Living Social + Amazon = Boom!


Yesterday, the online-daily-coupon-emailing-company known lovingly as Living Social made 1,301,296 people very happy. Offering 50% off of a $20 Amazon gift card (making it $10 to do the math), subscribers jumped at the chance to cash in (I did). Why would Amazon do this? Probably because it just invested $175 million in the company.

So, let’s do some quick math:

1,301,296 people x $10 savings = $13,012,960 (You can check my math and I won’t be insulted. I’m not good with numbers.)

That’s a lot of money Amazon gave away yesterday. Of course, that’s assuming everyone actually cashes in on the gift cards. And it probably won’t be spent all at the same time. And the entire gift card may not be spent when it is spent. And there’s just a lot of ands.

Overall, I say “Nice job Amazon [pat on the back], I like where your heads at.” But that’s just me. Maybe Groupon should be reconsidering that Google offer…just saying. Also, other businesses out there, people like this kind of stuff…just saying.


2 thoughts on “Living Social + Amazon = Boom!

  1. One of the big “ands” you didn’t mention was how much business Amazon might get that it wouldn’t have otherwise, both from new business (“hey I’ve got this coupon, I’ll get this at Amazon instead”) and from my personal vice, the old “since I’m here, I might as well get a couple other things too” which will lead me to spend $45 instead of my original $20 plan. Add those two to the never-used coupons and I think Amazon will be fine.I do wonder what they were expecting in terms of numbers, though. 100K? 500K? A million-plus is a lot.

  2. Totally agree…and yeah, I’m surprised they didn’t put a cap on it like first 500,000 purchased or something. With the ability of social media to spread the word of something like that, it might well have been 5 million and they could never have known to expect it.

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