News & Media

Hysteria drives sales on one-day websites

By ROB O'NEILL - Sunday Star Times

 

When American magazine Forbes last month named Groupon.com "the fastest- growing company ever" it drew attention to an online phenomenon, the one-day deals websites that are springing up in all sorts of variations, both globally and locally.

 

Kiwis like a bargain as much as anyone, but the ease with which such websites can be created has resulted in a glut of one-day deal offerings and to some predicting a shakeout as smaller players fall by the wayside.

 

Forbes noted that these sites inject hysteria into web bargain- hunting, often featuring a clock ticking down time until a bargain closes. They also do what many of the first generation of dot-com companies failed to do - make real money. When Groupon.com was only 17 months old, the company was valued at $1.9 billion, and it is likely to surpass $689 million in revenue this year.

 

No surprise then that local online entrepreneurs have been quick to bring the concept home and to build a number of variations, specialising in servicing particular areas, particular markets or experimenting with new models, such as "social buying".

 

Auckland-based Dinesh Kaku is behind Dealaday.co.nz, which he reckons was the second local one-day deals site behind 1-day.co.nz.

 

"A year ago there were three or four sites," he said. "Now a lot of people have jumped in."

 

So how do these sites differentiate themselves and draw attention amid all the online noise?

 

Dealaday.co.nz offers free products from time to time and that brings people back, Kaku said.

 

It also helps build an all-important customer database to be marketed to in future. Dealaday has a base of around 30,000 users on its database.

 

The site also offers "Dealaday dollars" back to customers as a kind of rewards system.

 

Change and experimentation are also required online. Kaku does not want to disclose his plan in detail, but, suffice to say, a new format can be expected at Dealaday.co.nz in the next few weeks, to keep ahead of the market.

 

Kaku said it could be tough going for new players to make an impact in what has become a crowded market. Some with major backing, such as Grabone.co.nz (APN), can probably find a place, but others without that kind of support could "fall apart", he said.

 

That said, there are still models to be explored. Kaku, for instance, is looking at social buying and bargaining, allowing groups wanting to buy the same thing to aggregate their demand online and bargain with suppliers for the best deals.

 

One newer entrant that appears to be making headway is Dailydo.co.nz.

 

The co-founder of the six-month-old company, Dave Healy, freely admits to be inspired by US giant Groupon. Dailydo.co.nz is different from many other sites in the market in focusing on services - in areas such as health and beauty, eating out, fitness, mechanical and so forth. It is also highly local, with tabs on the site to take you to seven cities with unique offers for that region.

 

But Healy is not a fan of the "trigger point" used by sites such as Groupon. These triggers require a certain number of buyers before anyone can get access to the deal on offer.

 

Healy thinks this is "gimmicky", as the trigger point is always low and always passed very quickly.

 

Dailydo.co.nz works on a simple commission structure. Users print out vouchers that they take to the retailer or service provider and Dailydo gets a commission on those sales.

 

Healy said there's no up-front cost to the advertiser and commissions are "flexible". Currently the Auckland site offers a full quota of seven deals a week, while the others are building towards that, he said.

 

Anyone offering services can get on the site, but Healy said it is important that the customer has a good experience.

 

The crew at Dailydo.co.nz have tried a number of things to build momentum, including using social networking, radio and print advertising. But the most effective strategy is to provide value, Healy said.

 

"We've learnt that the most important thing is to have really good deals," he said. "People will tell other people and do our social networking for us.

 

"Word-of-mouth is critical for us," he said.

 

Despite being the new kids on the block, Healy said the business went cash- flow positive in just two-and-a-half months. That said, now money is being put back into the business, to build its database.

 

There are a number of advantages for businesses trading through such deal sites.

 

Chris Drummond, of Motueka-based Anchorage Wines, has listed some of its products on 1-day.co.nz's offshoot 1-daycellar.co.nz. He said it's a good way to clear end-of-line products and to sell direct with prompt payment assured, at a time when the wine industry is struggling with glut and a high exchange rate impacting on exports.

 

It is also good marketing, building brand awareness and getting people to drink your product - and maybe come back for more.

 

Hamilton-based 1-day.co.nz and its offshoot sites is, at just three years old, the grand-daddy of New Zealand's one- day deal websites. Founder Luke Howard- Willis also expects a shakeout as some of the smaller and newer sites find the going tough. The major players will get bigger, he predicts, as customers have only so much time to spend with any given website.

