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Growth of deals websites shows the benefits of online

It seems special deals websites are everywhere you look on the internet at the moment, with e-commerce one of the fastest growing business sectors – consumers just can’t get enough.

However, the competitiveness of the market didn’t stop deals.com.au co-founder Adam Schwab from launching a new homewares deal website called The Home eighteen months ago.

Schwab was inspired to start his e-commerce business after witnessing the success of Groupon in the US, convinced the model could work in Australia.

“Small and medium businesses had no cost effective way to advertise and generate new business, other than old fashioned leaflet drops or the yellow pages,” he says.

“We saw flash sales as a way to allow small and medium businesses to harness the power of the internet and social media without having to build the infrastructure themselves,” says Schwab.

The popularity of group buying and flash sales websites has grown rapidly in the past few years as internet-savvy consumers browse for the best deals on all kinds of products and services.

Schwab believes the growth of the business, which saw it merge with Ouffer Australia to from Aussiecommerce in June 2012, has come as both retailers and consumers realise the benefits of online.

“Flash sales is easily measurable and the most cost effective way of advertising. Compared with other risky and expensive forms of marketing like radio, TV or newspaper, on-line is easier to control and a fraction of the price,” he says.

“We are also able to tailor offers to match the needs of our clients. No two offers are the same, each merchant has different needs and requirements, and we have the ability to ensure that we structure an offer in the best possible way for each and every client,” he says.

Revenues for Aussiecommerce have been forecasted to top $50 million this year, but Schwab isn’t falling back on that success.

He acknowledges that the rise of group buying websites means his company will have to work harder, but he believes that being based in Australia gives Aussiecommerce a competitive edge.

“That allows us to stay a lot closer to the ground and make sure we can offer market beating customer support and the highest possible levels of merchant services,” he says.

He says, “The internet is the ultimate equaliser, and if you don’t provide the absolute best service to customers, they will simply vote with their feet and click elsewhere.”


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Gina Baldassarre

Gina Baldassarre

Gina is a journalist at Dynamic Business. She enjoys learning to ice skate and collecting sappy inspirational quotes.

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