LivingSocial’s partnership with Amazon is paying off nicely today.LivingSocial is offering users the chance to pay $10 for a $20 Amazon gift card. So far, 155,127 people have signed up, which is $1.5 million in gross sales for Living Social.
The deal is just getting started, though. There’s over 22 hours to go in the deal. We could easily see the number of people buying this deal quadruple or more before it’s all said and done, which means this deal could generate over $6 million in sales.
This deal is about much more than revenue, though. It’s about new customers for LivingSocial.
There’s a chance (and we’re just speculating) that Amazon is subsidizing this deal, not charging Living Social a thing. This way Living Social gets a zillion new sign ups and starts to eat into Groupon’s lead.
Why would Amazon do that? It invested $175 million in LivingSocial last month, and wants to see that investment work out.