Market Overview

Earny: A New App That Could Make Waiting For Discounts Obsolete

Share:
Earny: A New App That Could Make Waiting For Discounts Obsolete

Waiting until after Christmas for a really good deal?

You may not need to do that anymore with Earny, a startup that has raised $11.5 million and calls itself a consumer advocate that makes sure shoppers don’t overpay.

The Santa Monica-based startup leverages its partnerships with 35 top retailers — including Nordstrom, Inc. (NYSE: JWN), Costco Wholesale Corporation (NASDAQ: COST), Amazon.com, Inc. (NASDAQ: AMZN), Walmart Stores (NYSE: WMT), Nike Inc (NYSE: NKE) and Macy’s Inc (NYSE: M) — to protect consumers from missing out savings if an item's price drops within 30-90 days after a purchase is made.

Earny works with retailers to give consumers the price difference if an item they bought drops in cost, taking a 25-percent commission if shoppers receive money back. 

A Win-Win For Retailers, Consumers 

“Retailers have price-adjustment policies in place; they are trying to make sure you shop at their store and not window shop. If you walk into Best Buy Co Inc (NYSE: BBY) and the price is cheaper on Amazon, Best Buy does not want to lose the sale,” Earny Co-Founder Dori Yona told Benzinga.

“What we are doing is helping consumers automate that process, since most prices change within a few hours." 

Earny's business plan is to facilitate a win-win situation: retailers ensure that consumers won't use their store as a showroom, consumers won’t have to think twice about purchasing an item that may soon go on sale.

The app is linked to a customer's email address, so when purchases are made and receipts are emailed, the company is immediately informed of a purchase and begins to track the market to see if the price is cheaper elsewhere or drops in price over time.

Earny goes back over 90 days of purchases when an account is made, and Yona said some users get refunds the moment they sign up.

“We have had users sign up and get a few hundred dollars back on purchases they made." 

Expanding Beyond Retail 

Earny is exploring adding more verticals in 2019 to offer purchase protection on travel, hotel flights, mobile plans and insurance.

“We are able to constantly monitor different methods and determine the best real price of [a user's] purchase. Our goal is for Earny to be there behind the scenes to protect consumers from any purchase they make," Yona said. 

Related Links:

Forrester Research Analyst: Yes, There Is Still Growth In Physical Retail

Asos Shares Destroyed By 'Unprecedented' Level Of Discounting

Photo courtesy of Earny. 

Posted-In: Dori Yona EarnyNews Startups Exclusives Interview Best of Benzinga

 

Related Articles (AMZN + BBY)

View Comments and Join the Discussion!

Coal For Christmas On Wall Street: S&P 500 Enters Bear Territory

Mid-Day Market Update: Dow Down Over 400 Points; Crude Oil Falls 2.7%