Group buying site Joinem, launched to the public today, and announced a $5 million in investment from investors whose names have not been disclosed. Reports suggest that the investors include two senior members of Facebook’s executive team.
The site is led by Chief Executive Darren Waxman and Executive Chairman Rick Braddock, former Priceline and FreshDirect CEO.
Joinem calls itself, “the first community-powered digital retailer to monetize the full potential of social commerce”. However, this is a familiar demand-base retail model: a high volume of sales can lower the price of individual products. Companies like Costco and Gilt Group does the same, and Jet.com would most probably feature aspects of demand-based savings when it’s launched. Last month, Jet.com had raised $140 million in funding at a valuation of $600 million.
Nevertheless, the way Joinem cuts prices sets it apart from Jet.com, which claims to lower costs by connecting buyers with nearby merchants. Joinem, on the other hand, offers a Mercata-esque model, where the price of its household goods drops, as certain number of customers agree on a set price. Joinem claims that this model, which it calls “WePower,” offers up to a 25% discount over the price one would pay for similar products on Amazon.
“The core value in social media is in fact collaboration, or sharing. It’s that value and benefit that we’re trying to lever with this concept,” stated Braddock.