Get $10 for $5: AmazonLocal Expands Groupon-Style Deals

Amazon is making a move on the vastly popular deal-of-the-day business model, pioneered by Groupon and LivingSocial, so it is selling $10 gift cards for $5 on Tuesday on its AmazonLocal.com.
AmazonLocal is the online retail giant’s local-deals site, which has expanded to 90 cities in 26 states and Washington, D.C. since its low-profile launch last June.
The gift cards are good for any Amazon.com purchase.
“Some folks, even if they’re Amazon customers, don’t know about us yet,” AmazonLocal vice president Mike George told CNN Money. “This is going to draw a whole bunch of people to check us out.”
Amazon may be the largest online retailer, but the biggest deals promoter is Groupon, which went public in November and has had the “first-one-there” advantage in the local deals marketplace.
Amazon wants to leverage its retailing dominance to take on Groupon. But the daily discount arena is getting crowded. Google, the dominant search engine, is testing “Google Offers,” while Facebook and others are making a move into the online daily bargains space.
Amazon will sell a limited number of the discounted gift cards. Last year, LivingSocial sold about 1.4 million of $10-for-$20 Amazon gift cards.

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