Cashback Schemes are Simplifying E-shopping

Cashback is simply a reward given to a shopper for making a purchase. Everytime shoppers make a valid purchase they earn cashback, which can be in various forms. The main categories of cashback that might be offered are

• Debit and Credit Card Cashback: In the case of debit and credit card cashback, the consumer gets a cash reward from the card company in the form of cashback when they spend at a partner outlet of the bank that issued the card. Similar to the other cashback offers, the credit or debit card cashback rebate is usually a percentage of spend, but may also be a flat amount credited per transaction.
• Mobile Phone Cashback: This money is offered as an incentive for potential customers to choose a particular tariff plan for their mobile phones.
• Cashback Website/Portal: A site where customers can earn a reward in the form of cash rebates on online purchases that they make at partner stores of that cashback website.

There are a few critical elements of any cashback program:

• Merchant Partners
• Cashback Website
• Shoppers/Customers
• Eligible Purchase
• Coupon Codes
• Redemption Options

Merchant Partners

Cashback websites tie up with merchant partners from various industry verticals. Typically, these partners pay the cashback website a commission on sales generated through the website. The commission could either be a flat rate per transaction or a cut of the sale amount. Hence the cashback website acts as a sales channel for the merchant and also an enabler in terms of driving traffic and encouraging loyal behavior. Statistics show that transacting customers referred to the merchants website via a cashback website tend to spend more and visit more frequently. This is a perfect win-win for the merchant, the cashback website, and the customer. Primarily, the merchant only pays for the actual sales that are being referred and hence the merchant has nothing to lose in this engagement. The cashback website generates revenue and the end customer gets paid for doing something that they do anyway.

Cashback Website

The design and layout of a cashback website is extremely important for a seamless customer experience for the user. The website is normally designed so that the customers is able to find the cashback offer that they are looking for in the fewest possible clicks. On the other hand, the cashback website also has a comprehensive set of offers and deals from the partner stores. The cashback website serves as a destination website that anyone buying anything online should start their shopping from. Coupon codes and vouchers are available on these sites as well and cashback is generally paid on top of the discount availed by them.

Shoppers

A customer of a cashback website is any customer of any of the online partner stores. The customers of any age group can avail the benefits of a cashback website. The process to be eligible for cashback is extremely simple, requiring only a few extra clicks on the cashback website.

An Eligible Purchase

For a purchase to be tracked and be eligible for cashback, the shopper must first visit the cashback website and click on the merchants link there. This allows the cashback website to track the order and credit the shoppers account with the reward for that particular transaction.

Many cashback websites require cookies to be enabled on the browser for tracking orders. Directly visiting the merchants website will also not be eligible for cashback. In certain situations, use of coupon codes obtained outside the cashback website will void the cashback for that order.

Coupon Codes

Another important aspect of a cashback website will be coupon codes or discount vouchers. Coupon codes is a great way for the shopper to buy online. Coupon codes are simple codes which will give the consumer a discount from the listed retail price. All that the consumer has to do is to enter the code during checkout. On entering the code, the reduced price is displayed in the shopping cart before the payment is made.

Coupon codes are usually an additional discount feature that shoppers can use on top of the cashback that is being offered by the website. Coupon codes are also known as coupons, promotional codes, e-coupons, or discount codes. Most of these coupons are short-term and offer discounts within a given time-frame and are to be used within this time.

Redemption Options

There are several ways in which a cashback website can offer to pay the consumer the cashback he has earned. Payments may be in the form of bank transfers, gift vouchers, online sites such as PayPal or bank cheques.

A shopping website, especially a cashback website, should facilitate the shopper in their quest to buy what they are looking for and not flood them with unnecessary promotions and product advertisements. A cashback shopping portal is designed to simplify your shopping experience, maximize your savings, and make sure you have an exciting and comfortable experience everytime you shop online. The whole process is simplified and made enjoyable and its quite addictive.