Groupon’s troubles just keep on piling up. As if it weren’t troubled enough already by a sagging stock price and its failure to turn a profit, today, eBay, the original internet e-commerce giant, started testing an online deals offering, which would compete directly with Groupon’s core offering – daily deals.
The new feature is called eBay Lifestyle Deals, and is being tested out in some urban areas like San Francisco, Los Angeles and Washington D.C.
Groupon already has tremendous competition in the space thanks to Google Offers and LivingSocial which is bankrolled by Amazon. While the daily deals space has yet to mature as a market, it is the next natural step for many e-commerce providers, since it is a nice way to improve sales and increase inventory turnover.
eBay already provided product deals, but is now also looking into deals on services, which could be even more lucrative, partnering with deal providers who arrange them with local businesses and merchants.
eBay is also looking to completely revamp its complete website to boost sales and modernize its brand image. It’ll be interesting to see how the daily deals wars play out after the entry of eBay.