Tuesday, 21 May 2013

Group buying websites leveraging the power of collective bargaining

It was around ten years ago when we have wirnessed the first ever Group buying concept being introduced by an e-commerce start-up called Mercata, This Start-up was healthily funded by Microsoft.

The concept was very simple with the product’s price falling down with every single web-shopper added, but with the course of time, the company had lost it’s good-run owing to the string emergence of the competitors like Amazon.com and others who were the giants even in those times.
Definition :
Group buying sites leverage the power of collective buying concepts, by offering the hot-pick of the day at a very low prices by nominating the minimum number of buyers to buy the product/service to avail the offer within a stipulated time-period.

Retrieval of the Group buying concept :

After few years Group buying concepts have seen their happy retrievals in the form of the Group buying script websites, like Groupon, Livingsocial and few many . And this sites have emerged to cater to the the needs of the budget-conscious consumers in these times of weak-economies by offering huge discounts in the name of deals and offers.

We can witness these websites offering huge discounts on the most wanted and hot pick items everyday, and leverage the power of discount sales immensely.

While such deals may be carried out in the light of closing-stock sales or the end-of season sales or it may be an attempt to boost the publicity for small businesses(which is the case on many occasions).

How it works?

When the subscribers get attracted to a particular product/service on any Group 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. Restaurants,
  2. Saloons,
  3. Men’s and women’s accessories,
  4. And now a days even on Travel hubs.

Top ten Group buying websites :

As of 2012 we can witness the below sites as the the ‘Top ten group buying’ websites all in their hierarchical order;
  1. LivingSocial
  2. Dealster
  3. BuyWithMe
  4. Groupon
  5. SocialBuy
  6. HomeRun
  7. DealOn
  8. TownHog
  9. MyDailyThread
  10. Yipit.
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