| 3 minutes read

3 minutes read

How Cashbacks Are Changing Shopping Habits in India

| Published on March 6, 2018

Digitalisation has transformed Indian business in a big manner. A lot of people these days love to explore products on e-commerce websites and buy them at discounted prices. The main reason why customers are using online apps is due to the cashbacks they get on purchasing.


How cashbacks encourage customers to buy more things?

Cashbacks make the customer buy more things than one needs. In a way, it is increasing sales of the products which used to get ignored. Also, companies now keep a minimum purchasing amount for getting cashbacks and this urges the buyer to add more things while shopping online. Ticket selling services like Bookmyshow also know how Indians think. Many people have started to buy movie and event tickets online because they get discounts and cashbacks in their wallets. Customers tend to make multiple accounts just for the sake of getting discounts.

Sometimes these platforms play a very clever game by allowing only a certain percentage of cash back to use while doing purchasing. To use these leftovers customers comes again to use the app and buys more things. This has become an old tactic but is still working in the Indian market.

Benefits to online selling companies

Cashbacks have changed the expectations and behaviour of customers in the online shopping world. Earlier, shoppers were only interested in buying things for their needs. But now, the online buyers see e-commerce websites with an aim to get maximum discounts.


There are many websites which provide coupon codes and tricks for getting cashbacks. Buyers use these websites and get discounts easily. Companies and banks make deals with the online selling websites to encourage using the debit and credit cards of specified banks and by allowing users to get cashbacks the customers get the benefit.

Cashbacks are a way to attract customers, but buyers don’t see this trap and they end up in buying things which they rarely use. If we do the total of the money available in the wallets of online platforms, a huge amount of money is available in these wallets through which companies earn interests.
It will be interesting to see that how Indian e-commerce sector will look like after the KVC process will be completed.

Also Read: Most Digital Wallets in India Can Lose 90% Of Their Users- Here’s Why

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