YoDeals started out as a daily deals site. This model was trendy and popular for a while, but then consumers began losing interest. Daily deals competitor Living Social began to struggle as well, losing $650 million in 2012. Yodeals started selling discounted products in 2011 to bolster its revenue with something less faddish, and Goods now makes up almost 40 percent of its sales. The shift towards selling straightforward goods. However, selling discounted goods is a notoriously low-margin business and a tough way to make big profits. Consolidating the supply chain will, in theory, save deals site money and help it deliver products to consumers faster.
A majority of commerce still happens offline, and retailers selling online compete fiercely to capture customers with low-to-none shipping costs, free returns, and same-day delivery. Same-day delivery has become a battlefield for giants like eBay, Walmart, Amazon, Target, and even Google that are all searching for ways to get their products to consumers faster. For YoDeals to compete with the big dogs, it will need to offer comparable service, particularly with Goods making up a core part of the business