Groupon has begun to launch the e-commerce group purchase service to the UK users, so it started a more direct competition with Amazon and eBay.

Groupon is promoting group purchase goods whose discounts are more than 80% to the UK consumers. When the users buy a group purchase transaction, they can receive a code. As long as they enter the code in the corresponding shopping site, they can enjoy discounts when they do online shopping.

The most revenue of Groupon comes from the daily group purchase transactions of local restaurants, hotels and other businesse. The company may also enhance the revenue growth by providing vouchers of e-commerce sites. As Groupon has 115 million email subscribers, so they could attract a group of uses that have accustomed to shopping on Amazon and eBay.

Compared with Amazon and eBay, their benefit is the proficiency to get access to to more than 100 million users a day. Only with a large number of subscribers, they can promote sales of 500 million to 1 billion U.S. dollars. The effect seems to be very good. I estimate if they consider the time is ripe, the service will be ushered in to the U.S.

Groupon was the biggest I.P.O. since Google's in 2004, which means there are plenty of investors who believe its easy-to-copy business model can stand up to competitors like Google Offers, the Amazon-backed Living Social, and hundreds of locally oriented upstarts. They were not bothered when Groupon's founders Andrew Mason and Eric Lefkofsky ran afoul of Securities and Exchange Commission rules against hyping I.P.O. stocks.

Groupon's CEO Andrew Mason expressed his excitement on was on the early success of the British e-commerce business on August 25 in an internal memo. He said: "We only spent one day in the UK to sell $ 2 million worth of mattresses!"

The company's main competitor in the United States LivingSocial is also exploring new group purchase mode. LivingSocial plans to cooperate with Whole Foods to launch a group purchase that can have a nationwide coverage. Only using $ 10, you can pay for $ 20 of groceries. The analyst said that this is the first group purchase company that launched a nationwide group purchase of groceries.