The hottest and least understood e-commerce model: Community Group Buying

These Wechat buying groups have enabled a group of community-entrepreneurs to have profitable side hustles through knowing how to create and maintain a chat group.

That's 社区团购 or community group-buying, the least understood business model in online retail right now.

The model is a win-win-win proposition for the consumer, community leader and the produce platform itself.

Fresh groceries have remained the holy grail of e-commerce. A task so daunting that even Amazon hasn't been able to crack it. In China, the retail grocery market is estimated by McKinsey to be worth 5.2 trillion RMB (794bn dollars) in 2019, with only 10% of that currently online. In 2020, it seems like we've finally found a business model where the... See more

With the addition of community leaders into the supply chain, the unit economics for online groceries are fundamentally changed. Now CAC is lowered since community leaders are responsible for creating their own customer groups. Customer Life Time Value (CLTV) is extended since customers have more hands-on support and social buying promotes frequent... See more