This thesis defines development and characteristic of electronic commerce and analyses model of group buying in more detail. Group buying, because of achieving high discounts on products and services, is massively applied in the world and today it stands for most profitable form of electronic commerce. In model of group buying three sides are participating, service provider, consumers and middlemans. Croatian market is still to small for comparison with major world markets because only a small number of service for group buying are present. The main reason for consumers to participate in group buying proces are high discounts, for service providers that is advertising and attracting a large number of customers. Because of its nature for achieving low prices, model of group buying will surely be tenable in near future. Primary research is showing satisfaction of service providers, more specifaly, restaurants. Analysis has showed that service providers are barely covering their costs in case of using group buying. Eventhough profit is not high, consumers are using the service and fulfill restaturant capacity and spend more than original coupon price. Service providers said that only a small number of coupon users returned to the restaurant which confirms opinion of service providers about consumers, that they are only interested in low prices.