Fashionism.com, is offering its shoppers a percentage of the purchase or promotional codes as a reward to customers buying full price. The new online marketplace is offering incentives to shoppers who want products immediately, rather than waiting until there is a sale, therefore benefitting the brand.
Founder Anthony Khera, said the site negotiates a commission rate with the brands, then passes a percentage back to its customers, reported Women's Wear Daily. The average savings is 7 percent, but some rewards go as high as 20 percent if brands are looking to move inventory.
About 200 brands participate on the site including Sephora, Saks Fifth Avenue (NYSE:HBC), Helmut Lang and Bloomingdales. The average customer order totals $350 and about 75 percent of first-time shoppers return to the site to make another purchase within a month.
Reaping rewards is easy. Rewards are put into a shopper's account until it reaches $100. Then the funds are transferred to a PayPal account.
"Through our research of the affluent buyer, good value for the money is more important than the price. They're going to buy anyway, and they like to be rewarded for what they spend," Khera told Women's Wear Daily.
As a bonus, Fashionism makes a donation to Feeding America for every transaction.
Cash back rewards is a growing trend for online shopping sites. Last week ShopForCash launched an online shopping mall that offers shoppers cash-back rewards with more than 5,000 U.S. retailers including big names such as Walmart (NYSE:WMT), Home Depot (NYSE:HD), Office Depot (NYSE:ODP), Dell, Nordstrom (NYSE:JWN) and Macy's (NYSE:M).
Similarly, digital identity solution provider ID.me recently unveiled a new retail rewards program that offers shoppers cash and prizes for gaming.
-See this Women's Wear Daily article
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