What makes the Online Group Buying Sites boosting up E-commerce Business in Asia

 

Online group buying sites offer discounts on various products and services, over a limited amount of time. If more people buy the deal, then all the customers will be receive discount on the price. Otherwise, the purchases made by the members are refunded and nobody gets any discount. As a result, these group deal sites have become very popular and successful for all parties involved. Most online group buying sites offer short-term daily deals that discount products and services by more than 50% off and therefore usually sell out of such offerings within just a few hours. Supported by the group buying sites, E-commerce market is growing at a rapid pace in Asia, and today we are going to discuss about what is the reasons makes the Online Group Buying sites boosting up E-commerce Business in Asia in such a short period time.

The first reason I should said is the power of social media sites. When it comes to the rise of online group buying and E-Commerce, social media has a huge role to play. I believe everyone unless have a social media’s account and these people can easily see the daily deals in the social media sites. For example, you’re surfing your Facebook account, and I believe that you can see your friends are posting some awesome deals in their wall and this can make you feel interest and somehow will lead you to click on the deals. 

Besides that, the online group buying sites will feature their ads on Facebook or other social media portals, and even send out Twitter updates to promote their deals because they know is easy to reach the mass audience since everyone is using internet nowadays. Attracted by the discounts being offered, consumers will tend to refer them to their friends, family members and other people they are connected to on social networking sites, and that enables the whole viral marketing, needed  by group buying sites to sell products and expand their business.

Na, H. (2011, May 16). Group-buying companies find trust is not for sale. Retrieved March 17, 2012, from Access: http://www.chinadaily.com.cn/cndy/2011-05/16/content_12513894.htm