Influence of Cashbacks on India’s Ecommerce Sector
Online shopping has become the most common among people of different age groups in today’s fast-paced digital world. People are working hard to find suitable products online at affordable prices. While every customer is trying to save maximum money on every purchase, it increases the value of the cashback voucher and payments app.
India is experiencing a dramatic change in its infrastructural and other economic advancements. Research states that India’s eCommerce sector is progressing at an excellent pace. In 2017, the country’s eCommerce sector stood at $38 billion, which will cross the $200 billion mark by 2026. Besides, the available data states that India would emerge as the second-largest e-commerce industry after the United States.
The introduction of cashback payment apps and coupons plays a significant role in shaping the Indian eCommerce sector. Large and small e-retailers offer heavy discounts on their products and services to attract more customers to their online store. Furthermore, these e-retailers connected themselves with other coupons and cashback websites, which lures more customers to visit their online platforms.
How has the cashback system changed the Indian e-commerce sector?
Benefiting the customers
With various products and brands in the market, the impulse to purchase is unavoidable. However, the pricing of the product often creates a huge hindrance. Most customers swear by the mantra of “a penny saved is a penny earned.” It is where the cashback coupons and payment apps come into play.
The e-retailers give considerable discounts to the customers through their e-wallets, which makes them continue their shopping spree. If a customer gets attracted to an online site, deals and cashback vouchers are excellent to retain their customers. Through the cashback system, the customers can save their hard-earned cash. Furthermore, besides regular offers, almost all eCommerce platforms provide special discounts on various holidays and festivals.
There is a surge of cashback vouchers offering top discounts from the beginning of the holiday season and even between the holidays. Fashion, gadgets, automobile companies, home décor, makeup, and skincare portals offer huge savings through cashback payment apps and vouchers during specific occasions.
The tie-up between giant retailers and cashback sites
With the increase in the growth of India’s eCommerce market, one can easily see the rising ties between the retailers and cashback sites. Online sites offer a commission to the vouchers and cashback sites depending on the number of customers visiting and purchasing from their platforms. Moreover, eCommerce platforms provide their customers with other benefits apart from cashback app, including free shipping or free cash on delivery services. Undoubtedly, the money-saving trends of the customers lead to the success of the Indian eCommerce market.
The success of the Small and Medium Enterprises (SMEs)
Today, more than 40 million SMEs are present all across the nation, making India on top of the entrepreneur platform. Moreover, most SMEs have their online presence, as it is easier to operate through a website than open an offline shop. Furthermore, SMEs have a unique way of creating brand recognition, as they enter into a partnership with various cashback and coupon websites. Undoubtedly, it is a risk-free and cost-effective method to build brand recognition and awareness among new audiences to market their products.
The future of the online cashback and coupon industry
Since both eCommerce platforms and the customers accepted the various advantages of the cashback model, the model’s future is brighter than before. Currently, the value of cashback vouchers is over INR 500 crores, which will keep on increasing. The cashback payment apps and coupons made the online products cheaper than those available in the offline market.
Both the eCommerce industry and cashback coupons are here to stay. Retailers are using these services even for their offline stores. It helps them to sell their products on both platforms. The dual approach earned a substantial amount of customers entering their stores.