Say goodbye to the age-old practice of discounts and say hello to Cashback! Many e-commerce websites are implementing the idea of cashback to promote sales of their products. Offering discounts used to be a good sales promotion idea which is being outweighed these days by the marketing strategy of providing cashback. In this article, I am going to discuss both cashback and discount to see which one of them is better from the point of view of a consumer.
While a discount is an upfront reduction in the price of a product, let us look at cashback which is a bit technical.Cashback is an indirect way of reducing the amount to be paid by the customer to purchase a product. A cashback is a % of first purchase that is returned to the customer later by the e-commerce entity.
The e-commerce companies which provide discounts on the consumer purchases do not provide any additional benefits to them unlike the websites providing the benefits of cashback. Here are some additional perks you can enjoy by purchasing products from cashback providing e-commerce entities.
1) The cashback that you get can also be utilized to pay utility bills, for mobile recharges and shopping, and a whole range of other things.
2) In many cases, can earn even more cashback by doing a referral to another person.
3) It enables trial as the customers can try out new brands with partial or nil expenditure.
So go on and spend those extra bucks, we’ve got you covered!