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Groupon Review How Does Groupon WorkA small start-up marked the beginnings of Groupon in 2008. This company started as a daily deal service that worked on the premise of social networking. Each day, Groupon would center a daily deal within your region or zip code. This deal would not be available for release until the desired number of users signed up to reveal this coupon. The brand has sense grown to a massive market but holds grips to daily offers to keep avid users rewarded.

The company now operates from two formats: web-based content and a mobile application. With brand growth came the need to display more offers for their customer base. The site can now be geared toward your living region or be searched for global offers.

The beginning premise was to offer users local deals to better help keep small businesses afloat. Groupon earns a commission from each order that is placed with their carried companies, keeping the both parties satisfied. Local businesses gain new customer bases and can help develop their brand, products, or services via these simplistic marketing tools.

Below, we will dive into the company as a whole, detailing the aspects of the business and citing different areas of usage.

What is Groupon?

Groupon is a shopping service that offers coupon codes to be used across a large range of outlets. They also offer exclusive packages as they relate to travel, experiences, and material goods. Groupon scours the web when searching for national coupons, keeping a steady library for the consumer to select from. The national deals will often carry less commission for the company, but holding these offers satisfies their vast consumer base.

Groupon works with local businesses on a commission basis to provide deals. They display the offers on their website, earning each time someone claims an offer or makes a purchase with their rostered company. The company earns the business of new users, satisfying their bottom lines. The relationship between Groupon and rostered businesses is what keeps a steady flow of offers coming and going from the Groupon store.

The brand is derived from the word “group” and “coupon.” The group aspect was the original processing that got these offers up and running. The change of pace to a marketplace affixation occurred in 2011, a time when the consumer base was expanding rapidly.

The marketplace model makes the site searchable, allowing users to locate the type of service they desire or narrow the product selection via web-based tools. This added a deeper element to the usage rates the site was receiving, calling for an upgrade of content allocation. The site is now fully searchable, allowing users to utilize a drop-down menu to narrow their selections.

Groupon Review: How Does Groupon Work?

How Can I Save with Groupon?

System upgrades have increased the boundaries of sales for Groupon. Limited focus is exchanged for presence in all aspects of sales. Below are just a few of the ways that the customer can utilize the Groupon service to help save money.

Shopping Local

One of the main target areas for Groupon is through local connections. Groupon works with niche providers within your area to help gain you access to incredible discounts and savings. Groupon takes a small portion from every sale, while the merchant enjoys the rest. The merchant also gains brand recognition and the opportunity for low-cost marketing.

The user buys from this local brand, keeping money within a community. It becomes a consumer's responsibility to shop local to ensure these products and services are steadily available within their region. Groupon's search tools allow the user to narrow their search between surrounding cities and towns or specify their desired zip code.

Some of the most common deals found within this platform boil down to services. Anything from day spas to automotive services are offered at a deep discount. Straying from brand-name chains and companies allows the user to gain access to the same services at lower costs. This creates a trifecta of satisfaction between consumer, merchant, and Groupon.

National Outreach

Groupon does not limit their service and coupon types. They categorize the content for ease of access, but this does not limit the scope for the types of deals the user can find. Most of the national content is geared towards travel plans, electronics, and other items that often carry name-brand recognition.

The same partnership goes into these offers, but they come at a lower clip for Groupon. This is where it becomes the user's best decision to expand their search. Price matching with competitor websites or companies that are geared towards this content may prove to be a better deal.

For example, Groupon will offer travel packages and vacation vouchers, but Priceline and Trivago specialize in travel packages. Most price points remain competitive, but there are instances where the competitor can beat Groupon's rates. It boils down to the customer's willingness to compare the price differences between available offers across multiple platforms.


Utilizing a portion of their namesake, Groupon scours the web daily to create an influx of coupons available to the user. These discount codes often come from major retailers, department stores, and other such mixed content providers. These coupons are often limited-time offers, so it is best to check with expirations with this content.

These coupons are also general extensions from the retailer themselves, so there might be excluded items that won't qualify for coupon usage. Since this is a general collection technique utilized by Groupon, they cannot predict the exclusions that companies will hold. Each coupon clearly states the route of usage, applying the brands that qualify for the percentage discount and listing the brands that don't participate in coupon usage.

This is another area where you will have to check rebate status prior to usage. Most rebates will prohibit the use of a coupon, which can be a hassle for the consumer. Ensure you read the fine print on each of these items, releasing you from falling into a discrepancy between offers.

Mobile Application

The development team at Groupon works tirelessly to present seamless releases of content. The web-based content is updated daily, ensuring the user gains the most time possible to access these offers. Mobile application development helps to crossover this content to a platform that supports on-the-go usage.

