Groupon will stop selling physical goods for good, this coming year

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Groupon will no longer sell physical stuff like toys, beauty products, clothing, electronics, or household items, the company announced on Tuesday. Instead, the deals site will go back to focusing on experiences after a lackluster financial quarter where revenue fell 23%.

“We believe our plan to exit goods will allow us to dedicate the focus and resources necessary to build a winning position as the purchase of experiences continues to migrate online,” Groupon CEO Rich Williams said in a statement.

CHICAGO, IL – JUNE 10: The Groupon logo is engraved in a glass office partition in the company’s international headquarters on June 10, 2011 in Chicago, Illinois. Groupon, a local e-commerce marketplace that connects merchants and consumers by offering goods and services at a discount, announced June 2 that it had filed with the Securities and Exchange Commission for a proposed initial public offering of its Class A common stock. The company, launched in Chicago in November 2008 now markets products and services in 43 countries around the world. (Photo by Scott Olson/Getty Images)

The decision to stop selling physical products comes as the company realized it was competing in a saturated market dominated by giant retailers like Amazon, Walmart, and eBay. Consumers just didn’t think of Groupon as the place to go to buy clothes and accessories, even if prices were a bit better.

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