Groupon signs deal with eBay

CHICAGO — Groupon, a shopping website that offers a daily deal on local goods, services and cultural events, announced a national affiliate incentive agreement with online marketplace, eBay.

Starting today, visitors to eBay (http://groupon.ebay.com) will find daily updated deals from Groupon featured throughout the site. Members of the eBay Bucks Rewards Program who purchase Groupon deals from the eBay site earn 5 percent of the purchase price back in eBay Bucks. Groupon is currently live in more than 100 North American markets and running nearly 200 deals per day; eBay will use geolocation to determine the closest deal for each user.

“This affiliation blends the unbeatable deals and unique experiences of Groupon with the depth and breadth of merchandise on eBay,” Sean Smyth, vice president of Business Development at Groupon, said in a statement. “Now, shoppers can connect with the best local businesses in their area with the bonus of earning eBay Bucks.”

Using the principles of collective buying, Groupon negotiates unprecedented discounts with popular businesses. Groupon subscribers get free daily e-mails alerting them to the deals. The deals are activated only when a minimum number of people agree to buy, encouraging subscribers to share the promotion with family and friends. By guaranteeing a large number of new customers, Groupon has created a powerful new marketing vehicle for local merchants. This innovative approach to e-commerce has brought millions of dollars in new revenue to local businesses while saving more than $600 million for subscribers across North America.