In today's digital-first retail environment, smaller brands often face an uphill battle when competing with industry giants massive marketing budgets. Advertising costs on most platforms continue to escalate, making it difficult for smaller e-commerce business owners to drive sales and scale cost-effectively.

An effective and cost-effective strategy that empowers new brands to drive sales without the huge upfront costs associated with traditional advertising is affiliate marketing. In this model, online retailers partner with website publishers that display content and have an audience that is also relevant to the online retailer. The retailer pays the publisher only when a sale is actually completed, usually as a commission represented as a percentage of that sale, making affiliate marketing a low-risk, high-reward marketing strategy.

Cashback Rewards Programs such as Rakuten, PayPal Honey and Capital One Shopping, which operate as publishers in the affiliate marketing model, incentivize customers by offering a small percentage of their earned commissions as cash back on consumer purchases. These programs, and others like them, are used by millions of online shoppers. By working with cashback browser add-on publishers through an affiliate program, smaller retailers can tap into the potential of this performance-based marketing channel and reach value-conscious consumers without blowing their budget.

But smaller online retailers may have concerns about browser extensions and their impact on a brand. They may have concerns about margins or losing control of the prices and discounts they offer or whether their customers will value their products less because they are receiving cashback. But if a brand offers an affiliate program, they are already paying commission fees on sales, which should be reflected in their margin calculations. Cashback rewards are paid to the customer from the commissions publishers earn on sales. And retailers worried that customers will value their brand less for offering cashback rewards through a browser extension can take heart knowing that even some luxury brands are starting to offer cashback rewards.

The truth is that cashback browser extensions have become a powerful marketing tool that benefits both consumers and merchants. They can drive sales, increase average order values, and help independently owned e-commerce businesses reach new customers.

Related: How brands can turn short-term rewards into long-term loyalty

Why consumers love browser extensions

Consumer appetite for savings is greater than ever. In a consumer survey commissioned by Wildfire and conducted by research firm Big Village in May 2024, we examined consumer attitudes toward various savings tools, including cash back and coupons browser add-onsthat online shoppers are using. In one finding, 77% of consumers said they are more interested than ever in earning cash back rewards for shopping, and 72% said they are more interested in using online coupons and discounts to shop.

These tactics were second only to shopping during sales and promotional events. In fact, these tactics ranked higher than shopping at discount retailers or buying generic products.

Wildfire's report also shows that nearly one in three consumers (27%) use browser extensions to earn cashback more this year than last, and that 70% of consumers who have ever installed a browser extension use it frequently for cashback rewards.

These findings highlight that savings-focused shopping tools are becoming integral to the online shopping experience. However, browser extensions aren't just about discounts – they increase consumer confidence. Wildfire survey respondents benefit greatly from cashback browser extensions, including:

• 86% think the offers in their reach are valid
• 84% trust the offers they receive through their extension
• 83% report saving time by getting coupons on their extension

For small and medium-sized retailers, offering offers through add-ons can help consumers feel like they're making the right choice in their purchases, which can translate into higher conversion rates.

Related: 11 Effective Marketing Strategies to Help Improve Your Startup

Understanding the impact of browser extensions on marketers

One of the most common concerns among the youngest, niche brands is that offering deals through cashback browser extensions will reduce the perceived value of their products. However, the data tells a different story. Cashback browser extensions don't just provide discounts to consumers – they help merchants expand their reach and increase sales in several important ways. Wildfire 2024 survey, as well as a benchmark 2023 study performed by CJ and Namogoo on 67 million shopping trips, focused on the business value of browser extensions, illustrating some of the impacts on traders.

1. Improved dealer preference: Use of cashback browser extensions influences online shoppers' choice of retailer: 88% of Wildfire survey respondents who use a cashback browser extension choose to buy from merchants that offer deals.
2. Increase conversion rates: Conversion rates are critical to any e-commerce business. Wildfire's survey showed that the use of cashback browser extensions can positively affect the merchant conversion rates. In fact, 93% of respondents who use add-ons are more likely to complete their purchase. The CJ/Namogoo report illustrated that extensions increased conversions by 25% even for shoppers whose carts did not contain discounted items; and further, that shoppers who received a pre-purchase alert from their cashback browser extension were 64% more likely to complete a purchase compared to extension users who did not see an alert.
3. Highest average order values: Perhaps one of the most significant benefits of cashback browser extensions for merchants is the increase in average order value (AOV). A total of 60% of consumers in Wildfire's survey reported spending more when they knew they were getting a deal through their extension because they believed they were maximizing value through cashback or coupon offers. Further, the CJ/Namogoo report showed that shopping browser extensions resulted in a 38% increase in shopper “add to cart” rates and 65% more revenue per shopping session when an alert from the extension was displayed.

Advantage to understand browser add-ons

It's understandable that independent sellers can be cautious when it comes to allowing their affiliate offers to appear in browser add-ons. Concerns about price control and margin compression arise often. However, cashback browser extensions aren't about lowering prices or devaluing your brand – they're about creating a win-win situation for both brands and the consumer.

Three main reasons why browser extensions make sense are:

• Increased visibility: Being featured in a cashback add-on can introduce a brand to new customers who might otherwise have shopped elsewhere. Many extensions can trigger notifications on a Google search results page, helping retailers stand out in the results with a cashback offer alert.
• Low risk: Unlike traditional advertising, retailers only pay when a sale is made, ensuring they get tangible results from your marketing efforts.
• The ability to compete with the biggest brands: Cashback browser extensions help level the playing field. Bigger brands often have more resources for extensive marketing campaigns, but smaller retailers can use extensions to showcase their cashback offers as well. This can help smaller vendors get into the spotlight value minded buyer.

CONCLUSION

The e-commerce landscape is becoming increasingly competitive, and retailers that don't have the global customer reach of Walmart, Target, Amazon or Temu need every advantage they can get. Embracing cashback browser extensions as part of an affiliate marketing strategy can be a smart move that not only increases bottom line, but also builds long-term customer loyalty. In a world where shoppers are constantly looking for the best price and value, your brand can be the one they turn to when their browser add-on alerts them to your next great deal.