Group Buying Sites: Blessing or Curse?March 28, 2012 — 1,300 views
The business world has forever been changed by group buying sites, and while some consumers believe they are a fad that will come and go, others suspect the model will be around in the foreseeable future.
Group buying platforms like Groupon and LivingSocial have developed a loyal following of consumers looking for great deals. However, are group buying sites a blessing or a curse?
In essence, these websites have a basic e-commerce business model but also benefit from a low overhead, no inventory, regular appeal and easy-to-use interfaces. It is no wonder consumers visit these websites daily to take advantage of new deals. In fact, according to eMarketer, 96.8 million adults will redeem an online coupon by 2013 - largely distributed by group buying sites.
Unfortunately, not every consumer enjoys the barrage of content thrown at them by these businesses. With the junk mail sent through the United States Postal Service (USPS), spam showing up in email accounts and posts clogging up social media profiles, 52 percent of customers in the U.S. feel overwhelmed by the proliferation of group buying deals, reports PriceGrabber.
The lifespan of group buying is still up for debate, but businesses and customers alike may want to take advantage of the offerings available on these popular web pages while the deals remain prevalent.