Group buying websites

Group buying websites offer products and services at huge discounts. Whether you’re into spa treatments or spring break vacations, there’s a deal for you somewhere. Once the minimum number of buyers has made a purchase you can expect to see some pretty heavy discounts.

Group buying websites explained

What are group buying websites?

Group buying websites are also known as daily deal websites, because most of the deals available are offered for a time-limited period. So if the minimum number of deals is reached and it’s before the deal deadline - the deal is on! Look for a group buying website with a lot of variety and different deals each day so you’re sure to find something you like.

How does it work?

The website offers a discount deal or deals every day from a local or national business. Small-print gives you the details about where the deal is located and any conditions the deal comes with. If you want to take the deal you pay for it with your credit card. If enough people also pay for the deal, the deal is activated, your card is charged and you receive a coupon to print out or show to the business on your mobile device.

Key issues

Groupon – the leading group buying site – is now considered to be the fastest growing website of all time. Group buying websites have grown massively in popularity over the last few years and now most cities and towns have linked discounts. Although group buying websites help you to save money, it’s worth remembering that they also encourage you to spend more so manage your account like you would an online shopping website.

If you are a retailer or merchant you can offer your products and services to help gain access to a new set of potential long term customers. Access to a new group of customers is certainly a positive, but on the downside you will have to take a fairly heavy price cut. There have also been reports of businesses being overwhelmed by the response to a deal and struggling to meet the demand over a short period of time.