Group Buying Websites Operation Model Analyzing

Group buying websites can grow that fast depend on all three parties related gained mutual benefit. For merchant, they can have more customer visiting, gain reputation and save advertising fee by the way, they can also make profit if they have more visitor even with low selling price; For consumers, they can asking more discount if they gather together and speak with one voice, they can save a lot of money and time by doing this, they can even get better treatment when they have quality issue about the products. For the group buying websites, they can get a commission from merchant, usually about10%of profitability. So basically we can see this business model is mutual benefit. Based on this we can see a bright future for group buying websites.This article was trying to compare the difference of business model between aboard and domestic group buying websites. Especially by analyzing Lashou.com’s specific situation and trying to find the advantage and disadvantage and then find to solution.This article started from the foundation and development of group buying websites, made a deep research and analyzing to this business model, trying to find the theory and basis for this, this article also made a survey on its present situation and distinguishing feature, also with SWOT analyzing, then we can see the problems and challenges they are facing now. we take Lashou.com for example in this article to study and analyze, after a overall and comprehensive research, we can have a clear picture of its advantage and disadvantage, then we can make full use of its strengthen and try to avoid its weakness, finally we pointed out a proposal that they need to be creative and innovative, they need gain customer’s trust and nurture their loyalty to the websites, raise their income by expand the new business and finally can make profit, after that these group buying websites can have a bright future.