LetsBuyIt.com operates what it calls a “co-buying” business model. The company negotiates discounts with suppliers or manufacturers which are proportional to the number of buyers it can attract on its site. Items are posted for sale with a price which reduces over a buying period as the number of users who choose the same item increases. Since its launch, over one million users have registered and 450,000 products have been sold in 14 countries. The company was incorporated in the Netherlands, is managed in the UK and makes more than 50% of its sales in Germany.
LetsBuyIt.com's chief executive has said that his company is in talks with potential investors to raise the funds needed to reach profitability, estimated at around £51 million. With funding, profitability is forecast for 2002. Without new cash, analysts say the company will be unable to continue beyond the middle of this year.