Research of the Risk and Profitability of Community Group Purchasing in the Context of New Retail Economy

Abstract

With the development of e-commerce, several forms of consumption appeared. Group purchasing is one of the forms of online shopping, which defines purchasing grocery in community groups from retail business by e-commerce ways. This paper will illustrate the properties of group purchasing and conclude the development process of group purchasing by researches. Then, it is going to discuss the risk and profitability of group purchasing nowadays by the methods of literature research, case study, and comparative analysis. Firstly, index analysis of the risk and profitability of community group-buying is the next part of the discussion, which is based on Dingdong (Cayman) Limited. Secondly, the category of risks will be given, which generally includes three main risks, competitional Risk, Financial Risk, and Operational Risk. The aim is to form a solution to benefit these two factors. Finally, the result of the research can be a guide to improve the profitability of businesses in the competitive group purchasing area and reduce the potential risks of the businesses.