A Strategic Way To Offer Products And Services At A Very High Discounts

Collective buying, also known as Group buying, offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase.

Collective buying for the online shops

Of-late Collective buying websites are paving off the major retail-outlet’s discount claim’s. The Collective buying websites offer ‘Deal of the day’ or ‘the best deal offers’ and attract a bunch of buyers and letting the deal to get tipped only when it gets the set number of buyers. These buyers will be provided with a discount coupon which they can use to avail discount at physical outlets or use these coupon codes to slash and avail the discounts online.

To day we can witness more than 1000′s of online Collective buying websites, and few best among the lot are;

1. Groupon,
2. Livingsocial,
3. Gilt city(Gilt Collective’s),
4. Dealster,
5. SocialBuy,
6. Dealon.

Groupon

Groupon features a daily deal on the best stuff to do, see, eat, and buy in more than 565 cities around the world. Groupon has established a strangle hold over many shoppers by guarantying them for a promised crowd(buyers).
Today we have seen hundreds of sites mimicing the Groupon website, and these products call themselves as the Groupon Clones.

How it works?

When the subscribers get attracted to a particular product/service on any Collective buying website, then he/she will make the payment details online and then await the Deal to get tipped by getting the set buyers for the Deal, within the stipulated period of time. And once the Deal gets tipped all the buyers will get their products at the promised discount prices.

You can expect the Groupdeal offers for the major products like;

1. Restaurant's,
2. Saloons,
3. Men’s and women’s accessories,
4. And now a days even on Travel hubs.

Power-pact facts

An industry research report tracking the Australian Group-buying sector has expected the Collective-buying sales to reach $1billion by 2016. Even so, the predicted growth will depend on continued innovation, and in particular on adapting daily deals and Collective-buying.
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• According to independent data provider, Groupon’s gross billings for October 2011 increased 1.5% to $147 million from $144 million in September 2011.
• In 2011, LivingSocial completed a $400 million round of funding valuing LivingSocial at $3 billion.