What Is Group Buying?

Group purchase, the English name is Group purchase, which means group shopping, refers to consumers who know or do not know unite to increase the ability to negotiate with merchants in order to obtain the best price for shopping. According to the principle of small profits but quick turnover, merchants can offer discounts on group purchases below retail prices and high-quality services that cannot be purchased separately. Group buying, as an emerging e-commerce model, enhances the bargaining power of users and merchants through consumer groups, professional group buying websites, and merchant group buying, etc., and greatly obtains product concessions, which has caused consumers and manufacturers in the industry, Even capital market concerns.

Group buy

So that everyone can find more favorable group purchases, so that consumers who do not know each other can enjoy high-quality and low-cost services.

First, there is a price advantage for customers who don't have much time or some more demanding customers (such customers have fewer on the forum). Not every customer spends a lot of time learning knowledge, nor does every customer know that it is cheaper to buy things there. Many customers even only go to the mall, so the price of group purchase is indeed cheaper than the mall. There are some customers visiting the market, many customers cannot be found in the market, and there are many and complicated businesses. If you find a good one, it may be cheaper. If you do nt find a good one, is nt it a bit expensive for a long time? However, for this type of customer, there is still a principle. Don't be blind when buying groups. You do nt even know what you want to pay. You must know what you want, at least.

Second, for customers who learn knowledge on the Internet or have some time to understand the market, the meaning is that you will find cheap and good service providers in the building materials market. It is unlikely that you will find every variety. If you can't find it, you can buy it if you can't find it. Although it is not necessarily cheap, it is not expensive. Maybe the price is the same as the special price.

3. For products that have a fixed brand, and this brand has basically no distributors, but only self-operated stores, then group buying is also useful. Because you have already fixed the brand, it s all good or bad, but only the self-operated store, and you ca nt find a dealer to bargain, even if you bargain for the group purchase price, it will take a lot of energy.

4. Every day, when faced with all kinds of cuisines, they are often blocked by their prices. For a restaurant with a beautiful environment and stylish taste, it is a pity that there are not enough consumers. At this time,

Group buying is divided into group and group. The group leader is called the group leader, who is the party that organizes the group purchase, and the group member is called the group member, and is the party participating in the group purchase. In addition to the leader and members, there are also parties who provide goods, called merchants.

The first is the head of the delegation:

1. The head of the group finds the products to start the group, determines the number of people required for the group purchase, the product brand, model, and the price of the group purchase.

2. Call members of the group. You can find information on the Internet, and you can also find the surrounding ones.

In the future, self-service group buying services will appear, allowing local merchants to create a

The representative study of group buying classification abroad is the "The highway matrix" classification method proposed by Schotanus & Telgen (2005). In their model, group buying is regarded as a form of horizontal cooperation between independent organizations in order to obtain corresponding benefits. According to this classification method, group buying can be divided into 5 categories. The so-called "highway matrix" has two dimensions. The first dimension is "Intensiveness for the members", which is the degree of influence of group purchase cooperation on the business activities and development strategies of cooperative members. The second dimension is "Number of different activities for the initiative", that is, the strength of the level of cooperation. The degree ranges from "occasional cooperation" to "continuous cooperation through different activities" within the same framework. According to the above two dimensions ["degree of influence on members", "number of different activities"], the "highway matrix" method distinguishes group buying into fleets (

The benefits of group purchase are mainly reflected in two aspects: first, the group purchase price is lower than the lowest retail price in the product market; second, the product quality and service can be effectively guaranteed.

The reason why group buying can bring the above benefits: First, participating in group buying can effectively reduce consumers'

1, shopping will not choose, always leave regretful friends;

2. Worried about individual consumption and not getting the friends who should be guaranteed after sale;

3. Friends who are worried about buying fake and shoddy products;

4, working class, friends with little money who are preparing, immediately or have begun renovation;

5. Friends who do not know the market price, do not know how to select materials, or do not like to visit the market;

6, not to bargain, do not like bargaining, disdain

With the development of the Internet, group purchase websites have sprung up in 2010 and are at the forefront of e-commerce online shopping. Because group purchase is cheap, product styles are diversified. Many netizens choose to buy online and pay for goods online. The payment methods supported by the group purchase website are generally the following:

The relatively mature profit models in group buying websites include the following six:

1. Direct sales of goods: In the name of "group purchase", you can directly log in to the product information on the website for direct sales. The source of goods here can also be purchased by yourself or cooperated with the merchant on behalf of the sales to directly obtain the profit from the sale of the goods. Direct selling of goods is the traditional way to achieve basic profitability in website operations.

2. Event rebates: The website serves as an intermediate bridge between merchants and buyers, and organizes buyers with common needs to collectively purchase from merchants, and afterwards, merchants pay profit returns to the site, which is a common "rebate" form in everyone's life. Do not underestimate this "rebate", it is one of the most likely ways to become your biggest gain. Group purchases are as small as daily necessities, as large as electrical appliances, building materials, decoration, automobiles, real estate, etc. If you successfully organize a large purchase group, such as a car group or a house group, the profit return of the merchant in one event is as small as tens of thousands. It's hundreds of thousands or more. Some large group buying websites claim that there are thousands of people buying groups or even 10,000 people buying groups, and the profit returns generated by such large-scale purchases can be imagined.

3. Merchant exhibitions: Merchant exhibition exchange meetings can be held from time to time. Merchants can take this opportunity to promote and test new products. They can communicate with customers face-to-face, accept consultations and orders, and understand customer needs and suggestions. The website collects booth fees from the merchants to get a profit.

4. Advertising services: In addition to the regional characteristics of group-purchasing websites, his audience is generally people who have the ability to spend, purchase, and want to buy. For businesses, they have precise positioning, clear goals, and low cost. The best platform for advertising.

5. Selling membership cards: "IP membership" is a common way to highlight the "honorable status" of users. It is very popular among young people, especially students. Group purchase websites can provide users with a form of membership card to enhance their "identity". The website can provide cardholders with lower prices and more considerate services, allowing cardholders to conduct "group purchases" directly at partner merchants' physical stores. ".

6. Sub-station joining: When the website develops a certain influence, it is already doing investment invitation for you. At this time, it can provide authorization to the franchisee to set up a sub-station, provide the franchisee with a network platform, operating experience, and share website brands. While gaining the franchise fee, it has also expanded its influence. The operation and profit model of the group purchase website is not limited to the above six types. According to its own development status, environmental characteristics, and innovation, it can generate more profit methods, such as providing richer value-added services for merchants and buyers.