When Ebates launched in 1998, the online shopping network redefined the
affiliate marketing concept by adding a new — and desirable — spin:
rebates for buyers.
“The company’s strategy is really very simple. I pay a 10 percent
commission for the sales Ebates generates for me, and they pass that 10
percent savings on to the customer,” explained Jeffrey Reberry, affiliate
marketing manager for Greenwood, Colo.-based eBags.
eBags — which sells luggage, handbags, backpacks and related
products — has been a client of the San Francisco-based company since June
1999. “The results we have experienced with this program have been great,”
Reberry said. “This is incentive-based shopping at its best. The company has
a loyal, online customer base; the conversion rates are exceptional and it
is a cost-effective way to drive traffic to our site.”
Customers who join the online shopping community can enjoy up to 25
percent cash back on their purchases, noted Alessandro Isolani, CEO of
Ebates. “Signing up for the program is free, quick and it only requires
filling out a simple form on the site requesting minimal personal
information,” he said. “Virtually every item purchased through the site
qualifies for a rebate.
“We track the rebates customers are due and, on a quarterly basis, we
either mail them a check or credit their accounts,” he added. “We can also
donate the rebates, or a percentage of them, to customers’ favorite
charities. A record of the rebates coming to customers can be accessed by
clicking on the ‘Account Summary’ page.”
Site features additionally include a downloadable program that alerts
members when special offers come to play, a ‘My Favorites’ option that
stores up to 20 of the most frequently shopped locations, customer care live
chat, and a search function that tours the site by rebate, category or
store name.
“The service is revolutionary,” said Michael Tabasso, affiliate marketing
manager for globalsports.com.
The company, based in King of Prussia, Penn., develops and operates
e-commerce sporting goods businesses for a variety of vendors, including
Sports Authority and Fog Dog.
“Sales coming through the Ebates site have been phenomenal,” Tabasso
said. “I rate the company among the top 10 of our 70,000 affiliates. The
revenue Ebates has generated for each of our partner companies is a measure
of the excellent job it performs.”
Although the Ebates community houses retailers who sell similar products,
both Reberry and Tabasso stated that cannibalism of sales is not a concern.
“We have two or three competitors in that community, but there is no
doubt that we are doing well by participating in this network,” said
Reberry. “The conversion rates through Ebates are the highest among all of my affiliate partners.”
Although globalsports.com enlists competitive vendors as part of its
network, Tabasso states that Ebates is a cure, not a problem.
“Each retailer adds value to the shopping network,” he said. “Plus, the
customers who come through the network are very loyal. Each outlet has its
own customer base and each sale would not have occurred without the presence
of the specific retailer. When you think about it, this is the way to shop.”
