The more you shop, the more you earn: sounds like a win-win deal, doesn’t it? That is the fundamental mantra on which Cash Back websites work. While shopping online, you can earn a percentage of what you spend in the form of Cash Back. This trend of rewarding customers has grown immensely popular amongst retailers and consumers alike. The former gets more revenues in the process while the latter adds to his/her future savings. Besides, many websites also offer a good referral policy, through which you can refer and earn money. There are three common forms in which you can earn Cash Back online:
- Flat rate Cash Back: You get the Cash Back at a flat rate, irrespective of the type of spend.
- Tiered rate Cash Back: This depends on your annual spend.
- Different rate Cash Back: This type of Cash Back provides different rates depending on where you’re spending money.
Importance of Cash Back in the world of e-commerce
- Customer loyalty: Cash Back, more often than not, guarantees repeat purchases, i.e., if the buyer has money in the digital wallet, he/she will return to the ecommerce store. So, through Cash Back, online stores can ascertain that the customer sticks to their brand. It goes without saying that most customers are price-sensitive, and therefore, they will undoubtedly be inclined to platforms that offer more discounts.
- Minimal use of solid money: who likes going to the ATM over and over again to withdraw money? Nowadays, most brands and online shopping sites offer Cash Back facilities. Thanks to the digital flow of cash, you have less dependence on solid cash.
- Optimal advantage of e-wallets: according to industry experts, e-wallets will govern financial transactions. Every brand in today’s times is keen to have its customers put cash in e-wallets. If you’re a shopaholic, online Cash Back websites can work wonders for you. Marketplaces, on the other hand, can upgrade their revenues and validate customer affiliations.
How Cash Back Works
Previously the discounts offered by e-commerce platforms were, in a way, depleting the investor’s cash. Over the years, they have suffered high burn rates, more so if they are a stage far from making profits. With the use of digital wallets, buyers can deposit virtual money, which is spaced in an assured account with the bank. Thus, the company gets interest from the virtual money in the customer’s account. This adds to the total profitable income for the company. The Cashback that users get they often spend on mobile recharges or for the payment of bills, which is advantageous for them. These days, you also have a plethora of websites where you can refer and earn cash.
Things to consider before shopping on online Cash Back websites
You may come across a website that offers highly tempting Cash Back deals, but before setting off on a shopping spree for each Cash Back online, you should research thoroughly. Look for reviews and complaints about it online; also, be careful about Cash Back sites that charge a membership fee. You should also take into account the following factors:
- Payout frequency: find out whether the site pays the Cash Back instantly; if not, find out its payout periods and conditions in detail.
- Payout threshold: some sites need you to accumulate a certain amount of earnings or wait for a particular period of time- weekly, monthly, or quarterly- before you can redeem the money.
- Payout method: payouts from Cash Back websites can be in different forms, including gift cards, PayPal credits, checks, etc.
- Payout qualifications: retailers often offer different percentages of Cash Back for different items
Difference between Cash Back and Discount
The marketing scenario has emerged to be extremely consumer-driven in today’s times. Discounts, amidst such circumstances, hardly encourage repeat visits. They are most effective in driving seasonal or selective customers. There are two reasons why Cash Back works better in boosting sales as compared to discounts. Firstly, businesses do not have the certainty that a customer will walk in the second time. Besides, once customers get accustomed to discounts on the bill, they expect discounts every time; once brands discontinue the discounts, the customers start feeling they are overpaying for a product.
On the other hand, Cash Back is a representation of future savings for customers. This is because the Cash Back can be used to offset the bill on the next visit. This not only gives a spur to repeat visits but also promotes the habit of paying the total amount for products. So Cash Back websites ensure that customers initially pay the full amount on the bill, and then instant credits are credited to their account. They can redeem this amount when they revisit the site.
There’s more to it; with online Cash Back websites, sellers can provide bundle offers to customers. Besides, such Cash Back websites boost induced trials as users feel the urge to try out new brands minus additional expenditures. Consumers also believe it to be more transparent than discounts, as they can actually see how much is getting back into the wallet.
With online Cash Back websites being the flavor of the season, what’s stopping you from giving it a try? It’s high time you jump into the bandwagon and earn Cash Back online as you indulge in shopping!