Cashback apps and websites have gained popularity among retailers and their consumers during the pandemic. For stores, it is a way to expand their audience by attracting customers who are interested in getting money back from their purchases.
In this regard, the creation of a cashback service is a good solution for businesses that want to develop in a promising niche. In this article, we will analyze the features and benefits of cashback website development for your company.
What Are Cashback Portals?
Cashback is a method that has gained popularity among online stores and retailers in general in recent years. Depending on the terms of the program, buyers can get back from 1% to 15% of the money spent.
For sellers, this means a high chance of expanding the range of customers, and for the owner of the service, it means receiving commissions from such activities.
Typically, the reward percentage ranges from 2% to 10%.
Payments are waiting for users in the form of:
credits to the account;
checks or bank transfers;
gift cards.
Retailers that often cooperate with these apps are represented in various industries, including food, fashion, beauty, health, and technology.
What Is a Cashback Mechanism?
In order to use any rewards, a customer should create a personal account and then follow the following steps:
Registration procedure. The user provides basic information.
Making a purchase. The customer should start the purchase by going to the website of a particular merchant through the platform. All transitions are recorded by the traffic source tracking tool.
Verify the purchase by the cashback service and confirm its compliance with the criteria. This process may take some time, as merchants typically have return policies and verification periods before issuing rewards.
Receiving funds. Based on the results of the transaction verification, the amount of money can be withdrawn.
For example, when buying clothes at The Iconic, a customer can take advantage of additional benefits from CashbackClub and ShopBack services. Thus, a buyer can register with one of these services, make a purchase at The Iconic through the corresponding app or website, and receive a part of the money spent back.
Other popular apps and websites include Cashrewards, ShopBack, Kickback, Boost Your Super, and Super-Rewards.
The Advantages of Using Cashback Services
Many companies have reported positive results from cooperation with cashback apps and websites.
Let's find out what benefits your cashback service can offer to store owners:
Cashback is a motivation for shoppers to return to the store. People who make purchases in the store through your app can become valuable customers in the long run.
Expanding the range of customers. Buyers will find stores through your app or website and make a purchase. For the seller, registering on your cashback site means investing in a new marketing channel that brings additional income.
Offer control. Give your store the opportunity to customize the reward amount so that it can both earn money and please its customers. You, as the owner of the service, will benefit from this even more.
Focus on the younger generation. Cashback programs are popular among young shoppers. Therefore, it will be extremely beneficial for you to cooperate with stores aimed at young people, for example, with clothes or appliances sellers.
As for the benefits for buyers, you can offer them:
Easy registration on the website in 1 minute.
All popular stores are in your platform's catalog.
Availability of a mobile version and a user-friendly application.
The ability to withdraw funds to a card or e-wallet.
Detailed information on the terms of use of the platform.
Service guarantees are extremely important for both parties – stores and customers. To become one of the top cashback sites on the market, you need to offer something unique and create more attractive conditions than your competitors.
Elevating Shopping
Don't offer conditions at such a level that it jeopardizes your profit.
Study your audience in depth to determine how to make your brand even more valuable to them. The key is to make customers feel like they are getting real value for their money.
Conduct a cashback website comparison to understand what competitive conditions you have to offer stores.
And most importantly, entrust the development of a cashback app to a team of professionals. This is how you invest in your success in this field.
The Downsides of Cashback Portals
Before developing a website, consider the aspects of its operation that may seem unfavorable to sellers and offer the best solutions:
Higher cost than benefits. The service receives a commission from the merchant for each sale made through it. Therefore, it is important for you to create conditions that do not contradict the goals and expectations of store owners.
High competition in this area. Small businesses can get lost among large chains with attractive cashback offers.
Mismatch of the business strategy with the requirements of the audience. Always remember what is most significant to you in your business.
In addition, you should compensate for all weaknesses for users who are interested in receiving a reward:
Delayed payments. Make sure that reward checks do not lead to delays in payments.
Unclear functionality. Provide the convenience of searching for stores in the catalog using various filters (location, amount, store chain, etc.).
Possible privacy issues. Be sure to develop and provide users with a privacy policy.
As with any business solution, the creation of innovative tools for e-commerce purposes requires a preliminary assessment of potential problems and current market needs.
Getting the Most Out of Cashback Portals
The Lampa team creates customized software solutions that are ideally suited for any business, regardless of its complexity and specific requirements.
The world of loyalty programs is constantly evolving, and we implement the latest technologies to meet your needs and make your business even more successful.
Contact us for creation:
A cashback website with modern functionality that will ensure quick income generation with minimal effort.
A website with bonuses/loyalty points with accumulative reserves, tasks, terms of use, constant rating updates, etc.
A website with coupons/discount codes to increase the commission for advertising.
Product channels – a resource for advertising products that will allow you to receive significant commissions from each transaction that occurs thanks to your marketing content.
Browser extensions reduce the likelihood of API failures and increase the overall conversion rate, as well as improve UX and user experience.
Cashback apps for iOS and Android to expand your audience and integrate more affiliate programs.
Choose the best option, decide on the necessary features and design, and order the development of a promising product.
To Summarize
Is cashback worth it? It is really profitable to own a cashback service nowadays, given the popularity of such platforms among e-commerce businesses and their customers.
At Lampa Software, we've developed user-friendly and intuitive mobile apps for LetyShops on iOS and Android, enabling users to earn cashback on purchases from thousands of online retailers. Our apps streamline purchase tracking, offer comparison tools, enable one-click cashback activation, facilitate convenient withdrawals, and provide access to exclusive promotions and enhanced cashback rates. LetyShops apps offer a seamless and rewarding way to save on online shopping, optimizing the cashback experience. If you're looking to develop your own cashback platform or enhance an existing solution, Lampa Software's team is ready to assist with project implementation and growth.
Contact Lampa.dev if you need to create and maintain such a resource for your business. Get top-notch digital products and their timely release.
Use a comprehensive IT solution that will meet the expectations of your potential customers and ensure maximum profit for you.