Amazon is going to share the pie of group buying

Many companies are imitating the revenue model of Groupon. Amazon is not going to be an exception too. With AmazonLocal, Amazon plans to enter the daily deals space.

AmazonLocal is an online marketplace where users can buy vouchers or deals for goods or services from local businesses. Currently, the website is only available for Amazon customers who are staying in Boise, Idaho.

Why start from Boise? Amazon gave an interesting answer:

“The blue football field represents just the kind of adventurous spirit we want our customers to experience every day. We will quickly be expanding to other cities, but we liked the idea of starting in a city that embraces fun.”

Just like Groupon, AmazonLocal provides exactly the same service that is offering a deal for a limited period of time, giving 50% on each deal. However, Amazon is not sourcing the deals on its own as it is partnering with other companies that will source deals for its customers.

Customers will be able to earn 3 points on each deal. By December 31, users can earn 5 points when they are buying the coupon using Amazon.com Rewards Visa Card.

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