The idea of getting cash back on your purchases is not a new one. For years, customers have been able to earn extra money back when buying goods and services. However, recently this has become more common among online retailers as well.
In fact, many businesses are using cashback as a way to win over customers and increase their sales volume. So what exactly is cashback online? How does it work? And why should you use it if you're an online retailer? We'll answer all these questions here!
What is Cashback?
Cashback is a form of discount where a customer gets a percentage of their purchase back. It can be used as either a way to reward customers for international brands online shopping with you, or it can be offered as a way to entice customers to shop with you in the first place.
In essence, online shopping cashback is an online retailer's way of saying “thank you” for choosing our store over others. The idea behind cashback is that if your business model requires shoppers to spend more money in order for all parties involved—shoppers and retailers alike—to win, then why not offer some incentive?
How Does it Work?
Cashback is a simple concept: the retailer gives you back a percentage of your purchase in cash. For example, if you buy a watch for $200 and the retailer offers a 10% cashback program, then you will receive $20 in cash when your order ships.
Cashback programs can be structured differently depending on the retailer and how they want to incentivize consumers. Sometimes retailers will offer cashback only on certain products or only during certain events (e.g., Black Friday). Other times they’ll offer an ongoing program that gives consumers points which can be redeemed later for store credit or gift cards. Some retailers have even experimented with introducing “negative” cash back programs in which customers are charged an amount based on what they spend—in essence, paying them to shop!
Who Can Use It?
Online cashback comparison is beneficial to both consumers and businesses.
Consumers are able to make purchases at online retailers knowing that they will receive a percentage of their purchase in cash. This can be used as extra money for groceries, gas, or even saved for future purchases.
Businesses have the opportunity to increase sales through cashback programs offered by various online cashback websites. In order for a business to participate, it must have an established relationship with an online retailer (such as Amazon), who will then send them a commission when one of its customers makes a purchase through that site using the business' special offer code or link provided by them.
The Future of Online Cashback
Cashback is one of the most effective ways to retain customers, which is why it's becoming increasingly important for online retailers. By offering cashback, you can get your customers to return to your site, buy more and buy more often.
Cashback has become so popular that it's even starting to drive retail innovation in areas such as product delivery, customer service, and even financial services.
Cash Back As a Business Tool
Cashback is a great way to attract new customers. If you run a blog or eCommerce website, it’s good to offer cash back as an incentive for people to subscribe or make purchases. And what’s better than offering a happy customer cashback?
Cashback online purchases can help you get more reviews. Almost every online retailer wants reviews on their products and services. But how do they get them? Well, if they offer one percent cash back at checkout, or 10 percent off their next order if the customer leaves feedback on their experience with the company (or even just signs up for the newsletter), this will encourage customers who had been thinking about making a purchase but hadn’t yet decided whether or not it was worth it now have another reason why this might be helpful: getting free stuff!
The Retailer's Perspective
A cashback offer is a great tool to retain and attract customers. It helps to bring in new customers, keep existing ones, and increase sales and revenue.
- Retain old customers
Cashback offers can help you retain your most loyal customers by rewarding them for buying from you again and again. In fact, one study found that 61% of consumers surveyed said they would be willing to spend more with a retailer if the store offered cash back on purchases made at the site (source).
Cashback can also help build trust between a business and its clientele by making it clear how much each customer is going to get back after making a purchase; this builds confidence because it shows that there's no risk involved—there's nothing better than knowing what you're getting into!
The Consumer's Perspective
The consumer is getting a benefit. The consumer is getting a discount. The consumer is getting a reward. The consumer is getting a coupon, gift, voucher, or rebate under the terms of an agreement with the retailer.
The Benefits of Using Cashback As a Tool for Online Retailers
As a tool for online retailers to retain customers, cashback is proving itself to be an effective method of keeping your customers loyal. For example, in one study conducted by the Aberdeen Group and ICIS, researchers found that nearly two-thirds of consumers were willing to pay more with an eCommerce retailer that offered cashback services. This can be a huge incentive for shoppers who are looking for ways to save money on their purchases.
Another benefit of offering cashback as a loyalty program is how easy it is for you and your team members (who may not know much about marketing) to implement this type of reward system. By simply integrating it into your website's checkout process or adding links from social media posts and emails sent out from customer service representatives, there isn't too much work involved on your end—and these small investments can reap big rewards!
The Challenges of Using Cashback as a Tool for Online Retailers
For the cashback model to work for retailers, it is crucial that customers trust the best international shopping sites they are using. In fact, according to research conducted by VoucherCloud and YouGov, only 2% of online shoppers would consider a retailer if they knew it had an exclusive relationship with a cashback site.
This low level of trust means that many people are unaware of how easy it is to get money back from their purchases. Many retailers also fail to make this clear on their best online international shipping or even mention it at all when communicating with customers.
For retailers, cashback is a great tool to use to stimulate sales and reward customers for their loyalty. But it’s not just about the money: it has the potential to be used as a retention tool as well, helping online retailers retain customers by providing them with added value beyond just the rewards themselves.