AmazonLocal breaks daily deals records with new offer

1 million gift cards in 17 hours

AmazonLocal claims to have sold 1 million Amazon gift cards in 17 hours, as part of a daily deal selling $10 gift cards for $5. At its peak, the deal sold 162,490 gift cards in one hour. This makes it the second-fastest deal in the history of the daily deals market, and the biggest revenue generator, according to Savvr.  As well as netting the company $5m, the sale is a boost for AmazonLocal, Amazon’s daily deals business, which is attempting to catch up with market leaders Groupon, LivingSocial and Google. According to Savvr analyst Tim Elliot, Amazon’s decision to sell discounted gift cards was roughly in line with the $5 it costs to acquire each new subscriber through traditional channels.

Amazon not only paid that amount, but they also acquired substantially more valuable subscribers: customers who are known to make purchases online and now these customers can place 1-click orders as well,” says Elliot.

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