New Startup: Swappa
Whilst the group buying and daily deals markets are not as strong as they used be [all round, still some particular companies going very strong because they have strong sustainable business models] one new Aussie company is looking to capitalise on a huge problem within this space. Unused daily deals.
Swappa is a new market place that allows people to resell their unwanted or almost expired daily deals, in a market that is tipped to reach revenue’s of 600 million dollars this year, the estimate of deals not redeemed is a staggering 35% or 210 million dollars worth!
“The idea is to have a place where people can sell their unwanted deals to a market of hungry buyers, or pick up a deal that they might have missed out on. Another bonus? Pending the seller’s urgency, there is also the opportunity to purchase a deal significantly cheaper than the original one, representing an enormous overall discount” says cofounder Nick Power.
Selling a deal is quick and easy. All a seller needs to do is forward their daily deal voucher confirmation email to firstname.lastname@example.org , enter the sale price in the ‘subject’ field, and Swappa will do the rest. You don’t even need to register with Swappa until your first deal sells.
Power says “The company’s goal is to create a market for, and transact on, the majority of all daily deal resales, and in doing so become synonymous with daily deal resales in Australia”.
I think the concept is an interesting one, ever since Spreets sold to Yahoo!7 and Scoopon received significant investment the Australian market has been littered with new daily deal sites in every niche, and people are still building them [please stop] I like the fact that Swappa plays off something that is extremely common in society – “Buyers Regret” to get the supply and “Bargain Hunters” to get the money through the door.
As long as the daily deal sites cooperate with these Melbourne lads they should be able to grow a significant base of sellers and buyers, however if the cooperation ceases at any stage for any number of reasons they are stuffed, especially if the major players decide they want a significant chunk of the action.