Cashback websites: Important yet lesser-focused channel by small businesses to boost growth

September 26, 2019 2:19 PM

Cashback websites help drive sales, gain traction in terms of shoppers and offer the brand a lot more visibility.

Cashback websites have predefined budgets to promote retailer offers and deals. (Image for representation)
  • By Swati Bhargava

Most businesses start small. To make it big in any business, it is important to acquire new customers quickly and at scale; while keeping costs as low as possible. Today, when we use the word ‘business’, it often refers more to online and app-based enterprises than traditional brick and mortar setups. In fact, the global e-commerce industry is expected to grow at a CAGR of more than 20 per cent by the end of 2022. India being the third-largest consumer market in the world, contributes massively to the growth of these small and medium e-commerce businesses.

That is why everyone is seeking a fast and efficient deal distribution system. It is in this environment that cashback sites gain importance. Essentially, cashback sites have a simple and performance-driven business model. They receive a commission from the retailer only after a sale takes place. A portion of this commission is then passed on to the user as cashback. This works exceptionally well for small businesses by helping limit their marketing spends while receiving great returns on their investment. It works for the user as well because most cashback websites charge only a small joining fee, while others are free to join.

Simply put, a cashback website helps drive sales, gain traction in terms of shoppers and offers the brand a lot more visibility. Let’s look at a few ways how cashback websites help drive sales for small businesses in a little more detail.


Cashback websites have predefined budgets to promote retailer offers and deals. This helps brands get more traction as cashback sites promote deals until their budget is consumed. A cashback site will often promote a new brand through their blogs, social media and video content. All this is free of cost to the retailer and provides them with free visibility. In addition to this, a new brand often gets exposure alongside more established players, which is a great way to gain consumer trust.


Since the retailer is not bound to pay any money for brand visibility, the affiliate gets paid only when a sale happens. Cashback websites offer a lot of benefits to retailers from the search engine optimisation (SEO), promotion, education and marketing points of view which they do not charge for. This makes them completely performance-driven and ideal for small and big brands alike.

Also read: Benefiting small businesses in global trade from Chinese slowdown; how clusters can play important role

Customer Acquisition

Acquiring the initial set of customers may take a lot of time and money. But affiliate marketing helps a business acquire loyal customers quickly and at a minimal cost. When compared to other paid social channels, most companies still choose to boost customer acquisition using affiliate marketing. By using targeted promotions, a cashback website helps reach out to a specific audience who has shown a tendency to shop for a retailer’s product or through their competitor’s website.

Customer Attention

By offering the brand more exposure in the industry, cashback websites can even pull new customers towards the brand. Affiliate websites act as a powerful marketing tool to grab the attention of the customers who are searching for products on similar websites or those engaged with the business’ competitors. This can further direct the internet-savvy shoppers towards new brands and their differentiated products well after the performance marketing campaign ends.

Conversion Rates

Statistics show that 79 per cent of marketers uses affiliate marketing to drive conversions and increase their sales. Working towards a similar goal, cashback websites offer crazy rewards and super saver deals to customers. As a user is directed towards the retailers through these cashback websites, there are high chances of conversion of this potential buyer into an actual buyer.

Educating Customers

A cashback website can also effectively educate customers about a brand. This is mostly done using traditional marketing channels such as email and SMS or through WhatsApp and influencer marketing by collaborating with influencers. These influencers act as key opinion leaders and affect the choices and decisions of the customers. Acting as a mediator between the business and the consumer, these influencers can alleviate the social media visibility of the business, quickly engage the shoppers and direct them towards the end-destination.

Deal Distribution Network

Cashback websites are constantly trying to delve deeper and evolve the culture of online shopping. Since social media is such a crucial part of most people’s lives these sites use multiple channels as deal distribution networks.

(Swati Bhargava is the Co-Founder at CashKaro. Views expressed are the author’s own.)

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1IBM’s Ajay Mittal: MSMEs not far behind in tech adoption, it’s just that focus areas, scale are smaller
2Foreign listing of Indian startups: Whether exit window for Chinese investors?
3Logistics roadblocks amid festive rush: How MSMEs can ace managing inventory and warehouse, goods safety