“Never spend your money before you have earned it “-Thomas Jefferson
The whole concept of cash back relies on the fact that its all about making money while you are shopping. In simple terms, it refers to two types of financial transactions. First, it’s a credit card benefit that a customer gets in terms of cash reward on a purchase of certain pound threshold and second, its in a debit card transaction where a buyer receives a cash reward at the time of purchase.
Well the cash back phenomena are quite normal for the online shoppers, it’s also quite a rage in retail shopping experiences. UK based cash back site Quidco estimated in their research that the average person can claim £280[i] of cashback each year!
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Now the next question which arise is on what all things can we earn cashback. Well, pretty much on everything be it clothes, books, food shops, coffee in a café, on bread, milk, vegetables and mobile phones. Its like you can save money on every purchase you make!
So How Popular Are Cashbacks?
According to a survey conducted by The statistics portal in 2014[ii], 63 % of people in UK with an annual income level below 50,000 British Pound annually, were willing to purchase a product with a high – value cashback rebate. Similarly for those in the 50,000 to 99,999 income bracket were keen on these rewards. Approximately 41% of the people also participated in social media contests to earn cashback. The research also shows that 40-50% of the people have opted in for the marketing messages related to future cashback offers.
Top Players in Cashback
The whole research shows how positively inclined people are towards cashback. For some portion of population, it’s also an inducing factor to make a purchase. This type of customer behavior has led to growth of many Cashback sites. Some of them are: –
They have 4500 plus retailers on their site, which gives customer a variety of shopping choices.
Customers can claim the money on their bank account, PayPal or also opt for Amazon gift card.
Another cashback site with 4650 retailers registered on them.
Money can be claimed through M&S e-gift card, BACS, Amazon UK Gift Certificate,PayPal, Love2shop card, or several store gift cards.
There are many cashback mobile applications also available. These apps will either offer customer a percentage, a set price back, or even 100% cashback, it all depends on how well and wisely do you use the apps. Some of the best apps to use are: –
- Checkout Smart
- Green Jinn
Benefits of Cashback
From a customer point of view, it’s a win situation, but when we look from the business point of view its equally attractive and profitable. The business model of cashback sites is that they will earn a commission when you buy via them. So, on execution of a purchase, a cashback is initiated by the retailer to the website which gets divided with the customer as well.
Well after a positive outlook at cashbacks, it wouldn’t be wrong to say that these are one of the most popular ways to make money! The procedure to signup with all these sites is also very easy and free of cost, in fact the cash reward which a customer earns is also tax free.