AmazonLocal Makes Daily Deal History

by Jodi Jae 21. March 2012 13:07

When AmazonLocal launched in mid 2011, the welcome news reverberated everywhere, making headlines around the world., considered by experts to be a more mature company than many of the original daily deal website kings, was expected to score big in the social buying network arena. Add to that the fact that AmazonLocal launched itself in Chicago, home to daily deal giant Groupon, and you had the makings of a superstar arm of Amazon. This week, Amazon offered a deal that was not only a hit in the daily deal market, but outsold every other daily deal that came before it, and made daily deal history.

The Amazon deal that rocked the web

On Tuesday, March 20, AmazonLocal offered members the opportunity to buy Amazon gift cards at half price. On Tuesday, all $10 Amazon Gift Cards were priced to sell at just $5. And sell they did.

Isaac King, daily dealer shopper in Elgin, IL, immediately jumped on what he thinks was the perfect deal. “Because the gift cards never expire and can be used on literally millions of goods and services from Amazon, this is one deal I could never pass up,” King was quoted as saying. “AmazonLocal just earned a spot in my daily deal bookmarks.”

Savvr, a daily deals analytics service, says that AmazonLocal has set a new record for the fastest-selling daily deal buy in the history of the industry. According to Savvr, the 1 million Amazon Gift Cards available sold out in only 17 hours, 12 minutes.

Amazon gift cards always a big seller

One of the most popular daily deals ever offered happened courtesy of Amazon and daily deal giant LivingSocial. In January of 2012, $20 gift cards were offered for just $10, and by 11 a.m. on the day of the deal, more than 300,000 cards had been sold. By the close of the business day, more than 1 million gift cards were purchased, making the sale one of the most successful daily deals of all time.

Amazon not just selling gift cards, but gaining subscribers

Savvr's Tim Elliot said that the average cost of acquiring a daily deals subscriber is approximately $5, based on Groupon's public data and industry statistics.

Elliot says,“Amazon not only paid that amount but they also acquired substantially more valuable subscribers: Customers who are known to make purchases online and now these customers can place 1-click orders as well. These subscribers are substantially more valuable than a regular list subscription that may never materialize into a buying customer.”

AmazonLocal opened their doors for business less than one year ago, in June of 2011, and they currently offer daily deals in 26 states and Washington, D.C.


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