Group Buying Sites

Discount, bargain, sale–I have yet to encounter someone whose attention was not grabbed by these words. Now imagine those words being applied to a culture where shopping is very much a part of, where transport routes are determined by which branch of shopping mall the next stop is (e.g. FX route SM Megamall to SM North). It is utter madness, shopping madness. It’s surprising why the number of group buying sites in the Philippines is only increasing geometrically and not exponentially. Since August 2010 almost 40 group buying sites have sprung in the country offering daily discount coupons and vouchers for a wide variety of products and services, everything from cupcakes to a 4-days/3-night accommodation at a five star resort in some island you only know because of Google Earth.

How do online group buying websites/discount coupons site work?

Most online group buying and/or discount coupon website offers one or a number of new deal(s) every day, these deals will be available for purchase within a specified amount of time. Group buying sites use the power of bulk-, collective-, or group-buying to negotiate big discounts with retailers, hotels, services providers, etc. The group buying website and merchants will agree on a minimum number of confirmed buyers for a certain deal and the deal will become “active” or made available if the minimum number of confirmed buyers are achieved, if not, then the deal will not push through and no one will be charged with their purchase.

Deals end when the coupons are sold out or the time limit expires. After paying for the purchase, coupons are then emailed to the buyer so they can print them out and redeem at the retailers’ or present during delivery (although there are some sites that are implementing paperless coupons/discount vouchers). You can sign up to receive daily offers in your email inbox, Facebook and/or Twitter accounts.

Social buying

Group buying websites rely heavily on social media networks such as Facebook and Twitter to drive sales. The size of their subscriber database – the bigger the better – helps the website operators negotiate discounts with various retailers who may otherwise spend on media advertising. Some websites also give credits to encourage shoppers to spread the word to their network and encourage purchases (quite a prevalent practice in the Philippines given the popularity of social networks in the country).

Are group buying discounts really for real?

Group buying sites (in the Philippines at least), for the most part, really do offer great bargain, but as always, consumers should be mindful of the conditions attached to the big discounts. Though most sites allow refunds and/or cancellations, they are often possible only at a very limited time (i.e. cancellations should be made before the deal ends and refunds are allowed only under certain premises). Overall, as long as the consumer remain wise, while being blinded by the sparkle that are huge discounts, group buying can really be rewarding.