1. Purpose of Cashback Policy
To attract new customers, increase repeat purchases, boost order value, and build loyalty without giving heavy discounts upfront.
⸻
⭐ 2. Types of Cashback You Can Offer
A. Percentage-Based Cashback
• Ex: 5%–15% cashback on every order
• Works best for ongoing promotions
• Encourages customers to shop more frequently
B. Slab-Based Cashback (Cart Value Driven)
• Ex:
• ₹999–₹1999 → 5% cashback
• ₹2000–₹3999 → 10% cashback
• Above ₹4000 → 15% cashback
• Motivates customers to increase cart size
C. First-Time Buyer Cashback
• Flat ₹100–₹250 cashback for first purchase
• Helps convert new visitors into customers
D. Prepaid Order Cashback
• Give extra cashback on prepaid payments vs COD
• Encourages online payments and reduces RTO losses
E. Festival / Flash Sale Cashback
• Limited-time offers (24–72 hours)
• Creates urgency and boosts conversion
⸻
🛒 3. Cashback Redemption Rules
✔ Minimum Redemption Value
• Customer can redeem cashback only on orders above ₹999 or ₹1499
• Helps maintain revenue margin
✔ Cashback Validity
• Valid for 30–60 days
• Encourages quicker repeat orders
✔ Non-Transferable
• Cashback cannot be exchanged for cash
• Can be used only on your website/app
✔ Not Applicable With Other Coupons
• Protects you from double-discount losses
⸻
🧾 4. Where Cashback Will Show
• Create a Wallet or Points System on your website
• After order delivery, cashback gets credited in the customer account
• Show wallet balance at checkout to increase redemption rate
⸻
🔐 5. Conditions & Exceptions
• No cashback for cancelled orders
• If partial return → cashback adjusts proportionally
• For prepaid bonus → refund only original paid amount (not cashback)
⸻
📈 6. Suggestions to Make Cashback More Effective
⭐ A. Keep Cashback Subtle, Not Huge
Customers value even 5–10% cashback. You don’t need heavy giveaways.
⭐ B. Use it to Push Slow-Moving Inventory
Offer higher cashback on selected products to clear inventory.
⭐ C. Add a Loyalty Tier System
• Silver – 2%
• Gold – 5%
• Platinum – 10%
Helps retain long-term customers.
⭐ D. Use Personalized Cashback
Send special cashback to customers who haven’t purchased for 30–60 days.
⭐ E. Promote Cashback Everywhere
• Product pages
• Checkout
• Pop-ups
• Instagram stories & highlights..