ShopBack: How it Works and its Growth Story
If you love online shopping and want to save money, chances are you’ve heard of ShopBack. This cashback platform gives users discounts and monetary incentives when they shop at selected stores, and has become wildly popular among shoppers in Southeast Asia.
In this article, we’ll explore what ShopBack is, the company’s business model, and its growth story. ShopBack’s Business Model
ShopBack earns revenue through a few streams, primarily affiliate commissions, advertising, and transaction fees.
With affiliate commissions, ShopBack receives a percentage of the sale every time a user makes a purchase through their platform. Advertising is another way for ShopBack to earn revenue.
The platform allows merchants to advertise their products, and in turn, receive a fee. Transaction fees are charged to merchants as a commission for the transaction.
ShopBack carefully selects its partner merchants, and users can find deals ranging from fashion, travel, electronics, and more. The platform is free for users, and the cashback they earn can be deposited into their bank accounts or redeemed via vouchers.
ShopBack’s Growth Story
ShopBack was founded in 2014 in Singapore by Henry Chan and Joel Leong, with the goal of offering a platform that rewarded users for their online shopping. Chan and Leong saw a market gap in the Southeast Asian e-commerce industry, recognizing the need for a platform that would motivate users to shop and save money.
In 2015, ShopBack secured its seed round of funding and has since experienced rapid growth. The company expanded to Malaysia and the Philippines in 2015 and Indonesia in 2016.
ShopBack also launched in Taiwan and Thailand in 2017, and currently operates in seven countries across the region. ShopBack’s expansion was driven by key strategic initiatives, including mergers and acquisitions.
In 2017, the company acquired Seedly, Singapore’s leading personal finance management and investment tracking platform. The acquisition allowed ShopBack to offer users an even more comprehensive shopping experience, including personal finance management.
In 2018, ShopBack secured a Series B funding round, raising $45 million from investors. The funds were earmarked for further expansion into new regions, as well as to enhance the company’s technology and product offerings.
Today, ShopBack has over 19 million users and over 2,500 merchants on its platform, making it one of the most popular cashback platforms in the region. In addition to its online offerings, ShopBack has also launched its mobile app, making it even more convenient for users to shop and save.
Conclusion
In conclusion, ShopBack’s business model has been successful thanks to a careful selection of partner merchants, multiple revenue streams, and a free platform for users. Its growth story highlights key strategic initiatives, such as mergers and acquisitions, as well as secured funding to continue expansion.
As it continues to grow, ShopBack’s success is a testament to the value of providing monetary incentives to both users and merchants. ShopBack: How it Works and its Revenue Streams
ShopBack has become Southeast Asia’s leading cashback platform, offering its users a simple mechanism to save money while shopping online.
Users can earn cashback rewards with each purchase made through the platform, and can choose to redeem them for promo codes or gift cards. In this article, we’ll explore how ShopBack works and its revenue streams, including its payment services platform, ShopBack Pay.
How ShopBack Works
ShopBack operates by partnering with popular online stores across various verticals, including fashion, home decor, travel, and more. When a user shops at a partner store through ShopBack, they earn cashback rewards that are deposited into their ShopBack account.
Users can redeem their rewards for promo codes or gift cards from partner stores, or even cash them out via their bank accounts. ShopBack has partnered with more than 2,500 stores, including well-known brands like Lazada, Zalora, and Agoda.
Users can search for stores on the platform to check if they offer cashback rewards. Apart from cashback rewards, ShopBack also offers exclusive promo codes for its users to enjoy discounts on their orders.
These promo codes are provided by partner stores and are updated regularly to ensure their validity. ShopBack Payment Services: ShopBack Pay and ShopBack Go
In addition to its cashback platform, ShopBack has also launched its payment services platform, ShopBack Pay.
ShopBack Pay allows users to store their credit/debit card details on the platform, making it more convenient for them to make online purchases without having to manually enter their payment information each time.
ShopBack Pay also offers a PayLater option, which allows users to make purchases and pay for them in installments.
The PayLater option charges a late payment penalty when payments are overdue. ShopBack has also launched ShopBack Go, a payment service that is targeted at offline merchants.
ShopBack Go allows users to make payments at participating physical stores and earn cashback rewards. This offering allows ShopBack to tap into the offline retail market and increase its revenue sources.
ShopBack Revenue Streams
ShopBack earns its revenue by charging merchants affiliate commissions, referral fees, and advertising fees. When a user makes a purchase on a partner store after clicking through to it from the ShopBack platform, the merchant pays ShopBack a percentage of the sale as an affiliate commission.
ShopBack also earns revenue through referral fees when a user refers a friend to the platform. When the friend signs up and makes a purchase, both parties earn cashback rewards, and ShopBack receives a referral fee.
