Ebay, an online auction and shopping website, is trying everything to keep shoppers’ interest intact in the online shopping portal. eBay has announced its first-ever free Rewards Program in an effort to increase both sales and the number of shoppers. The newly launched program will offer 2% cash back to all eBay shoppers who will make payments through Paypal.
eBay Bucks: First-Ever Free Rewards Program
Currently, the eBay rewards program is applicable only to US citizens but soon has wings for other countries. eBay’s first rewards program will be called eBay Bucks, in a long line of efforts to boost buying on its core site, which the company has said is in the midst of a “multiyear turnaround.”
In a statement, Lorrie Norrington, president of eBay Marketplaces, said “We’re giving eBay’s most loyal shoppers something special in return — money to spend on eBay,”
Like any other rewards programs, there are also a few fine prints: Shoppers will be credited only after a quarter against the credit accumulated in the whole 3 months. Once it becomes available in the account, shoppers need to utilize this within the next 30 days and can be used only for eBay purchases made with PayPal. There’s a $500 cap on credits that can be earned per quarter, and most — but not all — items on eBay qualify. (Exceptions include real estate, cars, and items from eBay’s classifieds.)
eBay said, “company has recorded higher sales volume through a test of reward program floated one year back”. Excited with such results now the company is all set to launch this feature for all US shoppers and soon to be available for many other countries.
The company further said, “customers who enrolled in eBay Bucks spent five times more on eBay than those who didn’t enroll”. The company emphasized that sellers on eBay would benefit from buyers who made more purchases as a result of the program — and that sellers wouldn’t have to bear the cost or see changes in fees.
eBay sees the program as moving marketing expenditures from acquiring new buyers to rewarding existing buyers, the company said on its website, indicating that eBay might see current buyers as a richer source of revenue than people who haven’t bought on eBay before.