Groupon will no longer sell physical items such as toys, beauty products, clothing, electronics, or household items, the company said on Tuesday. Instead, after another weak business quarter in which sales fell 23 percent, the Deals website will once again focus on experience.
"We believe that our plan to sell goods will allow us to use the focus and resources required to build a successful position as experience buying continues to migrate online," said Rich Williams, CEO of Groupon, in a statement.
The decision to stop selling physical products was made when the company realized that it was competing in a saturated market dominated by giant retailers such as Amazon, Walmart and eBay. Consumers simply didn't see Groupon as the place to buy clothes and accessories, even if the prices were a bit better. (For example, an iPad Pro Smart Cover for the older 10.5-inch model costs $ 33.99 at Groupon, $ 49.99 at Best Buy, and $ 39.99 at Amazon.)
Groupon wasn't exactly a retail destination for the most desirable items either. A quick look at the Groupon Goods homepage usually shows cheap items like chargers, Q-tip dispensers and socks – basically things you would buy as gifts for people you don't really know.
The company will cease selling items in the U.S. by the third quarter and worldwide by the end of the year. So if you see good deals on cheap batteries or coffee pods, these are the last few months to get hold of them.