A discussion with a local retailer has opened up new considerations to how deal sites make their money. It seems unclaimed vouchers are now become a new revenue source for these deal sites.

With about 80+ deal sites in Singapore alone, merchants are spoilt for choice. With these deal sites having almost the same database size, the transaction fees are often what seals the deal for these sites.

Groupon is known to charge up to 50% off the discounted price, but some local sites are charging as low as SGD1 per transacted voucher.

With transaction fees now being squeezed, deal sites are now dependent on expired and unclaimed vouchers for revenue.

When a customer makes a purchase of the coupon, the deal site doesn't pay the merchant instantly. The merchant is only paid when the voucher is claimed by the users. If the voucher expires and is unclaimed, the deal site keeps the full amount that is paid for the voucher.

For example, if a F&B merchant offer a SGD20 voucher for SGD10 on a deal site. When the voucher is claimed at the outlet, the deal site pays the merchant SGD9 and keeps SGD1.

If the voucher has expired and remains unclaimed, the deal site keeps SGD10.

It seems F&B vouchers tend to have a high rate of expired unclaimed as high as 30%.

Daily deal sites are now facing the same problems of attracting new merchants and justifying the transaction fees.


1 comments

  1. Mr Lonely  

    November 3, 2011 at 1:21 PM

    walking here with a smile. take care.. have a nice day ~ =D

    Regards,
    http://www.lonelyreload.com (A Growing Teenager Diary) ..



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