First launched in Singapore in 2014, ShopBack has a fairly straightforward concept. Shoppers make a purchase at any merchants redirected from ShopBack to get back a percentage of each spending. ShopBack earns commission from their merchants for every successful transaction. These commissions are then split with the shoppers, essentially paying shoppers to shop.
Following his success at Lazada and Uber, Kawin Prachanukul, the Co-founder and Country Head of ShopBack Thailand, highlights how the country is more than ready for this new e-commerce concept.
"Online shopping in Thailand isn't a trend. It's part of the everyday retail culture in 2017. We're discovering ways to connect merchants and shoppers in a way that creates added value for both parties. Shoppers get paid for every purchase made from any of the 1,300 online merchants redirected from ShopBack. ShopBack is a loyalty reward system across all e-commerce verticals that pays you cash for making online purchases."
"Payments given to the shoppers are accumulated in a ShopBack e-wallet, which can then be transferred into their own bank accounts. ShopBack has paid their customers over USD 10 million regionally."
Kawin highlights the bene?ts of this mutually bene?cial reward system.
"Sales and marketing have moved on. Today, e-commerce is all about satisfying shoppers' demands via a convenient platform that not only gives them what they want, but rewarding shoppers for their loyalty. Merchants with a presence on ShopBack can bene?t from the combined power of being present alongside other types of merchants. As a result, a variety of shoppers with different pro?les will be attracted to the platform, expanding merchants' exposure beyond their respective verticals."
More than 1,300 merchants are integrated in ShopBack sites, with over 100 local and international merchants on the Thai site as of the launch. These include leading online travel booking websites Expedia and Booking.com, French beauty merchant Sephora, Southeast Asia's leading online shopping platform Lazada, transport apps Grab and Uber and many more. Shoppers can get up to 30% Cashback depending on individual merchants.
The of?cial launch of ShopBack in Thailand is headlined by the Let's ShopBack 2017 Promotion running from 13 July – 9 August 2017. Users can earn up to 50% Cashback from top merchants such as Lazada, Sephora, Pomelo, Expedia, Eatigo, Uber and Grab; with a supersized Cashback for Visa cardholders of up to 5% Cashback on top of the standard percentage.
The campaign includes week-long promotions on electronics from 20-26 July 2017, fashion and beauty from 27July-2 August 2017 and food and travel from 3-9 August 2017.
According to Kawin, ShopBack is a game-changer for retail.
"Particularly for millennials who enjoy shopping online, ShopBack rede?nes the shopping experience, adding extra value and influencing shopper's behaviour. The regional success of ShopBack is proof that the Cashback platform appeals to shoppers who want the convenience of ordering online and appreciate the added Cashback incentive."
The stacked approach of ShopBack means that the Cashback mechanism operates independently from merchants' discounts, voucher codes or offers. ShopBack's all-inclusive concept differentiates itself from online group buying sites or credit card rebates, which are typically limited by availability (e.g. discounts valid within a limited timeframe) and types of purchase (e.g. deals that are only applicable for speci?c items). With ShopBack, Cashback earned is transferrable to shoppers' bank accounts as cold, hard cash.
Merchants featured on ShopBack are able to unite under one powerful online engager and convert shoppers' interests into e-purchases with minimum overheads, as well as promote new products and recommend purchases to shoppers.
According to Pomelo, a dynamic leading online fashion brand, there is a need for merchants to seek out fast-moving revenue streams online.
"I've found ShopBack to be an exciting solution for all e-commerce companies today, both big and large. By working closely with ShopBack, we've found a strategy that works for Pomelo and we're excited to work together to carry our brand to the next level. Partnering ShopBack is a great way to maintain our leadership position in the fast-moving fashion e-commerce space," said David Jou, Co-founder of Pomelo.
The online Cashback mechanism is widely popular in the US, but it is still emerging in Southeast Asia. Regionally, the launch of ShopBack Thailand will be the sixth localised site, following locations in Indonesia, Singapore, Malaysia, the Philippines and Taiwan.
With over three million ShopBack users regionally, the start-up closes at least 1,000 orders per hour. With internet access set to triple by 2025 to some 600 million users and e-commerce sales expected to soar in the region from USD5.5 billion in 2015 to around USD88 billion by 2025*, ShopBack is committed to extend and expand its suite of services to bene?t shoppers in the region.