Groupon vs LivingSocial

Do you like to look for discounts in order to get the most value out of your money? Or, are you a local merchant looking for an effective way to reach your customers? Either way, you will benefit greatly from services like Groupon and LivingSocial. These two are e-commerce marketplaces where people can sell and buy goods and things quickly, easily, and effectively. Many shoppers prefer to browse and spend their money in such places because these places often offer awesome discounts and promos. For local merchants and vendors: On an e-commerce marketplace, you will be able to reach a wider range of customers and buyers. With a little extra effort, you can further promote your goods on social media in order to quicken your sales.

Right now, Groupon and LivingSocial are two of the biggest e-commerce marketplaces on the Internet. However, according to their leaders, they focus on different things, and thus come with different approaches. Still, they can be considered as direct competitors to each other, considering that people usually end up confused whether to go to Groupon or LivingSocial. Below, we will see the comparisons between the two!

What is Groupon?

Groupon is an e-commerce marketplace that connects subscribers with local merchants, offering goods, services, travels, and activities in over than 28 countries around the world. Even though the company is based in Chicago, Illinois, USA, it has served worldwide users. It was launched for the first time in November 2008. Today, Groupon is available in over than 500 cities across the world, with nearly 48.1 million active users and more than 425,000 active deals. In 2010, Groupon was said to be on the pace to make $1 billion sales faster than any other business ever. Even though it experienced a loss at the closing of 2011, it has continued to grow to be one of the biggest global e-commerce marketplaces.

What is LivingSocial?

Quite similarly, LivingSocial is also an online marketplace where registered users can buy and share things in their city. It was actually founded before the launching of Groupon; June 2007, to be precise. Since then, it has expanded its service to 27 countries all around the world with roughly 70 million members. The headquarter was located in Washington D.C., USA. However, LivingSocial was purchased by Groupon in October 2016, and thus the headquarter was closed. So, these two services are actually owned by the same company now.

Just like Groupon, though, LivingSocial is still active and operating. Of course, instead of shutting down the competitor, why don’t Groupon just make more profit from it? Still, being owned by the same company does not change LivingSocial so much, as far as the users concern.

Groupon vs. LivingSocial: Product Quality

Many users have reported that the product quality on LivingSocial is higher than that of Groupon. This seems to be because LivingSocial is more selective on the deals and sellers. Thus, a higher standard is maintained across the board, ensuring a good and satisfying product quality when the buyer receives the item. Prices here don’t go as low as Groupon, but the product quality is relatively better.

Groupon vs. LivingSocial: Discounts

The competition between Groupon and LivingSocial is real. It can even be felt by the users, merchants and shoppers alike. Hence, some people have conducted their own researches to see which one of the two is actually providing the best deals.

Turns out that Groupon has better deals than LivingSocial. There are two reasons for this statement. First, the daily deals that appear on Groupon vary from 50 percent to 80 percent off. The ones that appear on LivingSocial are mostly just 50 percent off. So, there is a big chance that you will get a bigger discount from Groupon than from LivingSocial for the same object. Second, great deals appear on Groupon noticeably more often than on LivingSocial. Great deals in the sense of low prices on the things we want. But, of course, this can be quite subjective, as different people are interested in different things and topics.

Groupon vs. LivingSocial: Returning and Maintainable Customers

Now, we will talk about something that is more related to the merchants. Even though Groupon’s daily deals are awesome for the shoppers, they are not for the merchants. The problem with the ‘great’ daily deals is that they cause a one-time rush of buyers that mostly don’t ever come back. Those buyers simply buy the item because of the discount, a.k.a. getting something for little to nothing. And for a mediocre merchant, there is nothing more exhausting than a sudden surge of demands. Several retailers have mentioned that maintaining customers on LivingSocial is easier. Getting customers coming back for your item is easier on LivingSocial, apparently due to the fact that these people are more quality-conscious.

Groupon vs. LivingSocial: Customer Service

There has been some rumor circulating that the customer service of Groupon is terrible. There is a Chicago-based entrepreneur that says he had experienced an awful experience with Groupon. He says that the sales rep was slow and not responsive. Working with LivingSocial’s customer service is much better; they even go as far as planning the timing of the deal for the best outcome. They actually wait for the best time to release the deal, instead of just rushing things out. We can’t be one hundred percent certain about his neutrality, but this is still a thing to consider.

GrouponLivingSocial
- Relatively lower product quality- Better product quality
- Higher discounts (50-80%) and more frequent great deals- Mostly just 50% discounts
- Many one-time buyers that come only for the discounts- Easier to develop returning customers
- Relatively worse customer service- Better customer service

Conclusion

Even though Groupon comes with bigger discounts and great deals more frequently, LivingSocial seems to be better in terms of product quality. For the merchants, LivingSocial also seems to be a better environment to develop loyal customers, due to the fact that the buyers here are more quality-conscious and are not buying things just because they are cheap. So, LivingSocial is the winner of this comparison, at least for the current time frame. Groupon may outgrow LivingSocial later, considering that the two are now owned by the same company, but it will take some time.

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