Prepaid Offers on Checkout

Table of Contents

• How to Create a Prepaid Offer

• Frequently Asked Questions

SmartBiz allows brands to create offers designed to encourage customers to choose prepaid payments over Cash on Delivery (COD). Since COD orders often result in higher Return to Origin (RTO) rates, these offers help brands reduce RTO while driving more prepaid transactions.

Before prepaid offers can be applied at checkout, ensure that:

• Prepaid payment methods are enabled on your SmartBiz store

• Your payment partner setup is complete

Brands can set up prepaid-specific offers in two ways:

• Percentage Discount: For example, offer a 5% discount on the total order value for prepaid orders.
• Flat Discount: For example, offer a flat INR 50 off on all prepaid orders.

These flexible options help brands effectively incentivize prepaid payments, enhancing both customer experience and operational efficiency.

Creating Prepaid Offers on the SmartBiz Desktop App

To set up prepaid offers, follow these steps on the SmartBiz desktop app.

Please note: This feature is currently available only on the desktop version and not on the mobile app.

How to Create a Prepaid Offer on the SmartBiz Desktop App

1. Navigate to the Payments Tab
On the left-hand side of the SmartBiz desktop app, click on the ‘Payments’ tab.

2. Access the Prepaid Offer Section
Under the Payments section, you’ll find ‘Discount on Prepaid Offer’. Click on ‘Create Offer’ to set up your prepaid offer on your storefront.

3. Choose Your Offer Type
You will now see two options:

1.  
   • Percentage Discount
   • Flat Amount Discount

4. Set Up a Percentage Discount

1.  
   • Choose Percentage Discount and enter the percentage value (e.g., 5%) you wish to offer on prepaid orders.
   • You can also set a minimum cart value (e.g., INR 1000) and a maximum discount cap (e.g., INR 100).
   • Example: "5% off up to INR 100 on orders above INR 1000".
     Note: Both the minimum cart value and the maximum discount are optional fields.

5. Set Up a Flat Amount Discount

1.  
   • Choose Flat Amount Discount and specify the flat discount (e.g., INR 50).
   • You can also set a minimum cart value (e.g., INR 500).
   • Example: "INR 50 off when cart value is over INR 500".

6. Manage Offers: Create, Edit, or Delete

•  
  • Please note that only one offer can be active on your store at any time.
  • If you wish to edit an active offer, you’ll first need to delete it and then create a new one.

FAQs

1. Why is my prepaid offer not showing on checkout?
A prepaid offer will not appear if:

• The offer is inactive or expired

• The order value does not meet the minimum or maximum conditions

• The selected payment method is not eligible for the offer

2. Will prepaid offers be visible on the product page or cart?
No. Prepaid offers are shown only on the checkout page after the customer selects a prepaid payment option.

3. Can prepaid offers be applied to Cash on Delivery orders?
No. Prepaid offers apply only when the customer selects a prepaid payment method. They are not applicable to COD orders.

4. What happens if multiple prepaid offers are created?
If multiple prepaid offers are active, only the most relevant eligible offer is applied at checkout based on the configured conditions.

5. Why does the offer disappear when the customer changes the payment method?
Prepaid offers are payment-method specific. If the customer switches to a non-eligible payment method, the offer is removed automatically.

6. Does the prepaid offer affect my order payout?
Yes. Since prepaid offers are seller-funded, the discount amount is deducted from the order value, and your payout is calculated on the final discounted amount.

7. Can I edit a prepaid offer after it is created?
Changes to an offer will apply only to new orders. Orders already placed will not be affected.

8. Why is the offer not applied even though the customer selected prepaid?
This can happen if:

• The order value does not meet the offer conditions

• The offer usage limit has been reached

• The offer is restricted to specific payment modes

9. Will customers see the offer applied before payment confirmation?
Yes. The discounted amount is shown clearly on checkout before the customer completes the payment.

10. How do Prepaid Incentives help reduce returns (RTO)? 
Prepaid Incentives are the most effective lever for reducing returns because they move orders away from Cash on Delivery (COD). SmartBiz data shows that prepaid orders have a return rate of only ~2.9%, compared to 10-21% for COD offer types.

11. What is the best offer combination to minimize returns? 
For the lowest return rates, we recommend pairing a Cart Discount with a Prepaid Incentive. This combination has shown return rates as low as 1.6% with effectively zero COD risk.

12. Should I always keep Prepaid Incentives active?
Yes. It is recommended to keep a Prepaid Incentive enabled almost always as a companion to any other offer. It ensures that while your Cart or Product discounts drive volume, your return risk remains managed.

13. When should I offer a prepaid incentive?
Enable a Prepaid Incentive whenever possible. It encourages customers to pay online, reducing Cash on Delivery (COD) orders, return-to-origin (RTO), and return rates.

14. How do I choose the right offer for my business goal?

15. Which offer helps reduce returns?
Prepaid Incentives are the most effective at reducing returns because they encourage prepaid orders instead of Cash on Delivery (COD). Stores using prepaid incentives generally experience lower RTO and return rates.

16. What is the best offer combination for my store?

For most stores, the recommended setup is:

Cart Discount + Prepaid Incentive to improve conversions while reducing COD orders, RTO, and returns.
Add a Product Discount if your goal is to increase basket size and your margins support it.