Although the idea of collective buying is not a new idea, The article, How “Collective Buying is Taking Off on an Online Updraft” describes why collective buying is gaining so much momentum and seeing such success in the digital marketplace today. It also discusses this e-model’s influence on the Solar Industry.
The collective (group) buying e-model that is utilized by such companies as Groupon, is seeing immense amounts of success in today’s marketplace. Although this model was tested by a handful of companies in the 1990’s, it never gained much success due to the fact that the Internet was still a novelty and not many individuals were purchasing online. However, today this model has become extremely successful and works especially well for customer acquisition.
However, what is new and exciting about this e-model is the endless possibilities in new markets. A year ago, a San Francisco start-up called One Block Off the Grid (IBOG) applied this e-model of collective buying to the residential solar industry. According to the company’s CEO, group buying works well for this industry because it makes people realize that solar installations are not only for rich environmentalists, and it makes them much more accessible for the masses. The company has seen much success in its first year and has already signed over 600 homeowners for solar installations. Since this model can be applied to any big-ticket home items, it’s clear that this model of business is only scratching the surface of its potential.
“How Collective Buying is Taking off on an Online Updraft.” Business Day Edition 22/02/2010. 1-3. ProQuest Central. Web. 2 Mar 2011. .
Filed under: Internet Marketing