Simply pull up a coupon from your mobile device and have it scanned with your in-store purchases. Groupon creates a virtual wallet that allows the user to clip their favorite deals and store them before purchasing. Reminders are also utilized to help prevent these coupons and offers from expiring. This application is in most app stores and is featured for free download for the user.

Groupon Review: How Does Groupon Work?

Bargaining Power

One instance where the user will notice a head-up on the competition is via bargaining power. The local aspect is where this power is exercised most effectively. Stores understand the different cuts that are associated with a purchase. Groupon takes a certain percentage of all sales and the merchant gets the rest.

For example, if a good is offered for $40 on Groupon, it never hurts to contact the retailer in favor of lowering the price. If they agree to lower the price to $30, they can avoid having to pay Groupon their commission fee, netting more from that purchase than they would have if they had to fork over a commission percentage.

The user also gains by obtaining this good at a deeper discount. This method is not supported with every offer, as contacting larger brands is not easily performed. The local marketplace represents the best opportunity for the user to make an attempt at bargaining.

What to Watch Out For

When it comes to coupon redemption, there are always things to keep in the back of your head. The fine print located on the coupon will be your greatest advocate. Study this prior to assuming seamless usage. Some offers will carry different dates where they can be used.

For example, some companies will only allocate a few days of the week that allow for coupon usage, rendering a coupon useless if you show during a different period. Availability of a service often extends to a first come, first service route. Let's say a company is offering a free filter installation with the purchase of an oil change. A store only houses so many filters, and when they're gone, they're gone. You must account for variance and the inevitable when redeeming time sensitive offers.

Some companies will attach a minimum purchase with their offers. Users will often need to reach a pre-tax number prior to redeeming. The pre-tax amount represents the number that companies will refer to.

For example, if you need to spend $50 to redeem a $10-off coupon, an item that displays a retail price of $49.99 will leave you cut just short of claiming. This is something that major retailers and department stores will hold dear, so be aware of this stance prior to purchase.

Redeeming a travel package can also be a little hairy. Most travel packages come at a deep discount due to the dates they can be redeemed for. It is not secret that people like to travel on the weekends and during the holidays, so a flight package available for use on any Tuesday in April might not be as attractive to the user.

It all comes back to reading the print on the label before attempting to use. This will create the desired knowledge about an offer and will help ease the decision-making process for the user.

Groupon Review: How Does Groupon Work?


Groupon's growth is encouraging, and their expanded outreach deserves praise. Most of their featured coupons that are gathered across the internet come with little net gains. They might receive a per-click-payment handed down through that retailer, but it never amounts to much. This showcases that they are willing to put customer needs at the forefront of the conversation.

Their web-based and mobile content is created to be searched with ease. Toolbars and search suggestions help the user to narrow their selections with ease. Partnering with some of the largest retailers in the nation also gains Groupon access to exclusive content that cannot be found elsewhere. Keeping the idea of shopping local alive continues to place this company in a positive light.

There are too many positives to outweigh anything negative that could be attached to this brand, marking them as one of the top, free outlets a user can utilize when making purchases in-store or via online locations. Always hold up your end of the deal by affording yourself the ability to compare against other sites and coupon brands.

Groupon is all encompassing, meaning there could be a marketer that only works in a specific field or industry. Utilize your bargaining skills to help increase the discount available to you. Groupon is the tool that helps get your research started, but it is on you to perform the remainder.

With all that was said, we have nothing but praise for Groupon as a company and a provider. Groupon is one of the coupons app that works, and it's in your hands to open your mind and find out where they can work to provide you with daily deals and offers.


We spend money on a daily basis, and Groupon can help us continue to go out while saving us money. Groupon offers an easy way to find coupons without having to search through each individual business. To get the best out of Groupon, our frequently asked questions section aims to answer any questions you may have.

General Groupon FAQ

If you’re new to Groupon, not to fear. Groupon is easy to use, and you’ll quickly get the hang of it. The following section provides you with answers to the basic questions on how to use Groupon.

How does Groupon work?

Groupon works by offering customers big discounts that you might not find anywhere else. By offering businesses millions of potential buyers, Groupon is able to offer their products at a reduced price.

What is Groupon?

Groupon is a website and app that customers can use to find items (such as tickets, restaurant deals and physical goods) at a discounted price.

Is Groupon legit?

Groupon is legit, and you can find real deals and offers on a daily basis. Many deals offer 50% off their original price.

How to use Groupon?

You can use Groupon by going to and searching through their deals. You can also shop by department. When you find a deal you like, create an account to purchase it.

Is Groupon safe?

Groupon is safe as they use industry-standard encryption technology to secure your payment information and your personal details.

How do I live chat on Groupon?

You can live chat on Groupon by going to their Customer Support section. From there, select Live Chat and you can start live chatting as soon as an agent is available.

