Discounts, coupons and coupons are old but effective marketing tools that are successfully used to promote new products and services in both online and offline commerce. Group buying, on the other hand, is a relevantly new but refreshing approach aimed primarily at online users. And, apparently, it works.

What does “group purchase” mean? Does it mean you have to get your friends together to buy something? No, definitely not. But a minimum number of purchases must be reached to activate the offer. People are required to meet that minimum and are given a certain percentage discount. Typically, each promotion is activated if only enough people sign up, which encourages the viral sharing of individual offers. If the minimum registration is not met, the deal will not take place.

Most group shopping sites are geolocated and offer deals for specific cities; such as trips and visits, discounts in hotels and restaurants, discounts on fitness, shopping, cosmetics and beauty products, etc.

Advantages of using a group buying site:

• It is an innovative idea that will boost the business you own.
• Great deals for customers. Encouraged by discounts offered on group buying sites, users are likely to become customers.
• Quick promotion. Newsletter subscriptions are used by group buying sites to quickly announce new offers.
• Big discounts are highly appreciated by people. They will be drawn to your brand and possibly become loyal customers.
• You can potentially win repeat customers (depending on your sphere of business and the quality you provide).
• The traffic is targeted and the business receives valuable customers.
• The popularity of those sites is growing exponentially. It is affordable to have your products listed on a group buying site.

Although, there can also be some disadvantages:

• You are supposed to provide a huge discount on your products.
• Some site commissions are quite high (up to 50% of the price).
• To keep customers flowing and engaging, you need to offer new promotions on a regular basis, which can be exhausting for small businesses.
• Customers will always be looking for new deals and better discounts.

In conclusion, group buying is a fantastic business start-up opportunity and a thriving opportunity to wisely promote products, attract customers and generally build awareness of your business.

And if you’re not just getting started but you already have some satisfied customers, it can be of great benefit because they could bring friends to turn to your customers making sure everyone gets the discount you offer.