The global leader in “daily deals” is now valued at almost $13 billion after saying it increased the offering by 5 million shares to 35 million in total and pricing them at $20 each, above an initial range of $16 to $18. Is this good business, or simply a return of the crazy valuations that heralded the spectacular crashing to earth of the majority of 1^st generation Internet companies.

What does Groupon actually do for its customers?

There are mixed reports on the validity of the daily deals model. While the company undoubtedly offers small businesses coverage to a huge customer database, that they would never be able to build themselves, many companies have struggled to break even when take-up has been high. They are forced to price the service often at a loss.

However, for those businesses simply “looking to get people in the door”, then this offers an unrivalled opportunity.

The threat of competition:

But can Groupon really sustain such a high valuation? The shares have traded robustly in the first week, but the threat of more competition hangs heavily over its business model. Many of the major online retailers are creating their own flash-sale sites to sell off stock, and many retailers are now offering time or volume-limited sales either on their own sites, or via social networks such as Twitter and Facebook.

This trend is likely to continue, making the proposition of third-party daily deal sites less exclusive and making it harder for them to source compelling deals. If, as some investment specialists predict, backers simply “flip” their investment – sell straight away and profit on the initial buzz – it could start a downward spiral and something akin to the burst dotcom bubble all over again.

The next few months will tell if the spectre of overvalued internet companies is coming back to haunt us. In the meantime, $13bn company in 3 years from its inception..not bad for 3 years work!

But here are 4 more trends, that have been widely cited over the internet. I am sure, numerous lists will appear over the next couple of months; but here is a starter for ten!

1. Social commerce. Social who? In short, you can now sell on Facebook by letting your customers buy, but also letting them tell their friends. And letting their friends tell their friends. Even if you don’t offer ecommerce on your website, it’s now possible to provide that service through the social network. And it’s overly simple to set up.

2. Group buying. You’ve heard of sites, such as Groupon, that sell for discounts if you get your friends to “group” together to buy a product or service? Based on the $1 billion price tag Groupon received earlier this year, expect them and like-minded sites (such as LivingSocial, YouSwoop, and ScoutMom) to continue to grow, offering you a new way to reach different audiences.

3. Q&A sites. It may seem crazy if you’re not a high user of the social platforms, but people are beginning to make real decisions based on recommendations from their virtual friends. Sites such as JustAnswer will begin to pop up, allowing people to ask a question and get real answers, from real people. The marketing possibilities become endless because you’ll begin to collect data from groups of people instead of one customer at a time.

4. Mobile. It’s no surprise our phones are becoming like third hands for most of us or that we’re eons behind Asian countries on how we use them. But we’re beginning to catch on and move toward abandoning our laptops for phones. Watch for movement toward mobile payments and begin thinking about how to accept payments via an application on the phone.

So, have a think, your first billion could come from a start-up in one of these 4 areas…

Psychology plays such an important role in social commerce; and it made me wonder just how far we can be influenced within the field of social commerce.

Many consumers review their purchases with a greater purchase or mission in mind. They genuinely want us to eat in that restaurant, or buy this jacket, because it made them feel good; and they want us to experience the same feelings. A positive , warm hearted, genuine, suggested from our friends or fellow consumers, to make our lives better.

There is no getting away from just how much we are shaped by our material environment. Our purchases define us in some way. We have an idea of who we want to be, and then we buy things or live a lifestyle, that is consonant with this vision that we have of ourselves.

So just how far can we influence others through social commerce? A powerful thought backed up with faith, can take us a long way. A firm belief makes great things happen. So my question is this..how can we adapt the social commerce model to the more spiritual side of life? Harness this greater good to make our lives more enriched on a spiritual level as opposed to exploiting it to get 30% off a massage (Groupon) or a voucher for a 2for 1 dinner for example.

We have power now as social consumers. We can influence our friends…they want what we have (keeping up with the Joneses mentality) and listen more attentively to our own recommendations and reviews than those pushed upon them by brands.

So we have the power to become our own brand …lets try and adapt it to something other than material gain…any thoughts?!

Thanks to Brian Solis, for the thought provoking video..has set the mind racing:)

On Tuesday Twitter unveiled its first foray into selling products.

The company announced @earlybird Exclusive Offers, which will be time-sensitive deals on products and events that will appear on the @earlybird Twitter account. People can follow that account to get access to the deals.

The idea borrows from private and limited-time sale sites, like Gilt, Groupon and Woot (which was  recently acquired by Amazon), a recent trend in online shopping. It also takes advantage of what companies like Dell, which attributes millions of dollars in sales to posting deals on Twitter, are already doing.

The deals could be on products, like iPods or nappies, or on events, like concert tickets or travel. In a post on a company blog, Twitter hinted that it could filter deals by category, like clothing  or gadgets, in the future. Twitter stressed that it would be selective about which deals were offered and “try and make these deals interesting and of value to you.”

The retailers will determine the price of the items and how many are available. Twitter will earn money from the sales. It is experimenting with different models, like a cut of each sale or a fixed price per deal, said Sean Garrett, a Twitter spokesman. The retailers will collect shoppers’ credit card numbers and otherwise fulfill the transaction.

This is a different approach to e-commerce than the one Twitter were potentially toying with last year, in which retailers could offer transactions on the site based on what people are writing about. A running shoe retailer, for example, could offer shoes to people who asked about the best shoes for running on trails. This might still be possible with annotations, a new service that Twitter says it is rolling out soon so that people can add so-called metadata, like a way to make a purchase, to Twitter posts.

The first deal will appear soon, Mr. Garrett said. They will initially be nationwide, but Twitter is considering offering deals specific to cities or countries later on. If @earlybird takes off, Twitter could become a competitor to Groupon and the many other local daily deal sites, as well as to Woot, Gilt and others.

Many luxury groups have opted out of e-commerce altogether, believing the risks of selling online – such as brand degradation and counterfeiting – outweigh any benefits.

This whole notion of the web being a channel of discounting went against the very aesthetic of these brands.  But recent innovation has reshaped e-commerce. Luxury brands are discovering ways to reach customers without sacrificing brand integrity.

Applications on smartphones and the iPad have delivered a powerful interface for users to search, browse and buy goods. Ralph Lauren’s Rugby brand and Gap, among others, have developed their own sophisticated apps.

Indeed shopping is proving one of the most popular activities on touch devices. Sales through eBay’s iPhone app last year topped $500m. Purchases included a Lamborghini, and a Bentley.

All this shows that people are rapidly becoming used to the convenience of getting what they want, when they want it. Buyers are used to finding very expensive goods online. People are also confident enough to make big purchases without having to talk to a sales representative.

Luxury goods are among the most popular things consumers search for online, and a lot of it is their desire to know what’s going on with them, and their desire to own them. Yet meeting the demand and maintaining the luxury brand’s image was a perennial challenge.

Most high-end brands have established online sales through traditional channels, such as resellers and their own sites, and now they are gaining the confidence to venture out.

In addition to new applications, and private sales sites such as Gilt Groupe and Haute Look, one can also point to local deal sites such as Groupon and Living Social, and a new wave of companies that are bringing together location awareness, real-time inventory and deals, and social media.

It’s a huge period of innovation for consumer facing e-commerce. Customers are looking for curation, and social and mobile media are enabling real innovation and entrepreneurship today.

Here is an introductory video to show what it’s all about Collective Buying Power