Cashback means “money back.” In detail, this means the amount of money that a customer gets back for a purchase or a contract. This amount of money is usually made up of the net price of the product or service purchased, and the cashback rate of the cashback site used. The easiest way to explain it is with the following example:
Julia buys a product for $119. The net amount is $100, and the cashback rate is 4%. So Julia gets $4 cashback!
As the example above already suggests, Julia does not get the $4 cashback directly from the shop she trusts, but from the cashback site she used to get to the shop. Before Julia can get her money back for her purchases, the following points must be met:
- Register and activate your account on the cashback site
- Register on the cashback page or in a cashback tool (e.g., a browser add-on)
- Find the online shop you want on the cashback page and click to open the online shop
- Open the online shop by clicking on the cashback page
- Complete the purchase directly as usual without visiting other bargain or coupon sites beforehand
Only then can the cashback page record the customer’s purchase. If Julia has surfed her favorite shop via a cashback page, she gets money back for her purchases or bookings. However, the customers do not get the money directly from the shop they bought from but from the cashback page they used. There are many cashback sites you can use in this case.
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Why Can’t You Get Cashback Directly from the Online Shop?
Online stores are interested in getting more customers and, of course selling more products. To achieve this, they often invest large sums in advertising budgets. It has been common practice for years for online shops to pay commissions for recommending their products. For example, a blog that advertises a shop’s products receives commissions for purchases made through the recommendation (recommendation marketing). You can do a free Amazon review on your blog or site and attach the link to the product to lead a user to Amazon’s website. In simple terms, you can get paid to write reviews.
As soon as a website or a blog forwards a visitor to a shop, the shop pays a (referral) commission to the referring website. In our example, this website is a cashback page. The cashback page now passes on part of this earned commission to the shop’s customer. From the customer’s perspective, this part is the cashback – the customer gets part of his expenses. In this way, a customer receives part of the advertising costs, which are reflected in one way or another in the product price, as cashback.
At Which Online Shops and Services Can I Get Cashback?
The number of shops, service providers and offers a cashback site support varies greatly. The number can be between a few 100 and several 1000 shops. In general, however, it can be said that cashback sites now have a large number of online shops and services on the Internet that generally support cashback in their range. And not only purchases in classic online shops are made more attractive by the “money-back principle.” Here are some examples where cashback can be earned:
- Internet and telephone contracts
- Provisioning and saving: building society contracts, loan agreements
- Travel and vacation: flights, hotels, buses
- Shopping: electronics, clothing, medicines, groceries, furniture, etc.
Here are some exotic examples where users got money back for their expenses:
- Trees and plants
- Lotto and tickets
- Tariff comparisons
- Online training and courses
A new customer often gets cashback simply by registering with a service provider or signing up for a newsletter. This means that customers can not only earn cashback by shopping. Registration as a new customer is often sufficient. Rebatest is the best cashback site USA where you can register, earn up to 100% cashback and save on your purchases from several online stores.
How Much Money Will I Get Back? How Much Cashback Can I Earn?
To record a purchase on the Internet, the customer must first be logged into the cashback page. Only then can the click or the recommendation and forwarding to the desired shop be correctly recorded. This is usually done with so-called tracking or affiliate links made available by affiliate networks.
These links contain information that tells the cashback site, the affiliate network, and the shop which user of the cashback page is currently visiting a shop and how much money has been spent. This information is forwarded from the cashback site to the networks and then to the shops with the tracking link’s help.
This forwarding can sometimes cause disruptions. In this case, it can happen that a purchase is not recorded, and therefore no cashback can be paid. However, some cashback sites offer the opportunity to get to the bottom of these errors. To do this, the customer must then provide all the necessary information about the purchase and the procedure via an inquiry form.
Why Are Cashback Portals With Cash Withdrawals Better Than Collecting Points?
In contrast to point-based bonus programs, the user receives the money directly, for example, to his bank or PayPal account. This makes it easier for the user to see what percentage of the amount spent has been saved or earned. A complicated conversion of points into material values or payment amounts is not necessary. In addition, the cashback rate on cashback point portals is often relatively low, even if a large number of points makes it seem different.
Especially providers of point cards, which have to be scanned when purchasing, often use them to collect user-specific data and purchasing behavior. This data is used to create exact (purchase) profiles of the customers. This turns the customer into a transparent customer.
Cashback portals, which only record a user’s purchase via link tracking, can only determine where, i.e., in which shop or on which website, purchases were made, but not what exactly was purchased. This allows users to shop more anonymously and better protect their data.
Cashback in the Offline World
Offline shops offer cashback campaigns. For example, when you return a used device and buy a new one (the best known is probably the razor cashback campaigns from a well-known manufacturer). However, this is rarely the case. On the other hand, cashback in online trading plays a much more significant and increasingly important role.
Nowadays, most online stores generate a significant proportion of their sales through referrals from third parties. Cashback is another way to differentiate yourself from the competition. So many online shops also offer cashback through various programs and cashback sites.