Cashback Websites

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Cashback websites are a type of Reward website that pays its members a percentage of money earned when they purchase goods and services via their affiliate links. The cashback website will receive a commission payment from the retailer and once the purchase is confirmed will then share this payment with the customer who made the purchase. This means that the cashback site makes a profit on the sale and the consumer gets to recoup some of the initial outlay back.

Members can earn money on many types of online purchase. These can range from consumer electronics to finance products and furniture. The most profitable cashback deals often involve finance related goods such as insurance products, loans & mortgages where significant amounts of cashback can be generated from a single purchase. Other retailers such as expensive fashion retailers often tend to carry high percentage cashback rebates due to their profit margins.

Cashback websites often place a threshold on when a customer can withdraw their earnings, thus making it necessary for a customer to return to the cashback site to add to their cashback earnings in order to reach the threshold target.

Many cashback sites incentivise their customers further by offering them benefits or cash to refer others to the site. This provides the benefit both to the cashback website and the customer as it helps the customer to build up their cashback and helps the cashback website to grow by signing up new members.

The number of Cashback Websites has increased due to the presence of companies like Tradedoubler which make it relatively easy to create this kind of website [1] . Other low barriers to entry mean there are many new companies still entering the market.

Some of the more popular UK cashback websites are Quidco, Rpoints, Greasypalm, Mutualpoints and eDealsUK.[2]

Some US cashback websites include BigCrumbs Ebates and FatWallet

  1. ^ Lewis, Martin, Online Shopping: Use shopbots to compare prices & then get extra cashack [link accessed 2006-02-12]
  2. ^ Cashback Site Chart - 31st Jan 2007 [link accessed 2006-02-12]

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