How to redeem Groupon?

Instructions on how you can redeem your Groupon are found with your individual Groupon. Head to My Groupons and select View Details next to your Groupon. This is where it will instruct you how to use it.

How does Groupon make money?

Groupon is the middleman, connecting customers with businesses. Groupon is paid for every customer they refer to a business.

How do I contact Groupon by phone?

To contact Groupon by phone, go to the Customer Support section and request a call. After you provide your phone number, an agent will call you back Monday – Friday 8am to 6pm CST.

Is Groupon free?

Groupon is free for users to use. After all, it’s all about saving you money.

What are Groupon bucks?

Groupon bucks are credits that can be spent on your Groupon purchases. You can view your Groupon bucks from your Account page under Groupon Bucks.

How do I find my Groupon purchase?

You can find your Groupon purchases by going to the My Groupons section. Click View Details on your order to get more information on each purchase.

How to use Groupon gift card?

To use a Groupon gift card, select the Promo or Gift Code option at the checkout page. Enter your 16-digit card number and 8-digit PIN to complete your purchase.

How to print Groupon?

You can print your Groupon by going to My Groupons, clicking on View Details and selecting View Voucher, where you can then print it. Sometimes you'll need to get better inkjet printer ink if the barcode isn't printing well enough.

How does Groupon cash back work?

Groupon’s has a program called Groupon+ where you can receive cash back on Groupon+ deals. Link your card and go to a participating business, and you’ll automatically get cash back.

How much does Groupon cost?

For customers, Groupon is free to use. This is because Groupon charges businesses for every coupon that’s sold so that customers can focus on saving money.

Is Groupon worth it?

Groupon has no cost to use for customers, and there is a daily deal that you won’t likely find anywhere else. Since there’s nothing to lose and only money to save, Groupon is worth using.

How to save items on Groupon?

If you would like to save your items for later, you can click the heart icon on any deals you like. You can later view your saved items in your Wishlist section.

Do Groupons expire?

Yes, Groupons do have an expiration, and you can view your Groupon’s expiration date in your View Details page.

How do I track my Groupon order?

To track your Groupon order, go to your My Groupons page and select the order you would like to track. Then select Track Package to view where it’s currently at.

Are Groupon travel deals worth it?

Because Groupon is able to offer significantly lower prices, travel deals on Groupon will be much lower than on the travel company’s page.

Is Groupon really a good deal?

Groupons is able to gather good deals because of the number of customers it can point towards businesses. You can find many deals at 50% lower prices than originally marked. You can even find cell phone deals. In fact I helped my grandpa find a phone there then found the best cell phone plans for seniors to make for a combined cost effective phone.

Do Groupon deals come back?

Groupon deals depends on the business behind them. Sometimes a Groupon deal will only be run once, while other times, a deal can run multiple times.

Can you trust Groupon deals?

Groupon works hard to get the best daily deals so that customers like you can receive the best deals possible. Many deals are discounted 50% off their original price.

How often does Groupon update deals?

Groupon updates their deals on a daily basis, and it’s known for its deal of the day. So, it’s worth looking through Groupon daily to get the best deals.

How to save Groupon deals?

To save a Groupon deal, you can add it to your Wishlist. To do this, click on the heart next to the deal you’d like to save for later.

Does Groupon have hotel deals?

Yes, Groupon has many hotel deals and even has a whole section (called Getaway Deals) on traveling and going on vacation.

How long do Groupon deals last?

Each Groupon deal varies on their expiration. If you would like to view the expiration date for one of your deals, go to My Groupons and select View Details on your deal. From here, you can view the expiration date.

What is Groupon local deals?

Local deals are deals that you can find near you. These include deals on restaurants, shows and events in your area.

How reliable are Groupon deals?

Groupon is focused on bringing you the best deals you can find, and they actively filter low quality deals to only bring you the best. There are many other apps though that can help you save money and in fact there are automatic savings app options you may want to check out.

Groupon For Businesses

Groupon is a great way to reach a large audience and expand your business. The following section focuses on how you use Groupon for your business.

How to sell on Groupon?

You can sell on Groupon by going to Here, you can set up a merchant account and create your own deals on Groupon.

How to advertise on Groupon?

You can submit your information to Groupon through the Groupon Merchant section to be considered as a featured deal. If you’re a good fit, a Groupon rep will contact you.

How to post on Groupon?

If you would like to post your own Groupons, go to On this page, you can set up your merchant account and start posting your own Groupons.

Is Groupon a good deal for small business?

Groupon is a great way to bring in new customers as Groupon has millions of existing customers browsing their deals every day.

How much does it cost to do a Groupon deal?

If you are a merchant, Groupon will take a percentage of every deal a customer buys. For more information on cost, go to Groupon’s Groupon Merchant page.

