Web giant considers rewards scheme
Internet auction site eBay is thought to be considering a loyalty scheme for people using its PayPal internet payment method.??
The website is currently surveying users about a PayPal Loyalty Programme that offers special benefits to the most loyal and active buyers on eBay.
The company is currently placing a strong emphasis on customer retention and added the Net Promoter retention programme to the eBay Incentive Plan (eIP) in the second half of 2008 – eBay executives may lose up to 20% of their bonuses if they fail to meet customer retention targets.
Ebay previously ran the Anything Ponts loyalty programme that was discontinued in 2005, and tested an eBay Bucks shopper rewards programme in 2008. The website currently rewards customers with coupons giving money off purchases when they return to the site. AuctionBytes.com reports that one of its readers who participated in an eBay survey about a PayPal Loyalty Programme found that participants of such a programme might be able to get certain benefits when their total PayPal purchases reach US$3,000 in a year, and even more if they spend US$5,000 through PayPal.
Examples of benefits include Refund Protection, Enhanced Buyer Protection, Discount Coupons / Cash-Back, Donation Matching, Enhanced Customer Support, “No/Reduced Fees” Days (could be no fees or free shipping), Debit Card Cashback and Exclusive Members-Only Website and Online Community. According to AuctionBytes.com the PayPal Loyalty Programme being considered would go beyond eBay to all PayPal purchases.
PayPal has 70 million active accounts worldwide and is by far the largest internet payment system for shoppers on eBay, and increasingly on other e-commerce sites. eBay predicts PayPal revenue will total up to US$5bn in 2011, up from US$2.4bn in 2008, with online commerce set to almost double its current 3.4% share of US retail sales in the next five years.
News of the eBay loyalty initiative comes as Google cut back on activity with its Checkout online payment service. It has just raised fees for Checkout and stopped a promotion linked to merchants’ use of AdWords. Amazon is continuing to push its Checkout by Amazon payment service to both merchants and third-party developers.