"After testing Deals for four months, we've decided to end our Deals product in the coming weeks," the company said on Friday in a statement emailed to Reuters.
"We think there is a lot of power in a social approach to driving people into local businesses," Facebook added in the statement. "We've learned a lot from our test and we'll continue to evaluate how to best serve local businesses."
With this decision, one of the most potentially dangerous competitors to Groupon has been taken out of the game. In April, Exciting Commerce reported on how Facebook was well positioned in this arena with their combination of newsfeed, fanpage and email (“What Facebook is Doing Right With Social Deals”).
"Facebook never put its full might behind Deals. It initially injected stories into the news feed asking users to sign up for the service, and later promoted the pre-paid offers with emails and real estate in the sidebar."
"In past reviews of the product, we criticized Deals regarding the quality of the experiences offered , the sometimes shallow discounts, and the way the experiences were ptiched to users.
Had Facebook subsidized businesses to provide deeper discounts on attractive experiences, and came up with a more compelling design for the Deals-browsing app, the results of the tests might have been different."
Marshall Kirkpatrick was one of the many who saw a “Groupon Killer” in Facebook Deals, and he summarizes on ReadWriteWeb:
"That's a lesson that any business should remember in a time of rapid change: the fundamentals and execution still matter, a lot."
- What Facebook is Doing Right With Social Deals
- Live Shopping: Twitter Ends Their @earlybird Campaign
- Facebook As Social Commerce Engine?
Originally posted in German by Jochen Krisch and Marcel Weiss, adapted for excitingcommerce.com by Jason Soo.