What is cashback?
Cashback appeared in the late 1990s. It was developed by the American company Ebates and over time gained a large market share.

Cashback is an English term meaning money back. In fact, it includes a program that returns to the customer a percentage of the amount spent on the product or service.

Therefore, it is a feature that has fallen out of favor with consumers, but offers huge benefits for e-commerce. How does cashback work?
Cashback is easy. Basically, the more customers buy from your e-commerce, the more value you create. Thus, you can use them for new purchases. As there are many types of cashback, the cashback ratio and methods of use can be according to the specific rules of each platform. But in general it works like this

The customer enters the e-commerce with a cashback.
He buys a product.
After completing the purchase, the platform receives a commission.
The commission is shared with consumers, and they receive a certain percentage of the returns.
When the minimum return amount is reached, the customer can either make a new purchase or credit the amount to their account. In other words, we can say that cashback is a partnership between an e-commerce and a platform that makes requests and offers refunds to customers.

Why is cashback an important strategy? Any e-commerce that offers a difference and benefits to society is more likely to convert sales and become a reference in the market. But, above all, it is a factor that helps to overcome competitiveness and maintain positive results. Cashback is an important tool in this context, as it can encourage new purchases. After all, one of the aspects that influences the purchasing decision is to determine that special conditions are available. Therefore, cashback is a strategy that demonstrates that e-commerce is concerned with providing a satisfactory customer experience, not just making a sale.

How can I embrace the cashback trend in e-commerce? Cashback is a great strategy to increase sales. But it is still a procedure that should be applied with care, taking into account the objectives and characteristics of your e-commerce business. What to consider in your e-commerce?
Define the main objective: This is the first step to make your cashback program compatible with your e-commerce. You must define whether the objective is to increase sales or to build loyalty.

Determine the expiration dates: The expiration dates of the program and the use of cashback values are critical to avoid losses and compromise customer satisfaction. So think carefully and choose a plan that encourages customers to buy from you.