LivingSocial just launched an eCommerce product offering, LivingSocial Shop, “a virtual destination for members to explore unique, relevant items from brands with a story to share.”
They’ve been experimenting with the product for weeks in Cincinnati, and based on Yipit Data, this looks to be a nearly $200 million annual revenue business:
- According to our data, LivingSocial tested 15 product offers in Cincinnati in June, and earned $39,000 in revenue
- We estimate Cincinnati represents 0.5% of LivingSocial’s subscriber base, based on population sizes and the US markets LivingSocial serves
- We assume LivingSocial only doubles that rate to 30 offers per month (today, they are running 17)
- Assuming a nationwide rollout, LivingSocial Shop already represents a $187 million annual revenue business
As an email based service with a history of curating unique offers and experiences, LivingSocial offering eCommerce products is a logical next step. This is already a sizable business for Groupon, not to mention the entire flash offer industry.
Jim Moran is co-founder of Yipit, whose Daily Deal Data Product provides past offer detail and competitive intelligence to the Daily Deal Industry, investors, and the media.
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