In today’s digital-first retail world, smaller brands often face tough competition against industry giants with massive marketing budgets. With advertising costs rising across platforms, it’s getting harder for smaller ecommerce businesses to drive sales and grow in a cost-effective way.
One affordable strategy that can help upstart brands is affiliate marketing. This model allows online retailers to partner with website publishers that have relevant content and an audience to match. Retailers only pay publishers when a sale happens, usually as a commission based on a percentage of the sale. This makes affiliate marketing a low-risk, high-reward strategy for smaller brands to grow without the high upfront costs of traditional advertising.
A specific form of affiliate marketing is cashback rewards programs, such as Rakuten, PayPal Honey, and Capital One Shopping. These programs act as publishers in the affiliate marketing model and reward customers with a small percentage of the sales made through their platform. By teaming up with these cashback programs, smaller retailers can reach cost-conscious consumers without blowing their budgets.
However, some smaller online retailers worry that browser extensions like cashback tools might hurt their brand’s reputation, control over pricing, or margins. These concerns are understandable, but if a brand already offers an affiliate program, they are likely already factoring in commission payments into their pricing. Cashback rewards are simply paid to customers from the commissions publishers earn on sales. Even luxury brands are starting to offer cashback rewards, indicating that this method doesn’t devalue a product’s image.
Why Consumers Love Browser Extensions
Consumers are increasingly interested in saving money while shopping. A 2024 survey by Wildfire found that 77% of consumers are more interested in earning cashback rewards, and 72% are more inclined to use coupons and discounts when shopping online. These tools have become an essential part of the online shopping experience.
In fact, 27% of consumers used cashback browser extensions more this year than in the previous year, and 70% of those who have installed a browser extension use it frequently for cashback rewards. These extensions don’t just provide discounts — they also help build consumer confidence. According to the survey:
- 86% of respondents found offers in their extension to be valuable.
- 84% trusted the offers they received.
- 83% saved time by using coupons within their extension.
For small and mid-sized retailers, offering deals via browser extensions can ensure consumers feel good about their purchase, which can lead to higher conversion rates.
How Browser Extensions Benefit Merchants
One common concern for smaller brands is that offering cashback via browser extensions might reduce the perceived value of their products. However, research shows that cashback browser extensions can actually help merchants increase their reach and sales.
According to Wildfire’s 2024 survey, and a 2023 study by CJ and Namogoo across 67 million shopping journeys:
- Improved merchant preference: 88% of consumers who use cashback extensions are more likely to shop with retailers offering deals.
- Increased conversion rates: The use of cashback extensions can significantly improve conversion rates. In fact, 93% of extension users are more likely to complete a purchase. The CJ/Namogoo report also showed that extensions boosted conversions by 25% for shoppers whose carts had no discounts, and 64% of shoppers who received a pre-checkout alert from an extension were more likely to complete their purchase.
- Higher average order values: 60% of consumers reported spending more when they knew they were getting a deal via a cashback extension. The CJ/Namogoo report showed that shopping extensions led to a 38% increase in “add-to-cart” rates and 65% more revenue per session.
The Benefits of Browser Extensions for Retailers
It’s natural for independent retailers to hesitate about offering their affiliate offers through cashback browser extensions due to concerns about pricing control or margin compression. However, cashback extensions aren’t about slashing prices or devaluing brands — they’re about creating a win-win scenario for both retailers and consumers. Here are three reasons why browser extensions can benefit retailers:
- Increased visibility: Browser extensions can introduce a brand to new customers who might have otherwise overlooked it. Some extensions even trigger notifications in Google search results, making retailers stand out with cashback offers.
- Low-risk: Unlike traditional advertising, retailers only pay when a sale happens, ensuring they get measurable results from their marketing efforts.
- Competing with larger brands: Cashback extensions help level the playing field. While big brands have bigger marketing budgets, smaller retailers can still display their offers to value-driven shoppers.
Conclusion
The ecommerce space is becoming more competitive every day, and smaller retailers need every advantage they can get. Using cashback browser extensions as part of an affiliate marketing strategy can not only help boost sales but also build long-term customer loyalty. In a world where consumers are always looking for the best deal, cashback rewards through browser extensions can be the key to gaining and retaining customers.
