The British-based online marketplace OnBuy is set to launch an upcoming customer loyalty rewards program, as reported by Retail Week and confirmed by OnBuy’s founder and CEO, Cas Paton, on his LinkedIn page.
The objective is to introduce a loyalty program exclusively for current customers, with the aim of encouraging their return to the marketplace while also facilitating business expansion. This program would make OnBuy the first online marketplace to offer such a comprehensive rewards scheme.
Paton acknowledged the growing interest in rewards among shoppers and emphasized OnBuy’s commitment to fulfilling this desire by pioneering customer rewards in the online marketplace industry.
By introducing this loyalty program, Paton aims to distinguish OnBuy from larger competitors like Amazon, Walmart, and even eBay, which currently offer subscription programs such as Amazon Prime, Walmart+, or eBay Plus (not available in the U.S.).
These programs typically provide benefits like free or discounted shipping or other non-ecommerce perks in exchange for the annual or monthly fee.
While such programs effectively retain customers and generate revenue for marketplaces, regardless of active usage, they can also create a sense of dependence with buyers. Customers may feel compelled to continue using the platform simply because they already pay a fee.
OnBuy’s rewards program aims to enhance the overall customer experience by offering exclusive benefits to loyal customers.
Paton explained that the loyalty program will provide increasingly valuable rewards to customers who make repeat purchases on OnBuy, thus incentivizing continued engagement with the platform.
“The more loyal you are with OnBuy, the more rewards and the greater the rewards become. That’s the principal rule,” he said to Retail Week.
Paton highlighted that the rewards program will not extend to new customers. Instead, it will be earned by demonstrating loyalty to the marketplace.
OnBuy aims to be an honest and fair marketplace that values and rewards customer loyalty. It aspires to provide customers with a comprehensive shopping experience, encompassing a vast product selection, diverse choices, a unified app and website, all accompanied by an integrated rewards program.
While not mentioned in the article, implementing a rewards program can also facilitate OnBuy’s international business expansion without the necessity of investing in infrastructure or forming partnerships to incorporate value into a subscription service.
Paton did not disclose an official launch date for the new rewards program, but its introduction is expected soon. He said on LinkedIn that rewards are coming soon and to “Watch this space!”
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