Raunak is not a technocrat or Management student with any high-profile degree where startups are being embedded in the curriculum. But he is a heterogeneous mix of talent, innovation and hard work. Raunak thought of taking an audacious move to do something different & innovative with a touch of technology and moreover which should connect people & their needs.This innovative mobile application FYOOL will provide an additional relief to the people in the form of additional purchases to save their hard-earned money spent on petrol, diesel, CNG & booze that too in a scenario where the economy has severely slowed down.
Increasing internet and mobile penetration, growing acceptability of online payments, favourable demographics, busy schedules and the current touch me not environment has provided the e-commerce sector in India the unique opportunity to fundamentally alter the way companies connect with their customers. The Indian e-commerce industry is up for a robust growth and will most likely cross the $ 100 billion mark over the next five years.
One of the key contributing factors taking this trend to the hilt is the unlimited coupons and cashback offers floated by various online stores and payment apps. These discounts are welcomed by both the parties as it loops in a wider customer base for the retailers, and is luring for the customers as they can buy their products at a more affordable price.
So, a cashback, quite simply, is a kind of incentive over and above the discount price offered to buyers as a reimbursement in their mobile wallets which they can use to either shop for products or for any other services; these encompass paying utility bills, and for mobile and data card recharges. While buyers have more cash in hand to shop, sellers get an opportunity to get another share of the consumer’s wallet.
How are the consumers benefiting?
The strategy of cash back and discount is simple and has a magnetic effect on the consumers. There are so many products and brands trending in the market however the product price balance is an issue at times making it a hindrance for the consumers to buy. And it is this gap that the cashback and coupons websites fill in.
With the cashback that the users receive in their digital wallets helps to overcome the price hurdle and users look forward to more shopping. As discount lures the customers and drives them to the online site, cashback and coupons ensure that the consistency and engagement remains. This is how cashback and coupons become significant.
Now there are innumerable websites and apps that are offering their cashback wallets, and it is apparent that customers will go for the one that will provide them with the highest saving offer. This is how customers are becoming smart shoppers and shopping more and spending less, after all it is their hard-earned cash.
Apart from the ingoing regular offers, the market also witnesses special holiday discount pop ups for the customers. From the beginning of the holiday season and in-between festivals, there is an outpour of cashback and coupon offers on top of discounts. Different segments like the fashion portals, gadgets website, automobile companies, home décor, makeup and skincare, even body and health brands are offering extra savings during certain occasions with the help of cashback wallets and coupons.
A win- win situation
The leading e-commerce players are appreciating the benefits of discount coupon and cashback sites as it has helped them to increase and retain an even bigger market share and keep pace with competitions. While the B2B transaction helps the cashback websites to earn a commission and from that, they are able to offer a percentage back to the shoppers in the form of cashback or rewards. With higher profit margins investments such as free shipping or free cash on delivery services have increased tremendously.
In the coming years the revenue from India’s e-commerce sector is expected to grow manifold. And undoubtedly such money saving trends have been playing a huge influence on the Indian e-commerce. They are the driving factor behind Indian e-commerce as this is what distinguishes between shopping online and offline.
As digitalization is the future, online wallets and cash payment apps are becoming more and more frequent. According to an Assocham-PWC India research by the year 2023, digital payments in India is expected to hit the amount of $135.2 billion, increasing at a rate of more than double when compared to this year’s $64.8 billion.
No looking back for the cash back and coupon industry
Cashback is the reigning king of Indian ecommerce marketing, while discounts attract shoppers, there is little that they do for customer retention. The consumers have become smart shoppers and know that a product is cheaper online than a regular shop has owing to the cashback and coupons; a consumer will identify the platform offering maximum rebate and shop there.
So, e-commerce platforms and the consumers both understand the importance of cashback and coupon model, hence the industry will continue to grow and the future is brighter than ever. Currently, the cashback and coupons marketplace are valued at over Rs. 500 crores and increasing.