Bes Stocks To Buy 2014, Best Stocks For 2014: Social Buying Sites: Altering the Holiday Shopping Dynamic

Saturday, March 17, 2012

Social Buying Sites: Altering the Holiday Shopping Dynamic

(House Of Sims)

Participating in a social buying website might seem like a lot of work if we were talking about $1 or $2 savings. But in most cases, the discounts made available by these communities are substantial – 50% or more in some instances.�LivingSocial.com as another example. Tracey Wilson, the chief executive officer of Red Velvet Cupcakery, offered $50 gift cards for $25 to users of LivingSocial three times per year. And the users responded: these three promotions alone dr0ve “about as much as a week’s gross sales of $20,000 to $30,000,” she told USA Today.

Drawbacks

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Of course, not everyone has an equal shot at reaping the rewards of social buying. Keep in mind that the types of businesses that participate are usually local retailers. If you live in a sparsely populated area, it might be tough to find Groupon or LiveSocial-type deals unless you want to drive 50-100 miles for your discount, at which point the entire exercise could become pointless.

Then there’s the chance of finding a deal you would love near you, but not getting it because too few people signed up. Other times, deals will go live, but because they’re so popular, you may find it challenging to redeem the coupon for which you already paid.

You can also find yourself feeling rushed to act immediately, or else lose out on the deal. And of course, whether a deal is really a deal is always a matter of opinion. To some of us, a $200 spa ! treatmen t reduced to $85 will still seem pricey; to others, it will be a steal.

Holiday Shopping

(Paul Stevenson)

The idea of using social sites to save on and simplify holiday shopping is not new. In fact, many consumers are already counting on it as part of their shopping strategy. Meredith Barnhill, an avid Christmas shopper who got creative in her attempts to spend less while still giving lots, recently told CNN that�in addition to creating a gift shopping list, she is “relying on coupons and deals” from Groupon and LivingSocial.

With�customers rushing to use 50%-90% off group discounts on their holiday shopping, group buying websites may even alter the holiday shopping experience for good.

Clearly, this is a trend many consumers have embraced. If you are looking for a creative way to trim holiday shopping costs, social buying sites are worth considering.

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