Understanding Merchant Graduation

The Merchant Graduation program is an automatic process on Goods Marketplace that rewards high-performing merchants with greater sales potential. 

It is Groupon's highest priority to maximize customer experience, and we expect our merchants to place an emphasis on offering attentive service and quality products. Merchants must demonstrate their ability to perform at a consistently excellent level before we can allow them operate at higher volumes.


Sales Thresholds


Every account on the Groupon Marketplace is assigned a specific threshold based on sales volume and operational standards. By default any new merchant signing up on the Marketplace is initiated as a Level 1 merchant, and has to mature to a higher level through strong performance.


Every account has a unique cycle start time and end. These cycles are based on when a first unit was sold on the Marketplace, when an account was suspended, or when an account was unsuspended. When any of these events occur, your 30 day sales cycle will automatically be reset.


Below you will find each Merchant Level and its corresponding details:

Level 1 - Maximum of 100 units sold or $1,000 in sales in a 30 day cycle

Level 2 - Maximum of 200 units sold or $5,000 in sales in a 30 day cycle

Level 3 - Maximum of 2,500 units sold or $25,000 in sales in a 30 day cycle

Level 4 - Maximum of 12,500 units sold or $125,000 in sales in a 30 day cycle

Level 5 - Uncapped sales limits.



Threshold Suspensions


If a merchant reaches their respective sales threshold in this 30 day cycle, their account activity will automatically be suspended temporarily while our team evaluates their performance. During this performance review, merchants will be unable to receive new orders or create new products. Until activity is restored, the expectation is for all merchants to ship all open orders, ensure all customer tickets are answered, and maintain all other regular duties of their merchant account.

The performance review process generally takes 30 days to complete. However, merchants can expedite the review process by fulfilling the following requirements, then sustaining them for 4 to 8 consecutive days:

  • all orders have been marked "Delivered" (not "Shipped"), 
  • all customer tickets have been marked resolved 

Following Performance Review


Once your performance review is complete, your account will either be: reinstated at its current level, promoted to the next level, relegated to a lower level, or remain suspended due to performance well below our merchant standards. Regardless of decision, your account will be emailed in order to inform you of your status.

Related Support Articles

Understanding Your Merchant Scorecard

How Scorecard Impacts Graduation

Viewing Merchant Scorecard