Daily deal websites might be larger than you think. Around 31% of all online transactions in Australia in August 2014 were related to deal / coupon websites. To put this figure into perspective, when comparing the previous month of August in 2013, the Australian deals industry witnessed 113% growth year on year. Ibis World a large industry market research company has analysed the market over the past 5 years and has witnessed an annual growth, of 72.6% growth rate.
The growth of this industry is now singing to the tune of $676.2 million dollars, with most prominent users of these services being from Melbourne and Sydney. So I decided to look at the size of this industry in more detail to find out how useful these websites are to their consumers, and most importantly, how much value they add to the consumer experience? To find out how other people collectively save millions on the things you're potentially paying more for, continue reading.
Over the past five years there has been a big surge in the use of deal websites that provide discounts and coupons, on everyday products. Websites have popped up across the globe, to utilise the affiliate schemes that are offered by both small and large corporations alike. Their aim is to build up a subscriber base to promote limited time deals and special offers, on a daily basis. Building up a follower base, means consumers benefit from constant notifications about specific deals they are interested in reading about, and the website continues to generate a revenue from sending paying customers in the direction of the advertising companies.
Like the majority of websites, these ‘middlemen’ act as a shop windows, but instead of displaying products, they display deals that customers would otherwise be unaware that they can offset against their purchases. In Australia, Melbourne has the highest rate of shoppers incorporating these deals into their shopping regime, tallying up a total of 2% of all uses during the month of August 2014. Sydney followed in close second with 1% of total transactions, while Surry Hills came in third with 0.39%.
The major push in this market was generated when the international hit Groupon stormed the market. However, despite falling share prices in recent years for the daily deal website, the market trend continues to defy economists' projections. To the astonishment of some industry leaders, the deals marketplace isn’t just maintaining its size, but actually growing.
One example which demonstrates how popular daily deals sites are, can be seen in the following information provided by payment gateway company Eway. Their statistics on the transactions within the month of August 2014 in Australia illustrate what kind of volumes these daily deals sites are generating versus other categories of websites.
Number of Transactions
|Daily Deal Websites||
|TV Shopping channels||
|Computer network / information||
|Camera / Photographic supplier||
|Men’s & women’s clothing||
For easier visualisation of the above figures, here they are in a Pie chart:
The daily deals site marketplace is heavily concentrated, with the top three players dominating 80% of the industry. This heavy dominance is related to the relatively small industry size, along with the early entrants and companies with large financial backing that pushed their way to the top. However, the large companies lack the ability to demonstrate how they are adding value to your daily lives. Which is where smaller competitors really outshine their rivals. Large companies will pump their websites full of money saving deals and coupons. But so will smaller companies, yet the smaller companies will also show you how to get more value for that money spent.
Take Buckscoop, for instance. Where we differ primarily from the likes of well known daily deals sites, like Groupon or Catchoftheday, is that we don't source or sell any products ourselves. How we add value though, is by showing online shoppers where they'll find the cheapest or best value for money items online. This is done by wading through the mountainous barrage of daily sales/promotions that retailers throw at customers. Then, using our keen insight and knowledge of the Australian market, we are able to cherry pick only the best deals both saving online shoppers time and hopefully a lot of money too.
The problem with many deal or bargain oriented websites is that they still tend to measure the discount of a product/service against the RRP (Recommended Retail Price). For Buckscoop, this represents nothing more than a fictitious value which only exists for a very short period of time after a product enters the market. The reality is though that very shortly after this, price competition sets in amongst retailers and the cost of the product starts dropping. Thus, any demonstration of a deal on Buckscoop that refers to why its price is competitive, always makes reference to "market prices" (or what that product actually costs across different retailers at that particular point in time).
Another value-add that Buckscoop provides, is teaching its followers how to become deal hunters in their own right by learning where to look for bargains and how to achieve even bigger discounts once discovered. This is done by providing tips and advice to readers which can include anything from how to avoid paying for shipping fees or how to spot opportunities to stack multiple offers on top of each other for larger savings, to which retailers give you free coupons when simply singing up to their newsletter.
Our authority within the deal-hunting niche also means that retailers will often reach out to us offering incentives such as exclusive discounts or coupon codes for Buckscoop followers. So it's a good idea to visit Buckscoop regularly if you want to keep abreast of all these sorts of special offers and additional savings that can be had.
Ultimately, Buckscoop serves as a more objective voice to listen to in all the noise created by everyday marketing and sales hype from retailers online. We don't just say it's a good, we'll also clearly explain and demonstrate why so that you can be certain of getting the best deal or value for money!