Online Marketplace Fashionism’s Rewards Innovation? Cash Rewards

Fashionism.com’s new way to keep customers loyal is as old school as it gets–giving customers cash back to keep them coming back. Via a percentage of the purchase, Fashonism rewards customers by returning a percentage of the purchase. According to founder and former Ralph Lauren marketing executive Anthony Khera, the site negotiates a commission rate with the brands it works with, and then passes a percentage of that mark-down back to its customers.  Generally that discount is below 10 percent but can stretch to as much as 20 percent. Women’s Wear Daily reports that the average is about 7 percent.

There are about 200 participating brands and Khera notes that  75 percent of first-time buyers on the site come back to make another purchase within a month.  Savings are are banked in user Fashionism accounts and when the balance reaches $100, the amount is refunded to a user’s linked PayPal account. The funds are reversed when merchandise is returned. Fashionism also helps shopper feel good about their expenditures, by making a contribution to Feeding America for every transaction booked on its site. “Through our research of the affluent buyer, good value for the money is more important than the price. They’re going to buy anyway, and they like to be rewarded for what they spend,” Khera said.

Current cash-back offers include: Burberry, 6 percent; Moda Operandi, 5 percent. Saks Fifth Avenue, 5 percent; Sephora, 5 percent;Bloomingdales, 6 percent;  and Helmut Lang, 12 percent;