Cashback websites have become increasingly popular as a way for savvy shoppers to earn money back on their online purchases. If you’ve ever wondered how these sites work and whether they’re too good to be true, this blog post is for you! Let’s break down the process and explore how cashback websites help both shoppers and companies.
What Are Cashback Websites?
Cashback websites are platforms that allow users to earn back a percentage of the money they spend while shopping online. The process is straightforward: you sign up for a cashback website, click on a retailer’s link through the cashback platform, make a purchase, and then receive a portion of the purchase price back as cash.
How Do Cashback Websites Make Money?
While it may seem like cashback websites are giving away free money, they actually operate on a commission-based model. Here’s how it works:
- Affiliate Partnerships: Cashback websites have affiliate partnerships with various retailers. When you make a purchase through a cashback website’s affiliate link, the retailer pays the cashback site a commission for referring you as a customer. This commission is typically a percentage of the total purchase amount.
- Sharing the Commission: Instead of keeping the entire commission, cashback websites share a portion of it with you, the customer. This is how you get a “cashback” on your purchase. For example, if a retailer offers a 10% commission, the cashback site might give you 5% back while keeping the other 5% as profit.
- Advertisers Win: Retailers are willing to pay these commissions because cashback websites drive traffic to their online stores. It’s essentially a form of paid marketing for the retailer, where they only pay when a sale is made.
How Do You Use Cashback Websites?
Using a cashback website is fairly easy and follows these basic steps:
- Sign Up: First, you need to sign up for a cashback website. Popular ones include TopCashback, Rakuten (formerly Ebates), and Quidco in the UK.
- Browse Retailers: After signing up, browse through the list of participating retailers on the cashback website. These range from fashion to electronics to travel.
- Click Through: To make sure your purchase tracks and earns cashback, click the retailer’s link on the cashback website before making your purchase. This ensures that the sale is attributed to the cashback site.
- Make a Purchase: Complete your purchase as usual on the retailer’s website.
- Receive Cashback: After the retailer confirms your purchase, the cashback website will credit your account with a percentage of your spending. This process can take anywhere from a few days to a few weeks, depending on the retailer’s policies.
- Withdraw Your Cashback: Once your cashback is confirmed and available in your account, you can withdraw it via PayPal, bank transfer, or gift cards, depending on the site.
Benefits of Using Cashback Websites
- Savings: You’re essentially being rewarded for making purchases you would’ve made anyway. It’s a great way to save money on everyday shopping.
- Multiple Earnings: Some cashback sites offer bonus rewards, like special cashback rates during holidays or extra cash for signing up or referring friends.
- Stacking Discounts: Cashback offers can usually be combined with other discounts, coupons, or promotional codes, allowing you to maximize your savings.
What to Watch Out For
- Cookies: Cashback tracking relies on cookies, so you’ll need to enable them in your browser for the cashback to register properly. Make sure you don’t visit other sites or use ad-blockers between clicking on the cashback site and completing your purchase.
- Not All Purchases Qualify: Some retailers or items may be excluded from cashback offers, so always read the terms and conditions.
- Time to Receive Cashback: It’s important to note that cashback isn’t instant. Retailers usually confirm the purchase only after the return window has closed, which could take several weeks.
- Minimum Withdrawal Thresholds: Some sites have a minimum amount of cashback that you must accumulate before you can withdraw your earnings, so patience is required.
final thoughts…
Cashback websites offer a win-win scenario for both shoppers and retailers. Shoppers get a percentage of their money back, while retailers benefit from increased traffic and sales. While it might take a little extra time to click through a cashback site before making a purchase, the savings can add up significantly over time. So next time you’re shopping online, why not earn a little money back on your spending?
Have you used a cashback website before? How was your experience? Let us know in the comments!