Dive Brief:

• Groupon’s Q2 earnings are behind analyst estimates amid a strategy of moving from being a discount site to a true e-commerce site. Q1 sales rose 26% and beat expectations, but Q2 doesn’t look so bright to analysts.

• The company this year bought web marketplace Ticket Monster Inc. and fashion site Ideeli and has launched Groupon Basics, a warehouse-style e-commerce site.

• For its part, the company said there’s work to be done, but the transition to a physical goods marketplace is well underway. The company is investing heavily in advertising to let everyone know they can now shop for actual things on its sites.

Dive Insight:

Taking on Amazon, which Groupon is essentially trying to do, is an ambitious effort. Its sales of discount coupons has emerged as a less-than-stellar strategy for growth. But the company appears to be doing all the right things — adding to its offerings and advertising its new services.