Group Buying is known as consumer collective action. Customers who want discounts on products will go to group sellers and all will agree to buy the same product, only if it is offered at a lower price. It is also known as daily deals, social buying or crowd buying. This process originated in China as Tuangou and is now quite common in many regions of the world.

One of the largest firms in the United States for group buying is Groupon. Recently, a new shopping trend is catching the interest of the online shopping community. Various websites are springing up, offering area based discount deal on various products and services. Consumers have a number of group buying sites from which they receive offers on a wide range of products at greatly reduced prices. Now, all retailers present offers through shopping sites to capture sales.

By adapting to this new emerging trend, sellers are engaging their customers in a completely new way. This way, they can not only offer great deals to their existing customers, but also market their product to the friends and family of existing customers.

Group buying or customer buying is a win-win situation for both the seller and the buyer. A buyer wins to the extent that he saves money, does not have to wait for the product to go on sale, and has more bargaining power than the seller. The seller is also satisfied because selling this way lowers his maintenance price, he can get new customers, and he can make more profit by selling more. The group purchase opens a new alternative for the owners and clients of each commercial company. The trend of monthly purchases has started only from this concept, if someone buys a dozen of a particular product than one piece, by piece, and the cost goes down.