UPDATED 10:38 EDT / OCTOBER 25 2010

Groupon and eBay partnership Generates Money for All

Shopping websites Groupon and eBay announced a national incentive agreement. Effective today, Groupon deals will be featured at eBay.

“This affiliation blends the unbeatable deals and unique experiences of Groupon with the depth and breadth of merchandise on eBay,” said Sean Smyth, Vice President of Business Development at Groupon. “Now, shoppers can connect with the best local businesses in their area with the bonus of earning eBay Bucks.”

Groupon is currently running across North American markets, with 200 deals per day. Its geolocation feature will be most advantageous for eBay in determining deals at neighborhood level.  The startup has prompted a revolution, steeped in localization methods that have been successful avenues for marketing and consumer adoption.

“Teaming up with Groupon allows us to surface deals tailored specifically to eBay users and then reward them for shopping,” said Kurt Apen, Senior Director Loyalty & Consumer Marketing, eBay. “The eBay Bucks Rewards Program is free to join and simple to use, providing customers with one more reason to check eBay first.”

Th inclusion of Groupon at eBay is also a mark of the auction site’s expansion into various niche markets.  In order to reach out to consumers, whom are offered a great deal more options for electronic shopping, eBay must continue to find services their users will want.  Becoming an aggregate portal of sorts has been a goal of eBay on many fronts, including a focus on seller tools, and mobile services.  The rewards cross-over is a marketing incentive that a number of industries, virtual and otherwise, are able to latch onto.


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