Have you heard of cashback? Do you use it? Cashback has been gaining more and more space and popularity in Brazil. And if you are an affiliate or intend to make money through affiliation, you need to keep an eye on it.
This technique is more common in e-commerce than in more traditional physical stores. It consists of a way to attract customers and make purchases more advantageous, generating more sales in online stores.
In this article, we will explain what cashback is and the advantages of adopting this model in your business.
What is cashback?
The word cashback means, in Portuguese, “money back”. And that is literally what happens. When the consumer makes a purchase, they receive back part of the total amount spent.
It may sound crazy, but this is exactly how brands are selling more and attracting more customers to their websites. After all, it is very advantageous to get back part of the amount spent on a purchase. What consumer doesn't like that?
According to the National Electronic Commerce Association (ABComm), e-commerce cameroon phone number data is expected to generate revenues of R$185 billion in 2023. If we take as a basis a cashback website that offers an average of 5% of the money back, consumers could recover up to R$9.2 billion.
How it works
The cashback process is very simple. Basically, the consumer makes a purchase and gets part of the money back.
For this process to happen effectively, there are cashback platforms . They are responsible for connecting partner companies and consumers.
With each purchase, they receive a commission, which they share with the consumer. Therefore, purchases with cashback must be made through these platforms. It is not possible to get money back directly from e-commerce without going through these specialized platforms.
For consumers, participating is very simple. All they need to do is register on the platform and check out the partner companies and offers available. Once logged in, they are directed to the e-commerce site and can make the purchase as normal.
When you make a purchase through a cashback platform, the system recognizes and records the amount that will be refunded. It is worth remembering that this cashback varies according to each store. Typically, it can be up to 5%.
On the cashback platform, users accumulate their refunds and can redeem them from a certain amount. Transactions are free for the consumer and cashback deposits occur on days and at a frequency determined by the platform, for example, once a month on the 5th of each month. Remember that the money can be returned as a bonus in stores or as credit in your account.
Cashback X discount
Many people compare cashback with discounts, but they are very different store promotion tools.
The discount is given on the total value of the product and calculated at the time of purchase, before payment is made. Therefore, the consumer already pays the discounted amount, and the purchase ends there.
In the cashback model, the consumer pays the full price of the product. Payment is therefore made based on the total value, knowing that the cashback platform will calculate a portion of the purchase value for reimbursement or bonus.