Joey Lim from coupon-cashback site ShopBack Singapore explains how cashback websites are changing the way South-East Asians shop online. ShopBack is one of the largest coupon-cashback websites in the South-East Asian region.
Online shopping has redefined retail and changed the way people spend their money. With more and more online shoppers cashing in on the cashback trend, shopping habits have evolved further beyond simple price comparison between online shops. Shoppers are now counting on the magic combination of letters and numbers that form coupon codes to help them save money on their online purchases.
While cashback websites are not exactly the latest response to the online shopping boom, they are relatively new in South-East Asia where the number of online shoppers is steadily increasing each day, thanks to rising affluence and access to technology. These cashback websites are simple to understand: they partner with hundreds of merchants and secure a certain percentage of cashback for shoppers who click through them. The only change is the point of access to the desired shop page – after that it’s just the wait to see money flow back into your bank account.
Uncertainty and Unfamiliarity
In a BBC News article “Cashback websites: How do they work?”, Burns addresses the doubts of consumers, many of whom are wary and suspicious of the promises that these cashback websites make. In response to consumer accusations of money delay and obscure placement of information, she cites Quidco’s managing director Andy Oldham, who admits that there is cause to reconsider how important details like cashback percentage and timeline are presented on the website. Quidco is one of the biggest cashback sites in the UK, with 2 million members and counting.
“It all sounds too good to be true” seems to be the common consensus amongst online shoppers. Such hesitation and misunderstanding could potentially hurt profits but cashback websites are already one step ahead of consumers; many are doubling efforts to make their website layout as simple as possible to suggest clarity and transparency. Prominently displayed video tutorials, reviews and visual guides are just some of the several methods employed to assuage consumers’ fears and make online shopping more enjoyable.
That being said, we understand how many online shoppers can get overwhelmed by the multitude of choices that the cyberworld of shopping offers – it’s a game of meticulousness, powered by the desire to get the best deal. Price comparison online can be tedious but add another few cashback websites to study and most are ready to give up. To prevent yourself from burning out before you even begin to cash in, Sarah Pennells from savvywoman has collated some of the main considerations when looking for cashback sites, as condensed here:
- Percentage of cashback and merchant variety
- Possible membership fees
- How quickly you’ll be paid your cashback
- How much cashback you have to earn before you’re paid
- How you’re paid
Not all cashback sites are created equal so it’s definitely worth your time doing a little research to find out which ones are most suitable for your intended purchase. Some collaborate with the same merchant, but offer different cashback rates, so be sure to hunt down the one that will help you save the most.
Shopping Smart but Safe
When in doubt about a certain cashback website, Williams from US News suggests googling for reviews and complaints. Chances are, other people have already used their services and can give an honest review of the site – whether it’s the real deal or just a potato chip bag half-full of air, promising everything but delivering lesser than expected. Another warning from his article – “If you go to a cash-back site once and make a tiny purchase but never shop there again, you may never see your money”. It’s important to understand the math behind the business. Big purchases like plane tickets are guaranteed to give you a substantial amount of cash back in just one bill while shopping for clothes once may not be enough to reach the minimum cashback threshold.
Keeping all this in mind, cashback sites can really help shoppers accumulate substantial savings in the long run, especially those who shop online often. If the bulk of your buys are made online, consider using a cashback site to help you stretch your dollar – you’ll have less problems sticking to your budget because of all the little savings. Results may not be as fast but slowly and surely your savings from discounts will increase.
Everyone’s Cashing In
The steady rise of cashback websites in South-East Asia marks a concrete change in the expectations of local consumers. Regular sales just aren’t enough anymore – people want bigger discounts, better deals and the best price possible for even small purchases. It’s a competitive market but no doubt a lucrative one, if cashback companies know how to manage consumer demands. It’s all about the extra mile now, with sleek user-friendly web designs and excellent customer service to cater to the growing number of shoppers interested in the concept. The challenge for these businesses is to differentiate themselves from others; to constantly renew and improve to stay ahead of competition and meet consumer needs.
The verdict’s out: Cashback websites are here to stay and both companies and consumers stand to benefit. With some foresight for companies and savvy discernment on the part of consumers, the e-commerce cashback industry looks set to get bigger and produce more impressive results. If you’re curious to find out more about cashback rebates, here’s an introductory video on how ShopBack works:
(This post is brought to you by Shopback Singapore)