Merchants and Shoppers Sour on Daily Deal Sites

By STEPHANIE CLIFFORD and CLAIRE CAIN MILLER
August 17, 2012

As their e-mail in-boxes filled with daily deal offers from Web sites 
like Groupon, Lea Pische and Edwin Hermawan, a pizzeria waitress and 
a former lawyer living on the Lower East Side, finally decided to buy 
one: a discounted Skillshare class on how to start a business.

Their business plan? It was a service that would unsubscribe people 
from all those daily deal e-mails.

Three months after its introduction, UnsubscribeDeals.com has 7,800 
unsubscribers, a number that nearly doubled in the last month. Ms. 
Pische and Mr. Hermawan tapped into deal fatigue, a malady that has 
been afflicting the small businesses that offer daily deals and is 
now hitting consumers too.

Daily deal services - like Groupon, LivingSocial and Google Offers - 
took off because they seemed to offer something for everyone: small 
businesses got a novel way to bring new customers in the door, 
shoppers got a discount and the deal providers got a large cut of 
every sale.

But signs of deal fatigue are everywhere, raising questions about 
whether Groupon and its competitors can continue their hyper-growth.

In the last six months of 2011, 798 daily deal sites shut down, 
according to Daily Deal Media, which researches the industry.

...

http://www.nytimes.com/2012/08/18/technology/merchants-and-shoppers-sour-on-daily-deal-sites-like-groupon.html

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