ShopBack, a service that lets you get cashback on your ecommerce purchases from over 500 merchants in Singapore, launched its iOS and Android apps yesterday. The app is now the top free app in the shopping category in the iOS App Store, and number four (as of July 5 at 9.45am SGT) in the top free apps category in Singapore.
Founded in August 2014, ShopBack has since raised $1.1 million from investors. It acts like an affiliate marketer for ecommerce sites, collecting a fee for every purchase made through ShopBack, part of which is passed to consumers. A variety of marketing methods such as influencer marketing through actor Tosh Zhang, Facebook paid marketing, email marketing to its existing user base, and YouTube videos were used to drive app downloads.
Ecommerce cashback apps are not a new concept
San Francisco company Ebates was doing it since 1998, and in 2014 it was acquired by Rakuten for $1 billion. In Indonesia, Ardent Capital funded Snapcart, offers a cashback app for offline purchases, to encourage O2O behavior. Asia has seen an ecommerce boom only in the past few years, fueled by a combination of venture capital fervor, greater internet and smartphone penetration, and rising incomes in emerging markets. The ecommerce market is nascent but fast growing.
ShopBack doesn’t appear to have generated the same amount of enthusiasm among Android users yet, as it’s nowhere near the top rankings there. For developed countries such as Singapore, the concept may be successful as the market has reached maturity but for many countries such as Indonesia and Philippines where Android users are dominant, adopting the simplest of ecommerce behavior still has a long way to go.
A version of this appeared in Tech in Asia on July 5. Read the full article here.