UK auction sites are now beginning to see a weakening in competition from the likes of the popular daily deals websites. But while many of us have heard about these so called daily deals websites, few of us actually know what they are and how they actually work. Well fear not, because over the couple of paragraphs that follow, we are going to take you through everything you need to know about daily deal websites and how they work.
Daily deals websites work on a group buying principle. They effectively gather together large numbers of consumers who want to buy something, and then purchase it at a discounted rate on account of there being so many of them.
From the perspective of the retailer who chooses to place an advert with them, it is a win-win situation. They get a guaranteed bulk sale, with unusually high volumes of stock being shifted. And because the sales are guaranteed, the retailers can afford to sell them at greatly reduced prices. This also has the added advantage of exposing retailers to large numbers of potential new customers. The people that favour the use of these daily deals websites over the traditional UK auction sites, are by enlarge, an audience which most retailers will not yet of connected with. By offering such a cheap introductory offer via the daily deal websites, retailers expose themselves to huge numbers of first time buyers. These are buyers who may not have ever considered purchasing a product or service from these retailers before. The retailers hope that by enticing them in like this, a portion of them at least, will then go on to become regular repeat customers. If at least some of the buyers go on to do this, then this repeat custom more than covers the cost of the reduced prices that the retailers have had to stump up for in the initial instance.
It is then, a far cry from the world of the UK auction sites, but there are without doubt some great deals to be had from the plethora of daily deals sites which scatter the online community. Shop around wisely and you will do well.
Some other recent studies however, have concluded that businesses and consumers alike are beginning to turn their backs on these so called daily deals websites in favour of UK auction sites instead. Some studies allege that businesses are growing ever tired of new customers appearing, using their discount voucher, and then trotting off never to be seen again. The very principles behind the group buying scheme which make it so appealing to retailers, is the very thing that is now making them less and less likely to want to take part.
As online shoppers become more and more switched on towards how to alter their shopping habits and make sure they get the very best deals available for their money, retailers are losing out. The discounted customers that they hope will return, are becoming less and less likely to do so.