What if I told you that you could get discounts by shopping in groups? You would probably be very excited about it. This is the latest trend that has taken over the online shopping industry and it is called group shopping.
There are sites on the internet which offer deals to their customers and if a certain number of people agree to purchase that particular product them some amount is knocked off the main price. Using this, e-commerce sites have lured so many customers towards them.
New sales come up every day like the Amazon Great Indian Sale and consumers just go all in on them. Even a small discount or a voucher is enough to get tons of customers and in this age of social networking, it’s not at all difficult to get people to agree to buy something.
The discounts and the kind of shopping trends we have, have promoted sites like this. All in all it is a good way of bargain. Although, it is a very new concept which has been launched a while ago. It still has scope for more innovation which is why it has some perks and losses, both for the consumers buying the products from these sites and or the sellers as well who have taken to sell their product through this portal.
PERKS FOR THE CONSUMERS
Scope of Bargain
You can’t really bargain through the online shopping sites because there is no real identity that you are purchasing through. Group shopping sites give you the chance to bargain. They give you a chance to get things at a discounted price if you get them more customers. Living social has a deal which you can avail by referring 3 customers for a product. If all three of them buy it then you get that product for free. It is not actual bargaining but it is a type of bargaining.
The best part of group shopping is that you get discounts for wholesale shopping. Sites put up deals like they price a product for 100/- and if 10 customers agree to buy it at that price then they knock off 30/- for all of those 10 customers. This is just an example of how it works, deals like this are floating on the internet waiting for its buyers.
This is the best way to earn incentives. Sites offer credit points and reward if you get them buyers or the deal is successful. These incentives are redeemable and you can use them to shop more at the sites. You can earn more and more of these points by referring people or inviting them to get the deal. If one of them buys the deal, you get credit points for your purchase and their purchase as well.
A Network of Consumers
Consumers are scattered all over the place due to various online shopping sites. There are very few sites in this category so it has built a network of consumers. These consumers can interact and shop at the same time. Some sites even allow people to talk to other customers. This has built a single platform where all consumers have come together.
PERKS FOR THE SELLERS
A Great Platform for Marketing
There are brands which need vigorous marketing because of so many huge brands competing with them. Group shopping could be a good platform for them. Products in such categories can be sold through group shopping deals, compelling consumers to buy these products. The consumers will ultimately come to know about the product and the brand.
Even sellers get discounts if they promise the seller that they will sell a particular amount of merchandise. This increase the sales of the manufacturer so they give the seller wholesale discounts which the seller further passes on to the consumers. They still earn profits as not all of the discounts are passed on.
LOSSES FOR CONSUMERS
Discounts and deals have always attracted customers and if they see huge discounts, it’s like red light; they have to stop and shop. That’s what they do at the end. Even if something is not needed, they still buy it because it was on discount. The group shopping sites always offer discounts, so consumers are always buying things without thinking about their need. These things end up in the back closets and eat dust.
Limited Time Deals
All the deals that come up on group shopping sites are put up for a limited time period. They have an expiry date. If they don’t get the amount of customers they need then these deals end within no time. They are for such a limited time period that the buyers don’t get enough time to get access to the deal. At the end it all goes to waste and buyers are left disappointed.
Prices May Not Be LowEvery Time
As sellers pass on the discount from manufacturer, sometimes the manufacturer my not agree with the seller and they may not get any wholesale discounts. This may result in no discounts for the customers as well. So, getting discounts is not fixed. You may get a deal on a product one time but may not get it again. The price may be low or not, all depends on the circumstances.
Group shopping sites have increased price discrimination practices. You may get the same product from the market for a higher price and your friend may get it at a lower price. It happens in every sector and group shopping sites have increased these practices by offering products on low prices and attracting middle class customers towards it.
There are very limited products which the sellers are willing to sell on discounts. The variety of products available is very limited because of the reluctance of sellers. They don’t prefer to sell expensive products because it may hinder their sales and profits.
LOSSES FOR SELLERS
Not A Platform to Sell Expensive Goods
There are two types of consumers, who always look for discounts and the others who don’t care if the product is discounted or not. The products sold through group shopping sites are only the products which have a mediocre price. Some consumers always look for discounts so products that would cater to such consumers are sold here. If expensive products are sold like this then consumers who don’t buy products using discounts will also wait for the products to go on discounts., thus earning the seller losses.
NOT REALLY A SALES PLATFORM
Not Really A Sales Platform
It is better if the sellers don’t count on earning profits from here. It should considered more of a marketing platform like advertisement. Sellers may have to offer their products at a price which causes them losses for customers to buy them. They should consider this more like money spent on advertisement.
Group shopping is a great initiative and a very new concept to most of us. It will take some time for consumers to come around it. Consumers took time to get used to online shopping sites and this will take some time too. It is surely changing the shopping trends around the world and we are going into a very digital world which is connected globally through a small platform called internet. Group shopping is a great effort in that direction.