Group buying allows merchants to reduce prices through the transaction volume (flow) brought by bulk users, while discounts allow merchants to obtain more transactions by reducing prices. As a new mode of e-commerce, group buying improves the bargaining power between users and businesses through self-organization of consumers, professional group buying websites and group buying organized by businesses, and gains commodity profits to a great extent, which has attracted the attention of consumers, industry manufacturers and even the capital market.

Group buying, that is, group shopping, refers to the combination of consumers who know or don't know each other to increase their bargaining power with merchants in order to obtain the most favorable price. According to the principle of small profits but quick turnover, merchants can give group discounts below the retail price and quality services that individuals can't get.