Nowadays, electronic commerce (e-commerce) in China is just developing at a high speed. Its rapid development has brought about many new shopping ways. Currently, the very promising online buying way is group buying, or Tuangou, mainly due to its low price. However, recent statistics has showed that there is a big decline in domestic online group buying industry. About half of group-buying websites have shut down. In this paper, to find out the reason why the industry is bleak, firstly we study the profit modes of Chinese group-buying websites, and then some issues are presented, and in the end we propose some advice.
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