Group Buying Sites Continue to Gain Popularity: 5 Group Buying Ecommerce Sites You Need to Know

•  
•  
• Share
•  
• Email

June 10, 2010
By the ZippyCart Ecommerce Software Reviews Content Team

The group buying craze has been going strong in 2010, as more sites try and jump into the game to capture their share of the online dollars spent on group buys of products and services. This ecommerce concept puts the power in the hands of the buyers, as their collective buying power is what allows these group buying sites to offer up such great deals. Typically services and product are offered for 40%-60% off normal pricing, which causes a rush of people each day taking advantage of the limited deals available. Not all of the group buying sites have deals in every city, as of now they focus on the big cities first, typically giving the most attention to the city in which the site is based. If you wonder how local merchants can offer such great deals on their products, it is because the deals expire after a year so people occasionally forget to take advantage of a coupon if they buy too many. This type of offering also draws in customers who are new to a business, thus creating more regular customers who will come back and purchase services or products for full price. Below are 5 great group buying sites for you to review, and possibly sign up if you see a lot of great deals in your city.

Groupon – This is one of the first group buying sites which started the buzz, and now is one of the most well funded group buying site looking to expand into more markets so they can continue to lead the way. Almost every week day Groupon posts a new deal for a product or service in all major U.S. cities, and these deals can be purchased by you or for a friend or family member. When a deal first goes live, it needs to hit a certain tipping point (number of purchases) before the deal is active. If it is not popular among consumers, then it will not get activated and your credit card is not charged.

Tippr – This site is new on the scene, launching in February 2010 in Seattle, Washington. Tippr comes from the software company Kashless, and is quickly gaining in popularity as they expand into more major U.S. cities to offer up great group buying deals. Despite the site being new, they already have many patents around their technology which is sure to get investors excited to push this company to the forefront of the group buying pack.

LivingSocial – This group buying site is coming up quick, after raising $14 million in a series C round in late April and $25 million in a series B earlier in the year. This money is helping LivingSocial with rapid expansion plans into more U.S. markets. They even have plans to go hyperlocal, starting in Seattle where people can get group buying deals by neighborhood. Definitely a top group buying site to watch, and worth signing up if available in your city.

SocialBuy – This site is very aggressive in that they currently let users earn $10 in SocialBucks for every friend referred. These SocialBucks can only be used for other deals on the site, with the primary focus being Los Angeles and San Diego. This is a great site to use if you live in Southern California, and stay tuned as SocialBuy is expanding to more U.S. cities soon.

TownHog – Another new group buying site based out of San Francisco California, is gaining local popularity as people flock to the site daily to see what the new amazing deal is for them to possibly buy. Another cool feature that TownHog and other group buying sites have is a recommendation feature, so you can request businesses you like to offer a deal.