A Group Buy is simply a group of people who band together to get a volume discount on a product or service.
Group Buys trade volume in exchange for a discount. The seller offers a range of discounts and states the number of buyers needed to reach each of those discount levels.
The entire group ends up with the best discount possible according to the number of members who have pledged. A smaller group gets a smaller discount while a bigger group gets a bigger discount. Big or small, the result is better than what each buyer would get on their own.
What is a Gang?
A Gang is what we call the group of people in a Group Buy. When you join a "Gang" you’re joining the group.
How is a Group Buy different than a regular purchase?
- Purchase Price: A group buy offers a discount from full retail or MSRP.
- Wait time: Group buy orders begin shipping on a specified date after the deal locks. Delivery times are stated in each deal’s Terms section.
- Payment Method: There is zero cost to sign up or pledge for a Group Buy. You are only charged if the deal successfully reaches your selected discount range.
Phases of a Group Buy
Open Phase: During the Open Phase of a deal, you can show interest or pledge to join the gang. Once the Open Phase reaches the final 7 days, merely showing interest is no longer an option. Since the time on the deal is so short, your only option is to pledge.
Optimization Phase: This only happens when a deal has not reached the maximum discount at the time of the deal locking. The Optimization Phase lasts for 48 hours after a deal locks. During this time, pledged members have the ability to adjust their discount range to still take advantage of the deal. Once the 48 hour period ends, the final discount is determined and the seller begins processing orders.
Finalization Phase: The seller reviews all the orders and determines inventory allocations or production demands. Sellers usually complete the review process within 2 business days of the Optimization Phase ending.
Your final order configuration is determined by the seller based on the selections you made when pledging.
The seller collects payment.
You receive your final order configuration email which includes information on what to expect next.