This Ought to Thin the Social Commerce Herd

Note to anyone considering joining the group coupon fray:

Both Google and Facebook are getting into the social commerce game.

Begun, the coupon war has …

So where does that leave early leaders such as Groupon and LivingSocial? If they weren’t already challenged by rapidly increasing competition from every direction, they’ve got to be worried about facing down the two overlords of online.

What about smaller group coupon upstarts and wannabes—in B2B services, hyper-local markets, new-baby accessories, etc.?

When the dust settles, there will probably be niches left to fill. In the meantime, it might be best to step aside and let the big guns blast it out.

Can Group Coupon Sites Work for B2B?

You’ve heard of Groupon and LivingSocial (maybe you even broke the bank buying those darn coupons). But what about B2bucks.com or BizyDeal.com?

While deal-of-the-day group coupons are a big hit with consumers, it’s uncertain whether they’ll catch on in B2B. Still, that hasn’t stopped several sites from trying.

The concept usually involves a minimum number of purchases needed for a deal to be activated, serving as a sort of insurance for advertisers. This works well for B2C deals—although not without some profitability challenges.

In B2B, you’re even less likely to make big money directly from a group coupon offer. And yet, maybe that’s not the point.

The value of a social commerce site, after all, is much more social than commercial. Think of it as another marketing channel to reach and engage new prospects.

So, is a deal-of-the-day right for your business? Depends. It’s a more logical fit for small- to medium-sized businesses with transactional business models. Group coupons can help fill the pipeline with new customers for equipment parts, design and delivery services, etc.

If you decide to give it a try, do so as a marketing and advertising investment. Check out these sites: GroupPrice.com , OfficeArrow.com and RapidBuyr.com … and let us know how it goes.