 

Outwardly, the model looks easy and people have jumped into the game, but to get the volumes right is difficult. A few sites have already disappeared, he said.

 

Howard-Willis said Trade Me had created an environment where New Zealanders are now a lot more comfortable transacting online. That has helped create an environment for online models to be explored. Like DailyDo, 1-dayco.nz is now targeting services, for instance, an area where he expects group buying for discounts to be an effective offering.

 

Source - www.stuff.co.nz Article link http://www.stuff.co.nz/business/industries/4143715/Hysteria-drives-sales-on-one-day-websites

 

 

Growing number of NZ websites allow direct bank payments

 

If you're uncomfortable releasing your credit card details over the internet, or just want the ability to make payments from a current account, a growing number of websites are offering direct bank payments.

 

At? Deal A Day, Air New Zealand, JetStar and the Land Transport Authority, you can now pay for goods or services by directly accessing a bank account online.

 

The sites are able to offer an alternative to online credit card transactions by dint of the POLi online payment service created by Melbourne company Centricom.

 

Deal A Day's Dinesh Kaku said that the new POLi system allows any ANZ, BNZ, ASB, TSB, Kiwi Bank or Westpac customer to pay online quickly and securely through their own bank's online platform, making a direct payment from their cheque or savings account.

 

Air New Zealand added POLi support in May. JetStar followed in June.

 

"There is no need to enter credit card information, or worry about the security of the payment platform they're using," said Mr Kaku.

 

To pay with POLi, customer selects /'Internet Banking/' as their payment option and nominates a bank. Onscreen prompts assist the customer install the POLi browser (a one-time requirement), through which the transaction is completed. Payment is then debited immediately from the customer's account, the order confirmed, and the customer returned to the e-tailer's website. (See a video demo on Centricom's website? here.)

 

POLi supports Microsoft Internet Explorer and Mozilla Firefox for Windows, but not yet the Mac version of either browser. Mr Kaku said he's not sure when Mac support will arrive.

 

Through POLi, you complete a transaction with an e-commerce website by logging on to your bank, then selecting an account for payment. You're then returned to the e-tailer's website.

 

Source - www.nbr.co.nz Article link - http://www.nbr.co.nz/article/growing-number-nz-websites-allow-direct-bank-payments-106260

 

Online bargains saving New Zealanders money

 

Online discounted products website Dealaday.co.nz, which launched only four months ago, is celebrating providing New Zealand consumers with cheap deals on products at a time when they need them the most.

 

The 'Deal of the Day' appears every morning at 10am on the website, offering heavily discounted prices on one particular product or service for 24 hours. Products range from electronics, games, movie tickets, magazine subscriptions, jewellery, electronic accessories, and banking products to holidays.

 

Technological driven managing director of Dealaday.co.nz, Dinesh Kaku says the online site is simpler, sleeker and easier to use than competitor websites and puts discounted products in front of New Zealand buyers at just a click of a mouse.

 

Dealaday.co.nz also offers incentives by way of 'Deal a Day Dollars', unlike other websites.

 

"Customers can earn points through purchases made with us. For every $200 spent, one Deal a Day Dollar is earned which they may choose to spend on anything they like on the website. It's a fantastic incentive that keeps people coming back." Kaku said.

 

Dealaday.co.nz is working closely with New Zealand businesses in an effort to support local produce and service. Dinesh describes it as a win-win situation for all parties involved.

 

"The system works really well because it not only allows New Zealanders to pick up high quality products at a fraction of the cost, but it also helps local wholesalers move unwanted stock around quickly." Kaku said.

 

The Auckland based website run by Global Trade Fusion Limited saw a market gap for online discounts early last year, launching Dealaday.co.nz to help shoppers gain better deals from the comfort of their own homes.

 

"We realised that online discounts were absent in the market. The range of products we sell are so wide that we are able to please a huge demographic of the population which helps boost our website hit rate."

 

Dealaday.co.nz was acknowledged by renowned U.S website review company KillerStartups as a promising New Zealand business whose approach is a 'smart stunt that can yield very positive results'.

 

Kaku assures customers that their information, privacy and security is a high priority at Deal a Day.

 

"We credit our success and growth on our customers satisfaction with our company, our products' quality, and their personal purchasing experiences."

 

Source - www.btob.co.nz Article link : http://www.btob.co.nz/article/online-bargains-saving-new-zealanders-money