WHAT IS COMMUNITY GROUP BUYING (CGB)?

Community group buying integrates small orders from households in the community into a larger order. Merchants can deliver the goods in a unified manner, and then the consumers pick them up. By replacing express last-mile delivery, it greatly reduces the logistics cost.

Since social networks are the foundation for community group buying, customer acquisition costs are very low. The group buying approach for communities offers strong conversion and retention rates. Additionally, there is a greater variety of traffic acquisition channels.

Group buying is something that everybody talk about these days. Community group buying, sometimes referred to as collective buying or group buying, is a purchasing strategy where a number of people band together to buy a good or service at a reduced price. The purpose of community group buying is to use the group’s combined purchasing power to persuade suppliers to cut their pricing. Community group buying was first introduced in China, where it has long been a well-liked manner of buying. Since then, it has become more well-known in other parts of the world, such as the US and Europe.

As you know, one of the main advantages of group buying is that it gives people access to discounts that they might not otherwise be able to get. A small business owner, for instance, would not have the buying power to bargain for a discount on a bulk purchase of office supplies, but by participating in a community group buying program, they can get the same discounts as bigger enterprises.

The ability to buy goods and services that might not be offered in one’s immediate area is another advantage of community group buying.

Through a community group buying program, for instance, a group of people in a rural location might have access to goods and services from a major shop that aren’t offered there.There are several different types of community group buying programs. Some programs are run by major retailers and are available to the general public, while others are run by local organizations and are only available to members of that organization.

Coordination of the purchase of the good or service is one of the major difficulties in community group buying. All group members must agree to make the purchase of the good or service at the same time in order to be eligible for the discount. This can be difficult, especially for big groups or groups whose members are spread out across the nation.

Another ┬ábenefit is that the supply chain in China’s community group buying market is straightforward; without an intermediary, prices are lower. The group leader acts as a link between customers and the community group buying platform. Community group purchases are more cost-effective than traditional channels in terms of logistics, reduced inventory pressure, and sales effectiveness.

The group buying can be a potent tool for people and even small businesses wishing to secure savings on products and services, despite its drawbacks. Individuals and small companies can use their combined buying power to negotiate lower prices and gain access to goods and services that might not be offered in their immediate area by banding together.