Today Groupon Inc (NASDAQ:GRPN) rolled out an online bulk service called Groupon Basics, which will help customers save money on more than 100 household, personal care and health items by purchasing them in bulk. The new service will offer almost everything, ranging from vitamins to shaving supplies.
According to Aaron Cooper, senior vice president of Groupon Inc (NASDAQ:GRPN), “We’re putting the bulk buying power of Groupon to work for our customers, helping them save on serious quantities of the things they buy and use every day–all from the convenience of their home.”
More value for customers
Cooper added that by launching this service in the marketplace, the online company is trying to offer value to customers and reasons to opt for Groupon Inc (NASDAQ:GRPN) over other retailers. There are no membership or monthly fees. Moreover, the company will keep on adding other items related to household, personal care and health and wellness items.
Customers will be able to buy whatever they want, which will then be delivered to their address. In order to promote and popularize the service, Groupon Inc (NASDAQ:GRPN) will give 5% back in Groupon cash, which can be used for the next purchase.
Presently the deal is on the following notable brands: Gillette (Gillette Fusion ProGlide Power Razor Heads), Dove (Clinical Protection Cool Essentials Antiperspirant Deodorant), Airborne (Lemon-Lime Immune Support Supplement), Pantene (Pro-V 2-in-1 Strengthening Shampoo & Conditioner), and Burt’s Bees (Ultimate Care Hand Cream).
A spokesperson said the company will not opt for tens of thousands of SKUs, but rather, will offer customers a streamlined inventory.
A right move from Groupon
Groupon Inc (NASDAQ:GRPN) has made the service available in the continental United States, and customers will get free shipping on all orders of $24.99 or higher along with free returns.
Groupon Inc (NASDAQ:GRPN) is certainly doing the right thing by investing in the expansion of its Goods service, as the segment contributed $1.87 billion in revenue in 2013 on total revenues of $2.6 billion. The Goods service segment is the company’s fastest growing segment at present, as Goods increased 25% from $1.49 billion in 2012, while overall, Groupon gained 10% in 2012 to $2.3 billion.
Since March of this year, the company has been testing the service on small businesses and individual consumers. Groupon Inc (NASDAQ:GRPN) directly acquires the goods from the vendors and distributors and stores them in its Hebron, Ky. warehouse, which was opened last year.
