Group Buying Tips: How to Set Up Group Buying in the Right Way?
Behind every successful eCommerce, startup is strategic planning and flawless execution. And one of the numerous considerations business owners face is the decision to cater to a mass market or a niched one.
Irrespective of the target demographic an eCommerce brand goes after, marketing is always a hurdle that requires surmounting. But what about a scenario when final consumers do the marketing to gain products at a lower price point while the business owner focuses on other relevant aspects of growing the startup, creating a win-win situation.
That is what Group Buying is all about. And in this post, we introduce the concept of Group Buying and actionable steps that eCommerce brands can take to get it working.
How Does Group Buying Work?
Group Buying or community Group Buying is an eCommerce model that is rapidly gaining prominence for many reasons. The model involves a group of people (in a community or otherwise) coming together to purchase products (usually groceries) in large amounts to lower the unit costs and take advantage of bulk savings.
Using social messaging platforms like Telegram, WhatsApp, or WeChat, one individual (a community leader) can coordinate several hundreds of individuals to purchase products they would all be required in bulk and develop robust buying and strategic pickups/delivery schedules creating a win-win-win for the parties.
Community leaders gain commissions for coordinating orders, end consumers benefit from significant savings on products, and eCommerce businesses make bulk sales and also cut down on their logistics and delivery costs. Everyone goes home happy in this eCommerce model.
Group Buying works using social commerce, and we can paint a clear description of what really goes on in this model.
- A Group leader coordinates a social group and constantly adds members in the community to the group.
- Relevant products with bulk savings are collated.
- Order placement in bulk amounts for delivery at a single collection point goes live.
- Group leader organizes last-mile delivery or pickups.
- The group leader also serves as a conveyor for instances of conflicts and issues, which can then be escalated to the eCommerce platform.
Setting Up your eCommerce Brand for Group Buying.
Harnessing the potentials of group buying looks a lot easier on paper, especially from the perspective of eCommerce brands. But most often than not, eCommerce developers fail because of poor execution or negligence of vital steps. These stakeholders can use this simple step-by-step guide to integrate Group Buying into their platforms.
- Select your target location
Getting the best out of Group Buying requires eCommerce brands to narrow the geographical location they want to cater to. Brands must identify Key Opinion Leaders (KOL) who can act as group leaders and sway community opinion. But doing this requires extensive market research to reveal consumer behavioral patterns and preferences of the specific locale.
- Choose the right eCommerce platform.
Group buying can't take place without an eCommerce platform. Therefore, brands must ensure that they not only choose the right eCommerce platform but platform should also be optimized for the average consumer in terms of functionalities and responsiveness.
- Set up your online store
Brands must also ensure that the platform is eCommerce ready. From product listings to payment processing and everything in-between that could foster increased patronage.
- Choose a good logistics/delivery partner
Getting products to end-consumer is the fulfilling act of eCommerce, which a reliable logistics partner can handle with ease. And with Group buying, it is made a lot easier as last-mile delivery takes a back seat for the prevalent single location drop-offs.
- Promote the products online
Taking full advantage of Group buying requires promotion online across all channels. From running optimized ads, influencer campaigns, or posting across social media, eCommerce brands must choose an eCommerce website platform like AllValue that caters to the diverse needs and requirements involved in reaching a wider audience.
For eCommerce brands looking to scale and stay competitive, the emerging trend of Group buying seems like a viable strategy to adopt. But it is not enough to pay lip service to Group buying. eCommerce brands must ensure that their platforms are equipped with social commerce functions in order to take full advantage of what this emerging trend has to offer.
AllValue caters to the needs of eCommerce brands by providing stakeholders with all the social commerce they need to thrive. From website creation to analytics, advert campaigns, and even influencer marketing programs. Onboarding Group Buying with AllValue becomes easy and straightforward for all eCommerce stakeholders. For more information about AllValue, visit the website and get started on your free 30-day trial offering today.