Advertising is another source of revenue for ShopBack. Merchants can advertise their products on the platform and pay a fee to ShopBack for the exposure.
Apart from these revenue streams, ShopBack also earns transaction fees from its payment services platform. For example, ShopBack Pay charges a transaction fee to merchants when a user makes a purchase using their service.
ShopBack’s business model is designed to provide value to both its users and merchants. The cashback rewards, promo codes, and payment services provided by ShopBack incentivize users to shop on their platform, while merchants benefit from increased sales and exposure.
The company’s strategy of continually expanding to new markets and launching new products and services provides opportunities for revenue growth.
Conclusion
In conclusion, ShopBack’s revenue streams are diverse, with multiple sources providing stable income for the company. Affiliate commissions and referral fees are key to the company’s revenue, as they drive purchases on the platform.
Advertising provides additional revenue, while transaction fees from ShopBack Pay, among other payment services platforms, offer further diversification. With its proven business model and a strong presence in Southeast Asia, ShopBack is well-positioned to continue to grow and diversify its revenue streams.
ShopBack: Its Funding and
Future Strategy
ShopBack’s rapid growth in the Southeast Asian market has attracted a lot of attention from investors, resulting in several funding rounds and a significant increase in valuation. Its innovative business model, coupled with its expansion into new markets and its payment initiatives, has positioned ShopBack for continued growth.
In this article, we’ll explore ShopBack’s funding history, future growth strategy, and how the company plans to continue expanding its member base.
Funding and Valuation
Since its founding in 2014, ShopBack has secured several funding rounds from prominent investors in the region, including Rakuten, EDBI, and Temasek, among others. In 2018, ShopBack raised $45 million in a Series B funding round, which increased the company’s valuation beyond $200 million.
ShopBack’s funding rounds have been driven by its impressive revenue growth. In 2019, the company’s revenue almost doubled from the previous year, indicating the effectiveness of its business model in the region.
The funds from the various funding rounds have been used to finance the company’s expansion plans and to improve its technology and product offerings.
Growth and Expansion
ShopBack’s future strategy revolves around further growth and expansion. The company aims to increase its member base and expand into new markets, with plans to launch in Vietnam, South Korea, and Japan.
ShopBack also intends to enhance its payment initiatives, which include its PayLater option and ShopBack Pay, among others. To support its growth strategy, ShopBack has also entered into several partnerships, such as those with CitiBank and Microsoft.
The company’s collaborations with these industry players enable ShopBack to leverage their existing customer base and drive more traffic to their platform. ShopBack recently launched a new feature called “ShopBack Together,” which allows users to pool their cashback rewards together with their friends.
The company hopes that this new feature will encourage users to invite their friends to join the platform, thereby increasing the size of its member base and driving more sales.
Member Base
ShopBack’s innovative business model has been a key driver of its growth and market expansion. The platform’s cashback rewards, promo codes, and payment services offering incentivize users to shop on the platform, increasing the company’s member base.
ShopBack has seen significant growth in its member base, with over 19 million users across its seven operating countries. The company aims to continue to increase its member base by offering personalized experiences and expanding its product offerings.
Future Strategy
ShopBack’s future strategy focuses on enhancing its existing products and services and launching new ones to drive revenue growth. The company aims to increase its market share in the region by focusing on user acquisition and retention.
ShopBack is planning to launch a subscription service, which would offer users exclusive deals, discounts, and cashback rewards for a monthly fee. The company intends to leverage its expanding base to market the service further and generate recurring revenue.
The company is also looking into additional payment services to offer its users, including incorporating cryptocurrency as a payment method. By diversifying its payment offerings, ShopBack hopes to create further avenues for revenue.
Conclusion
In conclusion, ShopBack’s innovative business model, payment initiatives, and market expansion strategy have positioned the company for rapid growth in the Southeast Asian market. Its ability to secure funding from prominent investors and increase its valuation is a testament to the effectiveness of its business model.
With new product offerings such as ShopBack Together and future plans for a subscription service, the company is looking to increase growth even further. Therefore, ShopBack’s future is poised for continued success in the region.
In summary, ShopBack’s cashback platform has become a successful business model in the Southeast Asian market, earning revenue through various streams, including affiliate commissions, referral fees, and advertising. The company’s unrelenting growth and expansion have been driven by key strategic initiatives, including mergers and acquisitions and securing funding from investors.
Its payment services platform, ShopBack Pay, and ShopBack Go, the latter designed for offline retailers, further diversify revenue sources. With its dedication to user acquisition and an expanding member base, the company is well-positioned for growth, with plans to launch new products and services that will drive revenue growth in the future.
ShopBack’s growth story and effective business model serve as an inspiration for entrepreneurs who seek to establish a successful e-commerce platform, optimizing revenue streams for long-term success.