Amazon to sell $10 cards for $5 to lure customers

Mar 19, 2012

Amazon is hoping that five bucks will get you in the door to its local deals site, AmazonLocal.

Amazon.com Inc. will be selling $10 gift carts for $5 on Tuesday to people who visit AmazonLocal.com. That's the online retailer's answer to deals sites such as Groupon and LivingSocial. The gift cards are good for anywhere on Amazon.com, not just the local deals site.

Amazon isn't saying how many of the cards it is selling. Last year, LivingSocial sold about 1.4 million of $10-for-$20 Amazon . LivingSocial is part owned by Seattle-based Amazon.

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NotAsleep
not rated yet Mar 19, 2012
If living social is part-owned by Amazon then why is Amazon creating a competing business model?
bhiestand
not rated yet Mar 19, 2012
Probably because Living Social is still not as popular and is dwarfed by Groupon's success. I imagine Amazon feels their investment has not paid off, and that they are well suited to compete directly against Groupon in this market.

Of course, I could be completely wrong. I'm not a huge fan of the business model. It seems to harm a lot of small businesses...