How to Harness the New Opportunities Created by Team Buying in 2022?
Buying in groups or teams is not a new concept. People have always taken advantage of buying at scale to negotiate for better prices or enable transactions that would not be viable without a group purchase approach. Recently, this concept has received a huge boost from technology that allows different types of consumers to purchase the same products simultaneously.
What is Team Buying?
Team buying is also known as collecting buying or group buying. This type of marketing involves products and services to a group of customers at significantly reduced prices on the condition that they meet the required meaning number to make the purchase.
Brief History of Team Buying
The concept of collective buying started in China, where it is known as TuĆ”n GĆ²u. E-commerce platforms such as Pinduoduo usually have a deal of the day, which kicks in when a set number of people agree to buy a product. Buyers then get a voucher to claim the discount from the retailer. The success of this concept is based on the ability of the eCommerce sites to negotiate deals with local merchants with the promise that they will deliver higher sales volume for better prices. Now, team buying has become a marketing strategy commonly used by eCommerce retailers and an important feature supported by certain platforms, including AllValue.
Essential Features of Team Buying
1. Merchants have to take hefty price cuts
Team buying is made possible by merchants offering significantly lower prices for their products. However, this feature benefits merchants because they can make more sales with less effort. Depending on which set of groups the buyers will choose, each set has different discount levels. The merchants can deduct a certain amount at each level and make higher sales. In this way, the merchant can take heft price cuts and make reasonably high profits.
When the buyers are placing orders in groups, the sales can scale up easily. Since the difficulties of buyer acquisition are reduced significantly, the cost of serving individuals is actually lowered as well. In other words, the merchant uses a small budget to acquire customers, since the customers themselves have already done the merchantās job by recruiting members and placing a joint order.
2. Merchants gain instant access to a whole new group of customers
The basic idea of team buying is that buyers come together to buy a certain product in bulk. In this regard, collective buying opportunities can attract more customers. In addition, merchants have access to a wider range of buyers who are also likely to become loyal customers.
If the merchant sells to individual, then the profit is low. Yet, selling to a group helps merchants to reach big, profitable businesses. By scaling the sales, merchants can seize parts of the market that competitors would have reached. Team buying helps gain market share and establishes the brand as a business ready to serve that market.
3. Caters to consumersā current shopping habits: buying in their Fragmented time
Team buying caters to current lifestyle of customers. Nowadays, more and more people find it hard to maintain work-life balance so that they have less time to shop offline. Team buying is one of the innovative ways of online shopping experience to allow them to shop at a lower price in minutes. Thatās why team buying is so attractive for people with fragmented time, and the intention to save money.
4. A better strategy to compete in the market
Making a large deal helps businesses to grow and improve their sales management. For instance, a brand could offer a voucher only valid on certain days of the week. This strategy is being offered to a group where the sales volume is likely to be high and marketing costs are lower. If an O2O business wants to expand its market, it can offer better deals to customers than competitors. Particularly, for any business that is only busy on weekends, it can help attract more customers during weekdays by creating a venue for customers to buy at significantly low prices.
How AllValue Facilitates Team Buying Business
Team buying is undoubtedly a beneficial business model. It allows businesses to reach the right customers at the time and grow market reach. AllValue can facilitate you to build a successful team selling business. On the one hand, AllValue offers you all the information and guidelines to start and scale your business. On the other hand, AllValue helps you manage the relationship with the groups and ensures a seamless process from creating offers, connecting to buyers, and making successful sales.
If you are interested in selling to groups, AllValue can offer you all the tools you need to create and manage your team buying campaigns. For example, you could simply add the feature of Group Buying to your online store by using AllValue. It is a free function for any AllValue user! Buyers are using group buying for product testing, seasonal promotions, and more. AllValueās Merchant Services provide you with much-needed support throughout a whole team buying experience.
