Dive Brief:
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A new site, Fashionism.com, rewards shoppers for paying full price. Once users' rewards reach $100, they can access their gains via PayPal.
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Fashionism earns commissions through its partnering retailers and passes some of what it reaps to its customers through average rewards of 7% of the purchase price, though they can reach as high as 20%.
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Fashionism’s 200 participating brands include Sephora, Saks Fifith Avenue, Free People, and Bloomingdales.
Dive Insight:
Cash-back rewards are becoming increasingly popular, and Fashionism is taking it to the max, offering rewards only to consumers who pay full price rather than issuing immediate discounts.
One may argue that, by accruing these awards, consumers actually are getting a discount rather than paying full price. But this approach promotes a different psychology by undermining the consumer penchant for discounts and allowing brands to maintain their retail price in reality and not just in theory.
