All across the globe websites are coming up with such group buying concepts and are able to give huge discounts on commodities, travel deals and services as they purchase in bulk for its users. Users of these websites can also enjoy a lavish lifestyle by enjoying a meal at a world class restaurant or by availing an exquisite travel deal at a dirt cheap price.

Group buying “offers products and services at significantly reduced prices on the condition that a minimum number of buyers would make the purchase”. A couple of websites have been able to make huge success in this area. Group on and Living social are to name a few.

Users of this website get hugely benefited from this concept of Buying or group buying because they have no obligation to personally know their group members and yet they are able to avail great discounts on commodities and services being purchased by a group.

Social networking sites play a very important role in bringing together people interested in such group deals. Individuals can spread the word around through such social networking sites that they are interested in a particular travel deal and that too absolutely free. After that all one has to do is join hands with people on a social buying website which is offering discount on the said travel package and make a purchase. Such travel deals on group buying websites are usually available in the form of a redeemable voucher. The state of Ontario USA however has put a ban on expiry dates of vouchers. Nevertheless the discount coupon from such sites come with an expiry date and has to be availed within a certain date.

A business which is planning to have a tie up with a social buying website to promote its products / services should take into consideration the following points before embarking upon the plan

1. Are they equipped enough to provide services in bulk?

2. Are the discounted services going to bring in returning Customers or one time customers?

3. What effect does this decision have on the brand identity or goodwill of the company?

4. Is this association apart of its long term or short term strategy of the company?

The concept of group buying has now spread across geographical boundaries and getting popular by the day but users should do a detailed research on such group buying websites before availing a discount or offer. So that they can avail the best possible deal