Cashback and Coupons Influencing Ecommerce

Research has assessed India to be potentially the world’s second largest ecommerce market by 2034 with its rapid strides in the ecommerce sector..This fascinating growth curve has drawn many businesses towards ecommerce. The question would now be as to what is leading towards this success?
Our take is that it is not any one factor that has influenced the growth of ecommerce, but a combination of several. It is an established fact now that Indians are one of the largest among consumers worldwide who shop online with gusto. Internet growth has been prolific and along with it has grown a population that has an unappeased appetite for shopping online. The segment that is shopping surprisingly comprises not just the well educated class but also the less educated ones and the unfolding story behind this are the cash back and coupons that offer unthinkable discounts to the shoppers, bargains not often found off the High Street.
Retailers today have the power to ensure sales through attractive promotions and offers in the form of discounts and cash back schemes. This helps them not just to sell more but also to grow its customer base. They have also managed to rope in a large share of the market and these schemes help them to stay ahead in the race. Through B2B transactions websites earn commissions from which they offer cash back and coupons which keeps consumers happy. It is a win win situation for both. With the increase in profit margins consumers have benefitted in terms of free shipping or free delivery on COD services. With the phenomenal growth in the ecommerce business, we can safely insist that it is schemes such as cash back and discount coupons which have undoubtedly facilitated this. With an annual growth rate of 51 % the driving force behind ecommerce success in India is definitely the cash back and coupons schemes that retailers offer for online shopping, that is the punch to boost sales. Besides big retailers MSE or Medium and Small Enterprises are also in the ecommerce race now. This is a convenient platform for them to showcase their brands and proves to be cost effective because their method is partnerships with different websites offering cash back and coupons as incentive.
Digital payments as per research are set to soar in India, an intrinsic contributor towards increase in the online sales. Digitization is the order of the day and offers and businesses will continue to soar high with more and more consumers preferring to shop on the go.
The surge in online sales has been also because of the festival discounts offered almost throughout the year by marketplaces, and retailers. Online shopping is a kind of addiction to buying and with cash back offers and discounts the temptation to buy is even greater. Moreover with the downpour of freebies the prospective customer is retained. These discounts are nothing but persuasion tools helping to engage customers to stay loyal. Starting from free shipping to cash back, buy one get one, Royalty points to actual coupons and percentage discounts; name it and you have it – Discounts galore. The temptation to buy was always there because buying makes one happy but today with these offers and the ease of digital payments and growing credit usage both the consumer and the seller benefit.

Discounts can be various types as mentioned before but giving discounts is what is influencing the Ecommerce business. A few pointers:

  • It’s a great idea to offer free shipping as people tend to abandon their cart sometimes seeing the shipping charges. Amazon Prime for example is an incentive for people to buy because Prime customers inevitably enjoy free shipping. This free shipping concept plays on the psyche of the shopper and gives them the confidence to shop for more. How you handle your shipping charges as a retailer is your smartness, possibly by hiding them in the actual price and yet keeping it attractive enough.
  • Cash backs are a definite incentive to spend more money and increases sales. People think that it is cheaper to shop online. Hence there has been a higher rate of conversion. This is their perspective which has come into play as a result of the cash back offered by sellers. It is interesting to note that at present the cash back and coupons market is valued at 500 crore and growing! It is essential for a seller to opt for cash back as smart customers always look for bargains as these.
  • Seasonal offers, Festival or Black Friday sales have become the order of the day. Consumers expect them and retailers provide them. Today’s customers are price sensitive. They even regard discounts as little treats to make them happy. The idea here is to be innovative in the offers so that new customers come every day because increase in traffic ensures growth in revenue.
Cash back and coupons are here to stay. They have influenced and will continue to influence ecommerce. The online shopping community is showing an upward trend. Abroad companies have even gone so far as to show that they will donate a portion of their earnings to non profits. In India too there are companies that donate for a green cause or to CRY and similar organizations. This helps to convince consumers and gives them the confidence that the discounts offered are genuine and the website is authentic. Although being innovative may seem arduous but the dividends will be enormous when cash back and coupons are offered as incentives. The correct implementation of such methods will help an ecommerce business to flourish. It drives ‘ancillary traffic’ to the site, attracts potential customers and improves sales. With high conversion rates the gains ultimately are immense, for the ecommerce business.