For starting a website based on group buying concept!
The origin of group buying concept
Group buying, also known as collective buying, offers products and services at significantly
reduced prices on the condition that a minimum number of buyers would make the purchase.
Origins of group buying can be traced to China where team buying was executed to get
discount prices from retailer when a large group of people were willing to buy the same item.
In recent time, group buying websites have emerged as a major player in online shopping
business. Typically, these websites feature a ―Daily deal script‖, with the deal kicking in once
a set number of people agree to buy the product or service. Buyers then print off a voucher to
claim their discount at the retailer. Many of the group-buying sites work by negotiating deals
with local merchants and promising to deliver crowds in exchange for discounts.
How it works?
The Daily deal business model works by offering retailers the opportunity to market
discounted services or products directly to the customers of the deal company. The deal
company takes a profit from the deals sold through direct marketing efforts such as email. It
benefits both retailers and consumers as retailers build brand loyalty and while quickly
moving surplus inventory.
If subscribers to a discount website are tempted by a discount offer, they enter their payment
details online and wait. Once a minimum number of people sign up for the same offer, the
deal is confirmed and a voucher is sent to their inboxes. Shops, restaurants and other retailers
that partner with these discount websites have to take hefty price cuts. But it means they have
instant access to a whole new group of customers.
How it works?
The online group buying market is fragmented among hundreds of smaller players
worldwide. The model has little barriers to entry and has gained attention from shoppers and
businesses alike globally…According to SmartMoney, by August 2010, there were more than
500 group-buying sites worldwide, including local sites that cater only to a single city in
Once the minimum number of deals have been sold via the website, customers’ credit cards
are charged and the deal is delivered as an electronic voucher, redeemable at the retailer or
service provider’s location. The promotional value of the vouchers purchased from deal of
the day websites typically expire after a certain period, but maintain the value at which they
were paid for.
Common products sold include apparel, restaurant and bars offers, salon and spa services,
tickets to special events, health and fitness products, travel promotions, and medical services.
Economies of scale
Save an hefty dollar through Group buying
Economies of scale here generally refers to the degree of savings that you can make specially
from your retail purchases. Take the above example where the buyers availing an discount of
$25 on the $50 T-shirt, which is just about 50% discount on the T-shirt, where if a buyer tries
to purchase the T-shirt single handedly would be paying $50, so the power of Group buying
mainly helps in saving the money excessively and exclusively.
Groupon is the daily deal websites that serves many major international markets, offering one
coupon per day in each these markets. You can’t go anywhere online these days without
spotting a Groupon ad. It’s theory as we all know – the social features of its deep-discount
offers for local merchants — a certain size group had to sign up in order for the deal to be
―on‖ has been the reason for the huge success.
Back in 2010 Groupon was expected to make $800m this year – and in a market with an
awareness of just 10%, imagine what their future earnings could be like. Groupon have
announced that in 2011 they will be gunning for a turnover of $1.5bn, which tells you
something about the growth of the group buying industry when the market leader is targeting
nearly 100% growth in a year, and with so much more to offer and provide you can just
imagine it’s scale-growth for 2012 and the upcoming years.
If you are currently looking to start your own group buying website then take a look at this
Group Deal is Agriya’s group buying software. The daily deal website that brings you deals
prevailing in your city right in your inbox each day. It could be deep discounts on food,
entertainment, holiday or things to buy. For over a year, Agriya has been selling the
GroupDeal software and enabling entrepreneurs and businesses around the world to build
highly profitable group buying websites.
Why suggest this product?
Multiple Coupon Options,
Now You Can Manage The Currencies From All Over The World,
Android and iPhone Applications Launched For GroupDeal,
Intuitive admin area.
Groupon Clone, revenue generating and user friendly product is developed by Agriya, We are
pioneers in Clone scripts and web development. We have built more than 300 websites. We
give end to end solution for building a website, from the designing to coding we take care of
it. Our services extend from online business to mobile application business as well. We have
developed fantastic products like Freelancer Clone, Etsy Clone, 99Designs clone, airbnb