Group buying in Australia is relatively new, being only introduced in 2010 but, it has become the fastest growing sector in the online retail market. In its initial year group buying websites in Australia have already generated 63 million dollars in sales, according to a study in telsyte.com.

Group buying is essentially getting items on a discount if enough people buy the same offer. Unlike other websites that offer daily deals or stock clearance sales, group buying website rely on social networking sites like Facebook or Twitter to post the deals.

The success of online group buying in Australia or any part of the world is because people are becoming more social in their online shopping activities. Online shopping before the advent of group buying was largely a lonely pastime; the buyer is alone clicking on different websites to buy merchandise. Group buying offers online buyers the same experience as shopping with a group of friends.

Group buying is also a cheap to set up, since it relies on free marketing to drive more business. Another way that group buying sites communicate with their buyers is through e-mail. Buyers at cudo.com need to give their email address before they can access the deals. Bulk buying is also good for retailers, who can still make a profit despite the low prices on products.

The top 4 sites for online group buying, Spreets, Scoopon, Jump On It and Cudo have all expanded due to the eager market for group buying Down Under. At the end of 2010, Telsyte identified over 20 group buying sites in Australia with the number expected to double at the end of 2011. Telsyte even forecasts the group buying market to grow by 284% or $242 million this year.

Group buying will eventually move to mobile group buying applications with consumers able to get deals on the go with their smartphones. The local market should be prepared for the arrival of large multi-nationals like Groupon to attract even more customers.