Last week came a notice that Kijiji would stop its Daily Deal service in Canada. A service that uses the Teamsave platform. This is not a surprise and has been a long time coming. what does surprise me is that Kijiji did not bother to sell their database to a larger deals provider. Perhaps they did but others were not interested. Kijiji deals is the first high profile name in the Deals business in Canada to move on in 2013.
I would like to reiterate that the Daily Deals business is a hard one. It is an expensive proposition that requires effective use of a large email database, a solid inventory of merchant suppliers, a productive operational team and healthy bank account. Even with very large audiences such as those that Kijiji could obtain, operating a successful deals site is not guaranteed. All those bloggers, journalists and business folks who continue to state that it is easy to get in and operate a daily deal business obviously do not know of what they speak. It is certainly easy to put up a web site…for ANY online ecommerce site. The hard part, in most businesses, is getting and keeping customers.
The following is an excerpt sent by Kijiji Deals last week:
We are writing you today to provide an update on Daily Deals, and to let you know that this is no longer an active feature being offered by Kijiji Canada.
As you may be aware, Daily Deals was operated as a joint service between Kijiji Canada and a partner known as TeamSave. Over the last year, we’ve seen a significant number of member inquiries and a slowdown in the popularity of Daily Deals, which prompted us to reexamine how we offer this service.
The discontinuance of Daily Deals and wind down of that feature follows significant analysis. This change was taken to ensure that we focus our commitments on features that offer superior ongoing Kijiji experiences.