How to boost your Shopify dropshipping business by using cashback
Every dropshipper is looking for new ways to improve their business. And what if you could get some of your expenses back? For sure it sounds amazing!
In this article we will tell you more about how to get extra profit and raise your dropshipping business by using cashback.
What is cashback and how does it work?
Cashback is a benefit where customers earn a percentage of the amount they spend back in cash. If you are a newbie to dropshipping, you can read this article to get an idea of what it is.
What does it mean for dropshipper? This means that you can get back some of the expenses on your dropshipping business, and thus your margin will increase.
Different cashback services have their own catalogue of advertisers from which you can get commission.
Here is an example of how it works:
- Make purchase through the cashback service, for example, in AliExpress, Alibaba, Walmart etc;
- After the products are delivered part of the cost will be returned on your cashback account;
- You can withdraw this money, which is a great extra income for the business.
You may ask, why should these cashback services pay me back a percentage?
In this chain the cashback service acts as a connecting piece between the marketplace and the dropshipper. When a dropshipper makes a purchase through a cashback service, this service receives a commission from the marketplace for the referred customer, and then sends you a commission for purchases.
How to choose cashback service?
Today you can find many services offering cashback for dropshippers. However, don’t rely on reviews alone, as all companies have good and bad reviews.
It is important to analyze the following:
- Technologies that offer these services to dropshippers
- Conditions of the offer
- Percentage of the commission
- Convenient withdrawal methods
- Variety of the suppliers you can work with etc
For example, one of the most convenient technologies for cashback services nowadays is the ability to integrate with dropshipping fulfillment services. For you, as dropshipper, this means that you can automise your routine work. In order to receive cashback, you will not need to register each purchase separately, but you can place all purchases through the fulfillment service and receive cashback for a bulk order.
Also, it is important to check whether the cashback service supports the platform on which your store is built.
How can dropshippers earn extra money from cashback websites?
We already talked about getting cashback for purchases. All a dropshipper needs to do is to register in the cashback system, connect to the desired offer, connect the fulfillment system (if cashback service has such technology), make further purchases through a special referral link, and withdraw cashback.
Thus, the dropshipper wins twice – earns on the margin from the sale of his supplier’s goods and receives a commission from the cashback service.
If you are an influencer in the dropshipping business, perhaps you have a blog or group, or even your own app for dropshipping, then you can succeed in the second method of making money through cashback services, which is referral program.
Most cashback services offer a referral program to their users. Thus, you can share useful information with your audience about the possibility of getting extra profit in dropshipping, and the cashback service will thank you with a commission for inviting new users. It can also become a great passive income.
How getting cashback will boost your dropshipping business?
Every dropshipper is looking for ways to increase profits: you are looking for ways to increase volumes, trying to find the best supplier and negotiate more favorable terms of cooperation, calculating the best pricing scheme, gaining customer loyalty and increasing your brand awareness. And now you know about another way to increase profits – cashback.
Why not use it to your business benefit? You can cover your monthly store maintenance costs with cashback. Or you can use this additional profit to promote your store. For example, you can spend the received cashback on marketing, thus even more attracting potential customers, which will help increase sales.
An important point that every dropshipper should know when using cashback
Since cashback works using the affiliate technology, it is very important to follow certain rules in order for the affiliate chain to work.
- Do not use several cashback services at the same time.
Some newbies think they can get double cashback. However, this is a delusion. Affiliate systems work in such a way that your purchase can only be credited through one affiliate link. If you use many services, it is possible that a click on the link is recognized in their systems, however, when the payout time comes, you will receive payment only in one of the services, and it is even possible that cashback will not work at all in any of them.
- Clearing cache & cookies of your browser.
To make sure your cashback will be tracked correctly, before making a purchase it is recommended to clear cache and cookies. Also, before using cashback service, it is important to make sure you have not disabled the cookie feature on your browser.
- Deactivation of all third-party extensions.
You do not need to delete extensions, just temporarily deactivate them before making a purchase in your browser settings. After making an order, you can turn them back on.
It is important to do, because some extensions block cookies, for example, such extensions as Adblock. Cookies are important for tracking, since cashback services communicate with retailers through cookies, and if a cookie is lost, cashback will not work.
Great, now you know about another way to grow your dropshipping business! In this article, we have revealed all the most important points so that you can safely start receiving cashback.
If you are already looking for a cashback service, we would like to tell you about free service Admitad cashback, where you can find top dropshipping suppliers such as AliExpress, Alibaba, Banggood, DHgate and many more. This service has integration with top dropshipping services to automise your cashback, such as Oberlo, Dsers, Dropified and others. If you do not use fulfillment services, you can still receive cashback manually.
We hope this knowledge will help you to increase your earnings and wish you to find a good cashback service which will suit your needs!