Daily Deal NOT the same as Group Buying

There are simply too many bloggers and online magazine writers and commentators who describe Daily Deal sites such as Beyond the Rack and Haute Look as being the same as Group buying sites such as Groupon or Living social. They are NOT the same.

Folks, these are two different concepts. Here’s a break down:

Daily Deal sites:
These are sites that are online stores selling certain things themselves.
They offer daily deals on their own merchandise that you must buy from them on their own site.
They just happen to put stuff on sale from 50-90% off. But there is no group buying involved nor are they selling vouchers or certificates to redeem at other retailers. They are selling manufacturers’ merchandise. Stores include Beyond The Rack, Haute Look, Billion Dollar Babes, Zulily, Totsy, Vente-Privee, Ideeli, One King’s Lane and the like.

Group Buying Services:
These services do NOT sell merchandise. They sell vouchers, they sell a “promise to buy” voucher for consumers to save from 50-90% off OTHER stores. Typically, groups of people are required to purchase the deal before the deal can be allowed. (thus the concept of group buying)

Group Buying service sell vouchers to other retailer’s stuff and make a cut off the sale. Daily Deal or flash sales sites are actually online stores that sell the merchandise they carry from manufacturers. They just happen to sell that merchandise as a Daily Deal concept.

Yes, the consumer ultimately gets to save a huge amount of money with either concept. But these are two different types of businesses and bloggers and writers should treat them as such.

Thoughts? Speak your mind.