CouponTrade.com Cuts Out $2.4 Million for Used Marketplace
CouponTrade.com has secured $2.4 million in capital to develop an online marketplace where consumers can buy and sell unwanted gift cards and daily deals.
But both companies are following the same premise that offline activities, like couponing, are moving online.
In particular, CouponTrade is targeting the secondary market, where consumers can go to trade both daily deal vouchers from providers, such as Groupon and LivingSocial, and gift cards from retailers, such as Macy’s, Walmart and Old Navy, so they don’t go to waste. So far, it lists inventory for 15 U.S. markets.
The secondary market is already fairly competitive, and in general, they are a bit rogue. They are not working with the major deal providers to prevent fraud, and instead rely on cash-back guarantees, which are often negotiated through payment providers, like PayPal, if a voucher ends up being used or not legitimate.
Others in the space include DealsGoRound, CoupRecoup, CityPockets and Lifesta. Since the company deals in selling unwanted gift cards as well, it is also competing against fairly established players such as PlasticJungle.
CouponTrade said investors include Jeff Cantalupo of Listen, a consulting firm in Chicago, and the Bousis family, who owns and operates the Chicago grocery chain, Cermak Fresh Market.