To promote the online retailer Amazon’s daily deal site, AmazonLocal, the company is offering consumers half-off custom gift cards.
“Some folks, even if they’re Amazon customers, don’t know about us yet,” said AmazonLocal vice president Mike George. “This is going to draw a whole bunch of people to check us out.”
On Tuesday, consumers will be able to buy a $10 promotional gift card for $5. The cards can be used to buy any product from the wide inventory available on Amazon’s marketplace. When customers have made a selection, they can enter the gift card account information in the site’s virtual credit card terminal to complete the purchase.
This is the second time Amazon has run a daily deal selling half-price gift cards. In January 2011, the company sold roughly 1.4 million $20 gift cards on competitor site LivingSocial. The promotion was so popular that LivingSocial sold approximately 80 cards per second. Even though Amazon will lose money on the deal, it is betting the promotion will pay off through the word-of-mouth buzz it could generate.
Although the number of cards AmazonLocal will supply for the deal is unknown, the offering has the potential to generate a spike in gift card use on the site.Back To Blog