Cashback allows merchants to reward customers with a certain percentage of their purchase amount after they complete an order.
The cashback earned can be used by customers for their next purchase. This helps encourage customers to return to the store instead of purchasing one time only.
For example, if you set 5% cashback, and the customer places an order of RM100, the customer will receive RM5 cashback after the order is completed and paid.
This cashback can then be used for their next order, depending on the cashback settings.
Cashback is suitable for merchants who want to encourage repeat purchases, increase customer retention, and give customers an extra reason to come back.
How Cashback Helps Your Business #
Cashback can help create a repeat purchase cycle.
Customer places an order → Customer receives cashback → Customer returns to use cashback → Customer places another order
This is useful because customers may feel that they are getting extra value from every purchase.
Cashback is also easier for customers to understand compared to complicated reward systems. A simple cashback reward makes the benefit clear because customers can immediately see how much value they are getting back.
In retail, cashback programs usually work by giving customers a percentage of their purchase back as store credit or redeemable balance, which encourages them to return for future purchases.
Example Scenario #
You want to encourage customers to buy again after their first order.
You set:
Cashback Percentage: 5%
Day(s) before expiring: 30 days
Customer order:
Order amount: RM100
Cashback earned: RM5
Cashback expiry: 30 days
This means the customer will receive RM5 cashback after the order is marked as Completed and Paid.
The customer can use the cashback for their next order before it expires.
📝Note: Cashback rewards will only be given after the order status becomes Completed and Paid
How to Setup Cashback #
Step 1: Go to Customers #
From your admin dashboard, go to Loyalty Program
Look for the Cashback section.
Step 2: Enable Cashback #
Turn on the toggle button for Cashback.
Once enabled, you can start configuring the cashback settings.
Step 3: Enter the Cashback Percentage #
In the Cashback Percentage field, enter the cashback percentage you want to give to customers.
Example:
5 = Customer receives 5% cashback from their purchase amount.
If the customer spends RM100, they will receive RM5 cashback.
Recommended Cashback Percentage #
As a safe starting point, merchants can start with 1% to 5% cashback.
A common reward rate for eCommerce stores is usually around 1% to 5% of customer spending, depending on the product margin. For lower-margin products, it is safer to stay around 1% to 2%. For higher-margin products, merchants may consider 3% to 5%.
Here is a simple guide:
| Product Margin | Suggested Cashback |
| Low margin products | 1%-2% |
| Medium margin products | 3% |
| High margin products | 4%-5% |
| Campaign / short-term promotion | 5% – 10%, only if margin allows |
For most merchants, we suggest starting with 3% cashback first.
It is attractive enough for customers, but usually safer compared to giving too high cashback from the beginning.
Step 4: Set the Cashback Expiry Period #
In the Day(s) before the expiring field, enter how many days the cashback will remain valid.
Example:
30 = Cashback will expire after 30 days.
This means customers need to use their cashback within 30 days before it expires.
Why Cashback Expiry Is Important #
- The expiry period helps encourage customers to come back sooner.
- If cashback has no expiry or the expiry period is too long, customers may delay their next purchase.
- By setting an expiry period, merchants can create urgency and encourage customers to place another order within a certain time.
Example:
- Customer receives RM5 cashback with 30 days expiry. This may encourage the customer to return and buy again before the cashback expires.