1Assistant Professor, Jagan Institute of Management Studies (JIMS), sec-5, Rohini, Delhi-110085, deepika.saxena@jimsindia.org
2Associate Professor, Jagan Institute of Management Studies (JIMS), sec-5, Rohini, Delhi-110085, joshinavneet21@gmail.com
Online published on 15 February, 2019.
Cashback! A new buzzword in e-commerce industry which implies the repayment of a particular percentage of money spent on online purchases in the form of cash to the customers. Cashback websites provide customers a certain amount as cashback for their purchases at online shopping sites and tend to make money with the concept of affiliate marketing. The First Global Industry Research Report has identified 235 cashback industry leaders worldwide operating in mature markets like the UK and US as well as booming and developing markets like India, China, Southeast Asia and Latin America. The report has mentioned the presence of cashback leaders in the world including 51 US, 48 UK, 35 EU, 35 Indian, 19 SE Asian, 14 Australian, 12 Chinese, 12 Latin American and nine others have made a mark in the cashback industry. It is the fastest growing with $84 billion plus global industry which has a huge impact on the e-commerce and online retail strategies leading to convince customer to buy online. The present case study is of a new start-up, Cashnom.com – a cashback website, established in November 2015, got operational in January 2016. The study has shown the existing business model used by Cashnom.com and discussed its issues, challenges and their resolutions. Based on the resolutions a new business model has been proposed mentioning a wheel movement concept for generating customer base and profitability. Further areas of concern have also been discussed in the case study.
Cashback, cashnom.com, e-commerce, wheel movement concept, business model
