Consumer spending on sites like Groupon, Scoopon fell 7% to $115 million between January and March, according to analysts Telsyte.
"The industry is still quite young, the first few years saw treble digit growth...now this has stabilised," Sam Yip, Telsyte analyst told Smarthouse, when asked about the revenue drop.
Buying sites have come a long way from even a year ago, when the industry was "running hot."
Group buying industry peaked at 90 sites in Oz alone as Groupon, Living Social discounts on anything from horse riding to a weekend in Batemans Bay gripped the nation.
But not anymore - there are 5 main players - Groupon, Scoopon, LivingSocial, Cudo, and OurDeal - after a major period of consolidation with many small players wiped out.
Telsyte expects the market to remain "steady" in 2013, predicting revenues of $500 million.
In Q1, the fastest growing were travel and premium event offers, while food, health and beauty will continue to be the base of group buying revenue, the analyst believes.
"Consumers are now used to the concept - it's part of the e-commerce mix," says Yip.
But another change, he points out is the drop in the use of aggregate sites like Deal.com.au, or Allthedeals.com.au as "consumers don't see them as the be-all and end all any longer."
But although group buying starting out with flogging cheapie China imports, this is rapidly changing.
"We're seeing a lot more electronics goods on group buying sites. There will also be a lot more branded goods, including the electronics sector, in the future," Yip predicts.