Google Offers in Testing Phase – Can They Overcome Groupon?

by Rodney Southern January 24th, 2011 

Google Offers

The idea behind Google Offers is that a small business offers a deal to customers, assuming that a certain number of people buy in. Google Offers markets these deals to online customers via a daily email or other advertising avenues. Customers buy in, and once a certain number of purchases are made, the deal is completed.

Google Offers delivers the goods and the profits, holding on to a certain amount of the revenue to ensure refunds are not requested and can be paid for. Once sixty days has elapsed, all parties get their money and the deal is complete.

The end result is the customer is happy with a great bargain, the business is happy with increased revenue and customer traffic, and Google is happy with more money in the coffer. It is not hard to understand why Google would be interested in such an idea. Their infrastructure is perfectly set up for such a business idea.

Google Offers will reportedly be powered by Google Checkout, and will also be tied in with all the various social bookmarking and Google options.

Far From Novel

google-offers-monopoly

The idea is far from novel.

Groupon has been doing it and doing it well and so have others, like LivingSocial. Google actually attempted to buy Groupon out a few months ago, but their six billion dollar offer was not enough and Google now is in the test market for their very own version.

So what does this mean for Groupon? Groupon is going to struggle in the wake of this new offering from Google. Because of Google's reach and power, it is hard to understand how Groupon could possibly escape from this news unscathed. Still, Groupon is no small fish themselves, at least in this world of business. They are also in competition with LivingSocial and others that offer this area of e-commerce.

While this is in the testing phase only, Google Offers almost could dominate the market on this if they do it right.

A superior reach and advertising avenues could make them dominant in many ways. Also, they would have a much easier time getting participants in the business community due to brand recognition and trust. That remains to be seen.

Rodney Southern

Rodney Southern is an aspiring book author and freelance article writer. Rodney works for Romow web directory to edit directory listings as well as contribute articles.

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5 Responses to “Google Offers in Testing Phase – Can They Overcome Groupon?”

  1. Given Google's total fail at Buzz and Wave, only time will tell to see if Google can succeed here. First, they came up with HotPot in rebellion when Yelp turned them down in that market. HotPot has a long way to go, is completely useless from a billion points of perspective, and will only succeed if Google uses an unfair tactic to get enough people to use it.

    And it's this type of offer that portends a day down the road when Google is forced to split up due to having too many hands in too many tills.

    • Ruud Hein says:

      I've considered that it might be a "release & press release" strategy. Launching new services comes at virtually no cost to them, so get a "do it in your own time" bunch of code, add a name, slap on one of those standard logo's and hey presto, another day in the spotlights and, maybe, possibly, some VC's discouraged from investing here or there.

  2. Peter says:

    To me, Google Offers is the least Googley service I've ever seen. Traditionally Google has been an algorithm purist, and they have been excelling at productizing their algorithm. They are not good at dealing with people/merchants, making their hands dirty. See how NexusOne web store went out of business. Time will tell if Google learned a lesson.

  3. I don't think Google will have a success! We all know that a brand doesn't have to expand in such a way. Starbucks is a clear example of wrong expanding if you could catch my point :)
    .-= Tihomir Petrov recently posted: Как влияе indoor рекламата на клиентите в мола =-.

  4. David Bain says:

    Interesting, but I agree with Alan – they might have a few too many hands in too many pies at the moment. The last things that Google needs is another Buzz or Wave.
    .-= David Bain recently posted: How to Run Successful Solo Ezine Advertising Campaigns =-.