RetailMeNot Inc (SALE) Can Learn From its Competitors

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But the company is increasingly focusing on digital content in an effort to compete with Netflix, Inc. (NASDAQ:NFLX) and Hulu. With net income declining in its first quarter, revenue increased 22%, Amazon.com, Inc. (NASDAQ:AMZN) continues to experience trouble with profitability due to its work to undercut big box retailers.

Through Amazon Local, the company has a chance to add a little extra income to its bottom line. Like Groupon, Amazon Local allows merchants to advertise deals through its service in the form of coupons. Amazon then promotes the offers to its large base of e-mail subscribers in that merchant’s region.

Along with its other advertising options, Amazon Local helps build relationships in a way that is a win-win for both the company and local businesses. But as such a small part of its overall operations, Amazon Local seems to be more of an afterthought. Because of this, it’s hard to pin Amazon’s future success on its coupon segment.

Foolish final thoughts

As it begins a new phase of its history, RetailMeNot Inc (NASDAQ:SALE) must keep an eye on its competition, while continuing to be innovative in each of its offerings. For online discount retailers, future success relies on their ability to leverage partnerships with businesses that bring in the best deals for consumers. Amazon has already mastered this, and Groupon seems to be figuring it out as well. If RetailMeNot can continue to attract millions of unique visitors each month, the stock will definitely be one to watch.

The article RetailMeNot Can Learn From its Competitors originally appeared on Fool.com and is written by Stephanie Faris.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool recommends Amazon.com. The Motley Fool owns shares of Amazon.com. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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