Indians – Will you donate your CashBack?
Today’s post is inspired by Operation
Sulaimani and a heart to heart discussion with my 12 year old son along
with his cousins.
Ganesh Chaturhti
season is over. Shopping volumes zoom during Dusshera and Diwali
festivals.
All eCommerce players have expanded
their portfolio range and strengthened their delivery channels.
The key tool to attract shoppers is
the ‘CashBack’, schemes.
Q:
What is ‘CashBack’?
Ans:
In simple terms, ‘CASHBACK’ means credit back of some percentage of the buying
price to the buyers account.
These
‘CASHBACK’ can be utilised for future purchases on participating sites.
Q:
Which is better ‘CASHBACK’ or ‘Discount?”
Ans:
Customer angle: Discount, as the benefit
is immediately visible and he/she need not shop on the same sites once again.
eCommerce
Site angle: ‘CASHBACK’ as, ‘CASHBACK’ increases the stickiness quotient of
customers coming back.
Q:
What is the major drawback of ‘CASHBACK’?
Ans:
‘CASHBACK’ expires if not utilised within specified period. This period differs
from site to site.
Q:
What is the alternate to avoid expiration of ‘CASHBACK’?
Ans:
Facility to donate the ‘CASHBACK’ to NGOs
Q:
Can a part of existing ‘CashBack’, also be donated.
Ans:
Yes, the eCommerce sites should design their payment page accordingly.
Q:
What type of NGOs would be willing to receive ‘CASHBACK’ Donations?
Ans:
Any NGO working in the area of food distribution, Old Age Homes, Orphanages etc
Q:
How can eCommerce sites choose the NGOs?
Ans:
Separate extensive due diligence need not be done by eCommerce sites.
They
can choose from the list Ramon Magsaysay
Awardees
winners or Padma
Award winners
Crowd
Funding sites too are good option
I am expanding the above idea into a fully
fledged business proposal to submit to The Economic Times Power of Ideas, India’s
largest entrepreneurship program
Nine
benefits of donating ‘CASHBACK’ :
01)
The ‘CASHBACK’
is the property of buyers and the sellers hold the same in good faith
02)
No
financial loss to the buyers as the full price of the article is already paid
by them.
03)
Psychological
satisfaction of contributing their bit to the public at large
04)
Part
of ‘CASHBACK’ at the time of the payment
can be split amongst the buyers wallet and NGO wallet
05)
No
loss to eCommerce site, as the ‘CASHBACK’ is already factored in their books.
06)
Increase
customer retention levels, as customers would prefer to complete their
purchases on eCommerce sites offering the best ‘CASHBACK’ transfer options.
07)
Increase
of sales, as NGOs will be interested to immediately purchase through the ‘CASHBACK’ credits in their
wallets
08)
A
differentiator tool for eCommerce sites in their branding exercise
09)
A new
stream of donations to the NGOs
INR
2,000 Crores
to be distributed through CashBack
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