanda Sharma
    • http://www.beingpractical.com Pravin J

      “Delete”

  • Neeraj

    Check out the MasalaDeal, a deal aggregator in India : http://www.masaladeal.com/
    Any kind of feedback appreciated

    • http://www.beingpractical.com/ Pravin J

      What is the differentiation here?

      • Neeraj

        Its not location based. The deals are chosen in a way that it can be useful to anyone in India. And most importantly brief statement on deal and how to reedem make it useful for visiors. We are working on adding more features.

        Thanks,
        Neeraj

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  • ritesh

    this time online shopping in-cress every day & this type of information is very graceful to every online buyer know about deals and coupons. so kip it up. thanks … actually i’m online buyer , or i’m great full to you this