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You’ve probably heard of cashback websites.
eCommerce marketers swear by them.
Online shoppers obsess over them.
And for good reason.
They pay online shoppers for shopping.
All these shoppers need to do is visit the company’s website via the link provided by the cashback website. Afterwards, whenever they buy an item, they receive money once the transaction is processed. The amount they get can range from a few pennies to more than £100!
It’s also pretty damn fast to sign up on any cashback website.
Once users create a profile, they can log in and search for deals on the retailers they want to buy from, like AliExpress, BT Broadband, or Expedia.
That’s right—users can get great deals on flights, hotel bookings, broadband offers, shoes and a lot more!
These offers are hard to resist, and it’s obvious why everyone loves them. Think about the amount of money that consumers can save by shopping on a cashback website.
A study by Statista found that among respondents with an annual income below 50,000 British pounds, 63 percent said that they would purchase a product based on its high-value cash back rebate.
For retailers, this means that they’re missing out on a huge opportunity if they’re not on any cashback websites.
Cashback websites work best with products in the switchers market, such as insurance and broadband. With a great deal, you can easily entice customers to switch to your brand.
Online store owners who offer products that are sold by other merchants can also get the market share of their competitors via cashback websites. Users can easily search for a product and compare it with competitors, by filtering the results based on name, highest %, highest price, popularity, or newest added.
If you offer the best deal, you can rank first in the filtered results of the cashback websites. Meaning that, with a good offer, you can drive a lot of traffic to your online store.
This is how cashback websites earn and why they pay out money. Since they have the ability to direct traffic, they earn money based on the number of clicks, transactions, or accepted applicants that were a direct result of the offer posted on the site. Cashback websites then distribute some of the money they were paid to shoppers who avail of the deal.
Cashback websites are one of the hottest business models in eCommerce marketing.
Consumers find it easy to sign up and find the best deals, while, retailers can beat their competition based on the deals they offer.
It’s the perfect win-win situation.
Chris has been at the forefront of eCommerce and a pioneer of online retailing since the early 00s. A 5-time Drapers Award winner, Chris has extensive experience in developing fashion brands online.
Chris founded Cake in 2016. Based in Birmingham, with offices nationwide, Cake specialises in helping fashion brands understand their market online and then helps to develop appropriate strategical direction to achieve their plan, all backed by his 20 years of operating in the retail market.