How to end a Groupon deal?

If you would like to end a Groupon deal, go to your Merchant Center page. From there, click on the Now! Deals tab and click “close” for the deal you would like to end.

How does Groupon work for businesses?

If you’re a merchant, you can bring in millions of potential new customers by offering your product at a discounted price on Start today by going to Groupon’s Merchant page.

How much does Groupon take?

If you are a merchant on Groupon, Groupon takes a 50% cut from most of your deals. However, if you’re a customer, Groupon’s fees don’t affect you.

Groupon Trade Ins, Refunds and Exchanges

Sometimes, we change our mind about what we just purchased. On those occasions, it’s helpful to know what your options are when it comes to trade ins, refunds and exchanges. Read on to learn more.

How to get a refund on Groupon?

The refund policy on Groupon varies depending on what you purchased. For example, a local deal gives you three days to get a refund, while a GrouponLive deal is usually final.

How to return a Groupon?

To return a Groupon Goods item, go to My Groupons. Click on View Details next to your order, and click Return Package. Print the mailing label and attach it to your package when you ship it back.

How do you get a refund on Groupon?

If you would like to get a refund, check first if your item is eligible for a refund (as each product type has a different refund policy). Reach out to customer service for help on refunds.

Can you return a Groupon?

Yes, you can return a Groupon if it’s eligible for a return. When returning a Groupon Good, make sure you ship it with the provided return label or it won’t be valid.

How to get a refund on Groupon after 7 days?

Different deals have different refund policies. A Groupon Good, for example, can be refunded if it’s within 30 days of purchase while a GrouponLive deal is a final sale and cannot be refunded.

How to trade in Groupon deal?

To check if your Groupon is eligible for a trade in, go to My Groupons and select View Details. If your Groupon is eligible, you’ll see “Trade In Voucher” next to your deal.

How to cancel Groupon order?

Navigate to the Customer Support section. Select the order you want to cancel and select Cancel Order (displayed if the order is eligible for self-cancellation).

Other Groupon FAQ

There are many other questions you may have regarding Groupon, including how to delete your Groupon account, how to manage your subscriptions and how to get invite only deals.

Does Groupon have black Friday deals?

Yes, Groupon does offer Black Friday deals, and you can view them by selecting Black Friday / Cyber Week Deals or by searching Black Friday deals in the search bar.

How to delete Groupon account?

To delete your Groupon account, contact the customer support team. They will be able to deactivate your account. If you’d only like to stop receiving offers, you can unsubscribe from their emails.

Did Groupon buy LivingSocial?

Yes, Groupon bought LivingSocial, it’s main competitor who also provided customers with daily discounts.

How to unsubscribe from Groupon?

You can unsubscribe from Groupon by opening an email sent by Groupon, going to the bottom of the email, and selecting Unsubscribe. Alternatively, you can unsubscribe from your Subscriptions page on Groupon.

What does deal not eligible for Groupon incentives mean?

There are some Groupon deals that are not eligible for incentives such as promo codes. Read the fine print in each Groupon deal to see if the deal is eligible for promos.

What are other deal sites like Groupon?

The biggest Groupon competitor was LivingSocial, but it has since been bought by Groupon. To get a list of other sites, search online for “sites like Groupon”.

How to get Groupon invite only deals?

Groupon’s way of rewarding their valued customers is by sending them invite only deals. These deals can only be found if you are a subscriber to their daily deals.

How to gift a Groupon?

For Vouchers and Groupon Goods, you have the option to purchase it as a gift for someone else and even create a custom card to give to the recipient.

Does Best Buy price match Groupon?

Currently, BestBuy only price matches a limited number of online retailers, and Groupon isn’t included in this list. For a full list, visit BestBuy’s Price Match Guarantee page.

Who owns Groupon?

Groupon was founded by Andrew Mason in November 2008. Currently, Rich Williams is the CEO.

How to send a Groupon to someone after purchase?

If you have a GrouponLive Tickets or Groupon Getaways, you can simply add their name as the ticket holders and then send the tickets via email. For vouchers or Groupon Goods, you can send them as gifts.

How do I know if my Groupon has been redeemed?

You can tell if your Groupon has been redeemed because you won’t be able to view or print it. If it’s been mistakenly redeemed, reach out to Customer Support.

How to write a review on Groupon?

If you’d like to leave a review, go to the My Groupons section and selected the “Redeemed” view. From there, find your order and select Write a Review.

How to change email on Groupon?

To update your personal information, log into Groupon and head to your Account page. You can update all of your personal information here, including your name, password and email address.

How to sign up for Groupon deals?

If you would like to sign up to receive notifications for each daily deal, you can go to Groupon’s sign-up page and start a new subscription. For existing customers, change your preferences on your Subscriptions section.