Amazon Makes a Local Offer You Can’t Refuse
In an effort to boost customer interest and awareness, Amazon.com Inc. (NASDAQ:AMZN) will sell $10 gift cards to its site for half the price on Tuesday. The offer will be available through its daily deals site, AmazonLocal.
Amazon launched its once named Groupon (NASDAQ:GRPN) killer last year, but has attracted little attention so far. “Some folks, even if they’re Amazon customers, don’t know about us yet,” says AmazonLocal vice president Mike George. “This is going to draw a whole bunch of people to check us out.” AmazonLocal provides local deals that can save customers up to 75 percent on restaurants, spas, entertainment and more.
Although Amazon will obviously lose money on initial gift card sales, the company believes it will be money well spent. George says, “It’s hard for me to imagine anyone who wouldn’t be interested in the deal. Amazon sells everything from Brazillian keratin treatments to snow-blowers.” Last year, Amazon ran a similar deal on LivingSocial that sold almost 1.4 million $10-for-$20 gift cards. George did not reveal how many Amazon gift cards will be offered on Tuesday, but AmazonLocal has spread to 90 cities in 26 states.
With the new Apple (NASDAQ:AAPL) iPad hitting stores Friday, any attention Amazon can attract towards itself will likely be positive. Also, the daily-deal industry is not short on competition. Google Inc. (NASDAQ:GOOG) has slowly started to roll out Google Offers, which offers great deals “from food to fun.” Meanwhile, Yelp Inc. (NYSE:YELP) has its own deals service.
Investor Insight: Will a Release in the Emergency Oil Supply Really Help Oil Prices?
To contact the reporter on this story: Eric McWhinnie at email@example.com
To contact the editor responsible for this story: Damien Hoffman at firstname.lastname@example.org