They flood inboxes with daily deals. But it’s not all for nothing as latest figures reveal.

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The newest form of e-tailing is worth $73m in Q1 alone, according to Telysyte.

Last year the sector made $63m in this market – on average $5.25m per month, now it’s averaging $24.3m monthly – a fourfold hike.  It also represents a jaw droping 62% jump quarter on quarter. In Q4 2010 it was worth $45m.

Revenues generated in Q1 alone exceeded the full year 2010 industry revenues of $63 Million.

This means the sector which includes players like Scoopon, Spreets, Cudo and Jump On It is on track for values to exceed $400M this year if growth continues unabated, Telsyte predicts. These ‘Big 4’ generate 80% of the revenue between them.

And word of mouth is also helping to seal the deal and some companies compensate subscribers if they spread the word giving them free deals if get a certain number of friends to sign up.

“Group buying deals have become the new “water-cooler” conversation starters and the phenomenon is quickly becoming a mainstream way to shop online,” says Telsyte.


Almost 6,000 deals online group buying sites so far this year. And this comes as no surprise.

Some of the sites like Stardeals, run by US operator Groupon, e-mails 2two separate deals each day while other players like Living Social Deals send a daily mail flogging multiple offers as competition between players intensifies.

Jigocity, Deals and Catch of the Day are some of the other players on the scene. Aggregrate sites like allthedeals.com.au also list every offer from every group dealer.   

Just last week electronics retailer Harvey Norman broke ranks and jumped on the e-tail bargain bandwagon with its site, Best Buys, selling everything from Revlon cosmetics to garden accessories.

 “Consumers have been spoilt for choice with the number of deals available to them on any given day, saysTelsyte Research Manager, Sam Yip.

“Group buying sites have extended their reach by increasing the number of side deals, launching into new locations, and offering compelling national deals in addition to local deals”

Consumers have started to spend more money in the sector. In the first quarter, deals above $700 became popular and broke records for revenue generated on a single deal.

Health and beauty remains a strong category, but pricier travel and accommodation deals are also starting to emerge, “proving group buying can be a viable channel for higher priced products and services” he added.

Cudo sold 2000 vouchers for a Thailand holiday deal generating $1.6m and OurDeal offered a Daydream Island deal for $500, ringing up a cool $1.4m for the operator.


Telsyte estimates that consumers have saved over $200m in the first quarter of this year by purchasing group buying vouchers.

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