A new way to innovate e-commerce - earn money by buying in groups!

When I was talking with a friend last week, I came up with some new ideas. One of them is based on group buying and is already being tested, so I would like to share it with you for your reference.

What is the innovation of group buying?

In fact, there are many ways to play group buying on the market, such as Pinduoduo’s ordinary group, the village chief’s flash group, and the tiered group.

These group purchases all have one thing in common, which is that they are cheap.

But there is a small drawback, that is, only those who clearly want to buy will initiate a group purchase.

If one is not interested in the product, even if he has the ability to spread by fission, he will not share it and will not be able to profit from it.

So, I have three ideas:

1. Make group buying more interesting

Everyone knows that in e-commerce, there are promotions and flash sales of various products every day. Some are limited, and sometimes the price of the flash sale is even negative profit, just to attract a wave of users.

Usually, when a product is put on a flash sale channel, it’s over to whoever gets it first, and there is almost no fission element involved.

So how can we give other people the opportunity to participate in the flash sale?

I think the group lottery method can be incorporated as one of the channel gameplays.

2. Benefit group buyers

In the past, after users participated in group buying, they did not receive any benefits except for the products.

So I hope to give users some other rewards after they successfully participate in group buying, such as points or lucky draws.

3. Benefit the initiator

As the initiator of a group purchase, who is able to organize two or three people to successfully participate in the group purchase through payment, we should reward him for his sharing behavior and ability to appeal.

Allow those who do not intend to buy to also earn commissions because of their recommended transactions.

Three ways to earn money from group buying

So based on the above ideas of rewards and fission, we have come up with some ideas for the product. I call the whole gameplay - making money by group buying.

The literal understanding is that you can make money by initiating/participating in group shopping.

In the past, when people heard about group buying, they thought about saving money or spending money. But group buying can help people save money and make money at the same time.

1. Lottery team

Introduction to the gameplay: Group buying is set up for those products that are temporarily on sale or in limited quantities, but it is a form of group buying where multiple people buy in and only one person wins.

It is similar to when we grab Moutai, draw house numbers, or license plate numbers. Users can participate in it, but there is also uncertainty about their luck.

What is better than just doing flash sales? I think there are four points:

One is that everyone has the opportunity to participate and wait for the prize draw.

The second is to prevent some cheats, instead of selling out in seconds after the sale starts.

Thirdly, some fission has occurred. Flash sales are purely activation activities, while group buying belongs to fission activities.

Fourthly, users who fail to successfully grab the tickets can enjoy commissions.

Why do users who don’t successfully join a group get commission?

Because successful commodity transactions themselves have profit margins, users who facilitate the transaction will be given cash rewards.

Of course, if the profit is not enough, you can use limited-time coupons instead to convert the transaction.

2. Group purchase

Introduction to the gameplay: If it is not a limited lottery group, but a regular multi-person group.

Then some points and coupons can be given to those who successfully participate in the group purchase.

Therefore, we can set up a points area in the mall where users can redeem goods using their points.

In addition, some coupons can be given to users who successfully join the group. The coupons can be special coupons, single product coupons, no-threshold coupons, etc.

3. Earn money by buying in groups

Introduction to the game: In order to encourage more people to share the group-buying products, as long as the group-buying is successful, the initiator or the first participant can get a commission.

a. Benefits to group buyers

A user may not buy the product himself, but can share the group purchase of a certain product. As long as the group purchase is successful, the initiator can receive a cash reward.

There are two ways to get rewards here. One is to enjoy a cash reward, and the other is to enjoy multiple rewards based on the number of people in the group.

For example, if three people participate in a group purchase of a box of tissue paper at 30 yuan, and each person is rewarded 2 yuan, the reward for the group of three is 6 yuan. Or just follow the one-time reward.

2. The first group buyers benefit

If a user is both the initiator and a participant in a group purchase, then the user can enjoy the commission after the group purchase is successful.

But the prerequisite is that the commission of a group can only be rewarded to one person, either the initiator or the first person to participate in the group.

3. Many people benefit

The only way that multiple people can participate in dividend rebates is the first type I mentioned earlier, the lottery group.

For example, five people participate in a lottery for a certain product at the same time. Although only one person succeeds in joining the group, the other four people actually play a very important role in promoting and sharing the product.

So if there is any commission, the commission for that product can be distributed to other participating users.

The specific commission distribution is determined based on the number of people in the lottery group and the profit.

4 tips for making money from group buying

At present, the group-buying and earning gameplay is still in its infancy. For some villagers who want to try it, I would like to give a few suggestions here.

1. Group buying must be successful

Nowadays, many people who do group buying fall into a misunderstanding, that is, they will get their money back if the group buying fails.

But everyone must deeply understand that isn’t the ultimate goal of e-commerce to make users pay?

User payment is the most difficult and core part of all transactions. If a user is willing to pay, it indicates at least two points.

First, consumers trust this platform

Second, there is an urgent need for this product

If the group purchase fails and you refund the money to the user, it will only create two negative impressions on the user.

One is that not many people seem to use this platform, and no one has successfully formed a group for such a cheap product.

Secondly, such a cheap product cannot be purchased without group buying. You have to invite your own friends and forward and share it, but still can’t buy it, which will be disappointing.

Therefore, refunding the fees when a group purchase fails actually greatly dampens users' desire to consume.

Therefore, the correct approach is to help users complete group buying no matter what, and leave the opportunity for refund to the users themselves.

Of course, if you want to achieve 100% group formation, there will be a component of robots participating in the group, so the commission design of the initiator needs attention.

Or you can set up a special area or certain products and mark them as 100% sure to win when you group buy! This will ensure the rationality of commission distribution.

2. Points can be redeemed

There are many platforms that set up points redemption malls which are just for show and have absolutely no value.

They thought they had set up some big prizes to attract users, but in fact users just assumed it was a trick.

Therefore, whether it is the threshold setting or the redeemed goods, users must be given a real opportunity to participate in points redemption.

Do not shift the responsibility of risk control to users, which would create a high threshold for user participation.

3. 9.9 Group Buying Area

In order to encourage new users to participate in group buying and make money, you can set up some special areas for group buying products with low prices and high frequency.

For example, in the regular 99 special event, users can form a group to purchase daily necessities such as firewood, rice, oil, salt, sauce, vinegar, tea, etc.

If the supply chain allows, you can also try some fruits. After all, fruits are the products that users are most likely to accept, and they are also the products that very few users will not choose from the platform.

4. Rewards for attracting new customers

You can set up a reward for attracting new users to join the group purchase, that is, for those users who pay to participate in the group purchase for the first time, regardless of whether they are successful or not, the inviter will be given some cash reward.

The specific amount and conditions can be designed based on the actual situation of the activity, and the most basic risk prevention must be controlled.

For example, advance thresholds, usage thresholds, etc. can effectively avoid the freeloaders.

Okay, I’ll just share my ideas about making money through group buying here, and I’ll communicate with you later when I have relevant data.

Author: Shili Village

Source: Shili Village (shilipxl)