What is Group Buying?
Group buying is also called social buying, crowd buying, collective or cooperative buying whereby several people jointly pour in their orders to avail of the wholesale price on a particular product or service. The products and services offered on group buying sites are called group deals and are priced considerably lower than the regular price. The rate of discount taken off from the original price is called group discount and usually ranges from 20% to 75%. Few sites offer at least 50% group discount and may go up to 100% (free) for promotional deals.
Several criteria must be met in order to avail the group buying discount. Buyers can place an order for the deal if:
1. The group deal is "on". The deal is said to be ON when the minimum required buyers set for that particular deal is met. This is commonly called tipping point. Once the number of buyers for a group deal is greater than or equal to the group deal's tipping point, all existing and subsequent bidders who paid for the deal will be issued a discount coupon or voucher. This voucher can then be presented to the merchant for redemption.
2. The group deal is active. A group buying deal is active if the current date is within the date range of the deal's validity (i.e. The current date must be greater than or equal to the deal's starting date and not more than its end date.) A group deal that will start at a future date or those that are already past its end date is said to be Inactive.
3. The group deal is within order limit. Like any other businesses, group buying sites ensure that the amount of orders merchants take in must be within what their resources could allow. Most group buying sites and merchants agree upon a certain order limit for a particular deal. Order limit is somewhat in reversed context with tipping point.
What is a group buying merchant?
The merchant is the business offering the group buying deal through there site. They are often referred to as group buying partners or simply "partners". Merchants set the pricing, discount rates, purchase limits, terms, bookings and reservations and are responsible for rendering the products and/or services to group buyers upon redemption of coupons and vouchers.
How is group buying site works?
1. Group buying merchants or establishments agree to offer customers a specific product or service at a discounted rate if the group buying website can generate more than the specified minimum number of sales chosen by the merchant.
2. Once the minimum number of sales is reached, the deal becomes activated (Deal is ON) and all the customers that signed up for the deal becomes eligible. If the minimum number of orders was not reached, the deal is cancelled and no one will be able to take advantage of the deal.
3. Eligible customers settle their purchased deal through different payment methods available per group buying site. Customers, however, who have already settled their purchase before the deal was cancelled will receive a reversal of their payment via credits (with equal cash value that will be used for future transaction in the group buying site) or no charge at all.
4. Customers will then receive a notification via email confirming his payment with a printable voucher or coupon that will be used to redeem the deal with the merchant. As a customer, the first step is to sign up and register at the group buying websites to be able to receive email alerts of the daily deals and access the deals online.
Some Popular Group Buying Sites in the Philippines
Group buying is also called social buying, crowd buying, collective or cooperative buying whereby several people jointly pour in their orders to avail of the wholesale price on a particular product or service. The products and services offered on group buying sites are called group deals and are priced considerably lower than the regular price. The rate of discount taken off from the original price is called group discount and usually ranges from 20% to 75%. Few sites offer at least 50% group discount and may go up to 100% (free) for promotional deals.
Several criteria must be met in order to avail the group buying discount. Buyers can place an order for the deal if:
1. The group deal is "on". The deal is said to be ON when the minimum required buyers set for that particular deal is met. This is commonly called tipping point. Once the number of buyers for a group deal is greater than or equal to the group deal's tipping point, all existing and subsequent bidders who paid for the deal will be issued a discount coupon or voucher. This voucher can then be presented to the merchant for redemption.
2. The group deal is active. A group buying deal is active if the current date is within the date range of the deal's validity (i.e. The current date must be greater than or equal to the deal's starting date and not more than its end date.) A group deal that will start at a future date or those that are already past its end date is said to be Inactive.
3. The group deal is within order limit. Like any other businesses, group buying sites ensure that the amount of orders merchants take in must be within what their resources could allow. Most group buying sites and merchants agree upon a certain order limit for a particular deal. Order limit is somewhat in reversed context with tipping point.
What is a group buying merchant?
The merchant is the business offering the group buying deal through there site. They are often referred to as group buying partners or simply "partners". Merchants set the pricing, discount rates, purchase limits, terms, bookings and reservations and are responsible for rendering the products and/or services to group buyers upon redemption of coupons and vouchers.
How is group buying site works?
1. Group buying merchants or establishments agree to offer customers a specific product or service at a discounted rate if the group buying website can generate more than the specified minimum number of sales chosen by the merchant.
