It all began with Spirals. Last December a friend (let's disguise her under the name Katrina Sy) told me that a Spirals buffet promo was selling at half off online. I found out that the deal was offered on a group buying website. Thus began my beautfiul relationship with the online market.
Group buying has been around for ages. The concept is pretty simple. Buyers group together to purchase from one seller in order to drive the seller's price down. The seller becomes willing to discount his selling price because of the number of purchasers interested. Now the dynamic wouldn't be the same if the same number of people went to the seller individually instead of as one group. Why? Because when the buyers transact separately then the seller would have no guarantee as to the final total buyers he would have. In group buying, the seller is assured of the number of sales he will successfully transact. This certain number of sales incentivizes the seller and in fact gives him basis to drop his prices.
It's interesting how entrepreneurs have used the online market to promote group buying. By pandering wares online, more buyers can join the "group" transacting for the particular service or product. It was a stroke of genius. Sellers could now access a greater range and variety of buyers. Sellers didn't have to keep running surveys to identify people with like interests and coax them into signing up for group buying. Now, people only had to click a button to both identify them as having a like interest and to signify their inclusion in the group purchase.
Maricris L. Real
Entry #17
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