Google is Launching Its Own Group Buy Site - Google Offers

scotty on 22/01/2011 - 01:43

Saw this on Mashable:

Google Offers looks and operates much like Groupon or LivingSocial. Users receive an e-mail with a local deal of the day. They then have the opportunity to buy that deal within a specific time limit (we assume 24 hours). Once enough people have made the purchase, the Google Offer is triggered and users get that all-too-familiar $10 for $20 deal for that Indian restaurant they’ve never tried.

In terms of paying out to the merchants:

We’ve also learned that Google will pay out 80% of a business’ revenue share three days after its deal runs. Google will hold the remaining 20% for 60 days to cover refunds before sending the rest.

So Google couldn't buy Groupon for $6 billion so they are rolling their own? Will they be heading Down Under? I'll imagine that it would tightly integrate with Google Maps, Google Local and Google Places. Google's advantage would be massive online infrastructure and big budget, although I heard the customer service there is quite lacking.

Would you buy from Google Offers?

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  • samfisher5986 on 22/01/2011 - 02:00

    People who buy from group buy sites, will buy from anywhere for the right price.

    The fact that its Google will mean people will trust it more then others, and they have the power to give you a very good deal.

    But I know Google will be doing this all differently. I'm pretty sure they don't want to end up like some of the horrible group buy sites here.

    Its interesting how they already factor in 20% for refunds.

    • scotty on 22/01/2011 - 21:31

      Its interesting how they already factor in 20% for refunds

      As far as I know, most group buy sites would reserve some % for a fixed period (2-3 months) for refund purpose. So merchants can receive a large chunk of payment pretty soon after the offer, but will only receive the rest a few months down the track.

  • llama on 22/01/2011 - 08:58

    Google has a great deal more "grunt" than the other coupon sites, and you would hope that they expect a far better level of quality with the vendors and service.

    If you want to build a business online, there is one thing you definitely shouldn't do… and it's to f*** with Google.

    • scotty on 22/01/2011 - 21:34

      and it’s to f*** with Google.

      Reminds me of the '90s. If you are a software company and you have a flagship software product that earns most of your revenue. Then Microsoft comes with a slightly inferior product, but bundled free with the operating system. Then you see your company gets killed in the next 18 months.

      However these days it's a lot diversified online, and Google is far less all-powerful like MSFT were back in the 90s. So you never know…

  • bluedufflecoat on 22/01/2011 - 19:22

    I think Google has a lot to lose, if they stuff this up, i.e. merchants not meeting their end of the bargain, it will make Google look pretty bad. So, I would give them a chance, unless they prove that they are the same as the other group buy sites.

  • Davo1111 on 22/01/2011 - 21:05

    People who buy from group buy sites, will buy from anywhere for the right price.

    totally agree.

    tbh i'd rather google doing something more … stable like a cotd kind of site. Particularly selling cool electronics that we can't get here. now THAT would be a killer site.

    Seagate dockstar
    personal electronics
    Actton mr302a (la fonera)
    google laptop
    etc etc

    The thing is amazon won't ship all their electronics to Australia, sell them here, make a killer profit

    • scotty on 22/01/2011 - 21:38

      The problem is, Google is not a logistic company like Amazon. Nor is a service company like Groupon. A lot of services are automated — which might not be something you want as a customer when you try to shop online.

      But the rumour is that they have been hiring sales people and copywriters. I guess they have already realised that there's only so much they can make from search and ads, and want to try something else? :)

      • Davo1111 on 22/01/2011 - 22:42

        mmmm but google has the ability to use search algorithms and see whats popular, and would be able to sell to particular regions, based on search hits. Means maximum exposure + would know exactly what people wanted.

        • pauly on 24/01/2011 - 03:16

          mmmm but google has the ability to use search algorithms and see whats popular, and would be able to sell to particular regions, based on search hits

          That's their main ammo if they really wanted to compete. But I guess the physical resources required vs the returns are probably not as lucrative in the large scale compared to purely web-based services.

          Personally, I would prefer if they concentrated on their existing services and compete with their rivals. For example, google checkout. My ultimate dream would be for them to do whatever paypal can, make it available internationally, improve their policies on this, minus the exorbitant fees.

  • finance on 24/01/2011 - 15:08

    that's a great idea. would love to have a decent paypal viral.

    yea, i'll probabaly buy the deals if it's the right pirce!

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