American e-commerce marketplace to exit goods market

Groupon revealed its plans after unsuccessful Q4 2019

American e-commerce marketplace

American e-commerce marketplace to exit goods market. Source: shutterstock.com

Groupon has announced it will stop selling goods, according to Ecommerce News. Instead, it plans to focus on the opportunities the local market can provide.

We did not deliver the financial performance we expected during the fourth quarter and we recognize we must move swiftly to put Groupon back on a growth trajectory. The company badly missed revenue targets, with sales of €567 million, while analysts were expecting €653 million
Rich Williams, Groupon CEO 

The decision to exit goods market came from the fact Groupon couldn’t compete with such giant retailers as Amazon, eBay, Walmart. The problem was that customers didn’t think of Groupon as a place with better prices where they could buy apparel, toys, electronics, etc.

The company considers the plan to stop selling goods online as an opportunity to focus more on services, as the purchase of experiences keeps on migrating online. As for 2020, Groupon intends to enlarge its inventory, modernize products, and refresh the brand.

SEE ALSO:

facebook