2. Once the minimum number of sales is reached, the deal becomes activated (Deal is ON) and all the customers that signed up for the deal becomes eligible. If the minimum number of orders was not reached, the deal is cancelled and no one will be able to take advantage of the deal.
3. Eligible customers settle their purchased deal through different payment methods available per group buying site. Customers, however, who have already settled their purchase before the deal was cancelled will receive a reversal of their payment via credits (with equal cash value that will be used for future transaction in the group buying site) or no charge at all.
4. Customers will then receive a notification via email confirming his payment with a printable voucher or coupon that will be used to redeem the deal with the merchant. As a customer, the first step is to sign up and register at the group buying websites to be able to receive email alerts of the daily deals and access the deals online.
Some Popular Group Buying Sites in the Philippines
| Ensogo Philippines  | Ensogo, derived from ENtertain, SOcial, and GO. Originated in Thailand and started the expansion and set-up in the Philippines on July 2010. Ensogo is an international group-buying site which has deals in Metro Manila, Cebu and Davao. By June 2011, Ensogo officially joined the the LivingSocial family. |
Payment Options: Pay at Ensogo office or at 7 Eleven, Credit card, PayPal, BancNet, Bank deposit to BPI, Banco De Oro and Metrobank
Website: http://www.ensogo.com.ph/
FB Page: https://www.facebook.com/LivingSocialPH
Twitter: https://twitter.com/LivingSocial_PH
Website: http://www.ensogo.com.ph/
FB Page: https://www.facebook.com/LivingSocialPH
Twitter: https://twitter.com/LivingSocial_PH
| CashCash Pinoy  | Pioneered the Flash Sales Market in The Philippines in 2010, and rapidly became one of the most famous local ecommerce website. |
Payment Options: Pay via Credit Card, Debit Card, Paypal, GCash, Bank Deposit, SM Deposit, 7-Eleven, eGift Card or CashCashPinoy credits
Website: http://www.cashcashpinoy.com/
FB Page: https://www.facebook.com/CashCashPinoy
Twitter: https://twitter.com/CashCashPinoy
Website: http://www.cashcashpinoy.com/
FB Page: https://www.facebook.com/CashCashPinoy
Twitter: https://twitter.com/CashCashPinoy
| MetroDeal  | Launched in early 2011, MetroDeal is the undisputed market leader in Southeast Asia when it comes to discount vouchers. It features the best deals on the best things to do, see, eat, and buy across the Philippines. |
Payment Options: Pay via Credit Card, Debit Card, Bank Deposit (BDO, BPI, Chinabank, EastWest, Metrobank, PNB, RCBC, Unionbank, UCPB or LBC), Paypal, MetroDeal credits
Website: http://www.metrodeal.com/
FB Page: https://www.facebook.com/MetroDeal
Twitter: https://twitter.com/metrodeal
Website: http://www.metrodeal.com/
FB Page: https://www.facebook.com/MetroDeal
Twitter: https://twitter.com/metrodeal
| Groupon Philippines  | Launched in November 2008 in the USA, and in the Philippines in February 2011, Groupon Philippines features daily deals on the best things to do, see, eat, and buy in select cities across the Philippines. The Groupon Philippines website is owned and operated by Beeconomic Philippines Inc. (Groupon Philippines) |
Payment Options: Pay via Credit Card, Debit Card, Bank Deposit (BDO, BPI, EastWest, RCBC, Unionbank), Cebuana Lhuillier Pawnshop, LBC Money Transfer, Groupon credits
Website: http://www.groupon.ph/
FB Page: https://www.facebook.com/groupon.philippines
Twitter: https://twitter.com/grouponph
Website: http://www.groupon.ph/
FB Page: https://www.facebook.com/groupon.philippines
Twitter: https://twitter.com/grouponph
| Deal Grocer  | Deal Grocer features exclusive offers on the best products and services from top merchants across cities in Asia. All transactions are based on USD rates. |
Payment Options: Pay via Credit Card, Debit Card, Local Bank Deposits, Paypal, Deal Grocer credits
Website: https://dealgrocer.com/
FB Page: https://www.facebook.com/dealgrocer
Twitter: https://twitter.com/dealgrocerph
Website: https://dealgrocer.com/
FB Page: https://www.facebook.com/dealgrocer
Twitter: https://twitter.com/dealgrocerph
I will post a separate list of active group buying sites in the Philippines.
Credits to astigtayo.com and manilashopper.com.
Credits to astigtayo.com and manilashopper.com.
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