Groupon Disappoints 40% of Retailers

A study of retailers using Groupon found 66 percent of the 150 merchants saying it was a profitable exercise, while 32 percent said their Groupon campaigns were unprofitable, the Wall Street Journal reports.

Forty percent of the respondents said they would not run such a promotion again, the study by Rice University’s  Jesse H. Jones Graduate School of Business found.

The point is that any mobile, web or transaction service can work well only when retail partners find the application or service profitable, easy to use and desired by end user customers. So far, Groupon might need to work on that a bit.