Cash reward programs don’t just serve frequent fliers and frugal supermarket shoppers anymore. In an effort to recognize enthusiasts on its online marketplace, eBay rolled out its eBay Bucks program on August 3, putting cash directly in buyers’ eBay accounts. Any shopper who resides in the U.S. and is a registered member of eBay.com is eligible to participate in the program.
Here’s how it works: When buyers purchase qualifying items using PayPal, they automatically earn 2 percent, which is deposited into their eBay accounts; these eBay Bucks accumulate during each calendar quarter. Upon receipt of eBay Bucks certificates, buyers have 30 days to redeem them through purchases with PayPal on eBay.com.
“With redemption rates well above industry average for comparable loyalty programs, eBay Bucks is a big hit with both buyers and sellers,” said Lorrie Norrington, President of eBay Marketplaces, in announcing the program.
Simplicity and percentage earned are key, said Marc Steffens, eBay’s Senior Manager of Loyalty Marketing, who oversees the eBay Bucks program. “The average U.S. household has 13 loyalty memberships,” he noted. “We felt we needed to go beyond the average program in terms of the benefit for the user. We also heard from many users of eBay Bucks that the program had to work in a very simple fashion.”
To that end, there are no manual redemptions or external sites involved in the eBay Bucks user experience. “We have very sophisiticated site integration,” said Steffens, “where the user sees what’s earned throughout the buying flow. The amount you’ve earned follows you as you use eBay. And one eBay Buck equals one dollar, so it is always very transparent how much you earn. When it’s time to redeem, the eBay Bucks are automatically applied.”
“eBay’s leading and vast merchandise selection offers shoppers extensive opportunities to earn and spend rewards,” said Steffens. Not incidentally, the extra incentive to buy on eBay is spurring increased sales for sellers as well, he added.
More information on the program and a video tutorial are available on eBay.com.