Here’s a super infographic on the pros’s and con’s of group-buy social commerce platforms from both a customer-focused perspective and a retailer perspective – from the team over at review site – SiteJabber. Smart accompanying article too, summarising the Rice University study on the effectiveness of group-buy platforms.
5 Hurdles for Group-Buy
- Impression among retailers that running group-buy promotions is not profitable
- Perception among consumers that group-buy deals encourage needless spending
- Idea among end-users that group-buy refunds are rare
- One bad experience and retailers don’t come back to the platform
- Deal constraints make buy-in tough for retailers (e.g. minimum 50% discount)