LetsBuyIt.com strikes Amex deal

LetsBuyIt.com, the co-buying website that came back from the brink of bankruptcy earlier this year, has signed a major marketing partnership with American Express.

The deal enables LetsBuyIt’s 1.2 million members to pay for their co-buy purchases using the American Express card. In return LetsBuyIt.com will have access to 3.7 million Amex members through the credit card company’s direct mail and online campaigns.

In February two-year-old LetsBuyIt realigned its co-buying business to focus on four key regions: the UK, France, Germany and Sweden, all of which will now accept Amex purchases.

The two companies hope to develop joint communications and targeted marketing campaigns across all four markets.

“Over the past two years we have created one of the leading Internet brands in Europe,” says LetsBuyIt.com UK managing director Sheila Farrell.

“It’s the strength of this brand and the loyalty of our customers that allows us to attract high profile suppliers and service providers such as Amex. Our aim is to create marketing programmes that build on these two strong brands to add value to our respective member communities.”

American Express claims its 51 million card holders have a higher average spend per transaction than any other payment method, including other cards. It also says Amex cardholders are more loyal to establishments that accept American Express and actively look for the American Express sign when shopping. Critics say this is because so many establishments do not accept Amex.

The company has recently begun targeting affluent younger consumers with its Blue card addition. It has also established close ties with a number of other websites, notably Amazon.com.

Hopes for LetsBuyIt’s survival have been boosted by the latest results from Priceline.com, the reverse auction specialist, which posted a smaller than expected loss and forecast profitability by the end of the year.

Both dot-coms are pioneering radical new consumer models which leverage the purchasing power of groups rather than individuals, and of high-speed transactions which take advantage of dynamic pricing.

LetsBuyIt announced a new cash injection last week of E25m (&£15.6m) from a New York-based venture capital company.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here