The E-commerce industry has been growing tremendously in Vietnam in recent years. In order to meet the need of online shoppers, the cashback model has been developed and having rabbit growth in new monthly users.
Vietnam saw strong growth in online spend in 2020
Online Shoppers in Vietnamese is growing at a fast rate in 2020 compared with the previous years, of which the percentage of monthly online users has risen from 47% in 2019 to 61% in 2020, according to the latest survey conducted by Asia Plus Inc., the Asia and ASEAN market research company.
As a result of the pandemic, online consumption habits in Vietnam have changed significantly, with a greater proportion of internet users buying essential products, such as food and beverages, cosmetics, and medicines.
Regarding e-commerce platforms survey: Shopee, with more than 62 million web visits per month, Tiki – more than 22,5 million web visits, Lazada – 20 million web visits and Sendo has 14 million web visits. Shopee increased its popularity in online shopping due to the strong pricing and product varieties, with good fun shopping images.
Cashback – a powerful incentive for consumers to spend more on online shopping sites
As a fast-growing online shopping volume and the challenging period of the epidemic. Online shoppers look to cut costs and maximize savings. To meet this demand, the cashback model has recently emerged popular.
Cashback is a business-to-consumer e-commerce model that enterprises and service providers use to increase customer loyalty and reach out to more customers by offering users a reward when they make a purchase or refer new customers to the cashback websites or apps.
Research shows cashback is a powerful incentive for consumers to return, often within a week of receiving their cashback rewards, to spend more on their favorite online shopping sites. Cashback promotions caused a 3.4 times lift in conversion rate and an average order value increase of 46% (from $76 to $106) according to research.
Shopback was considered a successful case in this field and was launched in Beta at the end of 2019, and since has acquired over 150 merchants and around 800,000 users. The firm has seen consistent month-on-month growth of over 150 percent in sales and over 150 percent in orders this year. To date, VND4 billion ($172 million) has been given out to ShopBack users in Vietnam.
As the same model as Shopback, Catback emerged as a cashback platform that helps online shoppers earn up to 25 percent cashback which is the highest rate in the marketplace, and linking with more than 100+ top merchants in Vietnam such as Tiki, Lazada, Shopee, Sendo, PNJ,…
In order to optimize user experiences, Catback operates in both platforms: App and website to increase the convenience for the users. Catback also offers regularly updated Flashsale programs on the E-commerce site: Shopee, Lazada, and the latest discount codes that are updated on a daily basis.