Social shopping is bursting onto the scene in a major way. These sites offer consumers an easy way to discover lesser-known products and find bargains and are a boon to retailers looking to reach new customers.Sites like Groupon, Jasmere, TurnTo, and Woot are quickly gaining popularity. Each site offers its own version of social shopping. Groupon features one deal each day, plus a “side deal.” Recent deals include $35 for $70 worth of preassembled meal kits from Healthy Habits Kitchen and $20 for a one-month membership and two personal training sessions at Fitcorp, a $189 value. Users can go to the site to view the day’s deal or have it delivered via e-mail.
If not enough people purchase the deal, no one gets it, and those that purchased are not charged. There is no charge for businesses to list a deal; companies work with Groupon to design an offer, and Groupon takes a portion of the revenue generated.
Over at Jasmere.com, there is also a featured item, but the price fluctuates based on how many of the items are sold. Here’s how the site describes it: “As more people buy, they price goes down for all. Don’t worry, we’ll keep track for you. Your credit card will be charged at the end of the feature, and everyone is charged the same low price. The more buyers, the less everyone pays.” As with Groupon, users can sign up to receive daily information by e-mail.
Jasmere specializes in niche brands that the company feels deserve national attention. The idea is that bigger brands have the resources to garner top spots on search engines and claim attention on social networks, and smaller retailers get squeezed out. “We believe if enough people just know about some of these stylish, up-and-coming designers and retailers, they would buy their products,” said Katrina Kugel, co-founder.
TurnTo’s model involves partnering with Web sites to have them carry a TurnTo button. When registered users click on it, a drop-down list shows which of their friends can advise them on that purchase. In January, TurnTo announced that the partnership had helped Jomashop, ChristianCinema, and eParty Unlimited boost sales during the holiday season. “We take great pride in having helped our partners succeed. Adding the trust that comes from personal relationships into the shopping process delivers benefits for both customers and merchants,” said George Eberstadt, founder and CEO of TurnTo.
Last but not least, online seller Woot offers deals on items like electronics, games, books, wine, toys, and more one at a time, starting at 12:00 AM CST and continuing until the item sells out or is replaced by the next item at 11:59 PM CST. The social part of the site comes from T-shirt sales where artists and others can submit their designs. In addition, Woot recently partnered with Lippy, a site that lets users show their friends what they are buying.