I see everyone using Cashback for most purchase, but I don't really understand how or why it is an option.
Obviously Cashrewards/shopback/cashback/etc are all different…do you Frugal-ers out there register for all of them?
thanks!
-noob
Dumb Question: Can Someone Quickly Explain How Cashback Works?
L[Deactivated] on 22/04/2020 - 08:38
Last edited 04/05/2020 - 16:22 by 1 other user
Last edited 04/05/2020 - 16:22 by 1 other user
Comments
Yeah it's a bit difficult to understand but hopefully the below explains it.
- Buy an item
- Get cash back
ELI5?
instruction unclear.
laptop stuck in dishwashing.
Shopback and Cash Rewards are the main two you'll see on here. You just use whichever has a better offer or you find tracks better etc.
log into one of the cashback sites
click into the place you want to shop
don't click anywhere else
buy something (100 bucks say)
if there is 5% cashback u will get 5 bucks
but first the company needs to verify the transactions (usually 3 months, make sure u get the item and don't return)
once its confirmed you get 5 bucks to spend
It's basically a referral system. The cash backs sites are claiming that they have driven the traffic to their site and so they get a commission on the sale.
are claiming
And you don't believe the claim?
The claim is generally a lie. You almost always knew exactly what you wanted and only went through the cashback site once you confirmed they supported the store you bought from.
Thanks everyone. Yes, I understood how simple the process is, but didn't understand the incentive from their perspective. I should have been more clear that I was interested in what they were getting from me (data, subscription, etc, etc.)
The stores pay a commission rate to the cashback sites for referring traffic that make a purchase. You get some of that percentage back as cashback and the cashback sites keep the rest so it's a win win for both. Often they'll do massive increases at a loss to attract traffic.
what they were getting from me (data, subscription, etc, etc.)
Yes, data. Just like Woolies rewards/Flybuys. You may also buy when you normally wouldn't or more than you usually would.
Yes, data
I don't think they collect much data at all. Typically the affiliate paying the commission does not give data to affiliates recieving the commission.
I meant Cashrewards and ShopBack have your data.
@John Kimble: And Diji1 is saying that's not correct. Affiliate Programs (Amazon, Ebay, Commission Junction, etc) do not tell the affiliate (Cashrewards, Shopback) anything other than a referral ID, a purchase amount, and a commission amount. They don't get any meaningful data they could make much commercial use of.
@[Deactivated]: Oh I see.
Well I see all my click history and cash back history when I login, they would have that data for all users, you may not think it's meaningful, but I can see how that could be used for certain things if analysed correctly.
@Richfield: Indeed. They know slightly more about you because you signed up with them, so they can say "x customers shop at y places". This is something, but not near as much as, say, Google knows. CR doesn't know what you bought, just where
@[Deactivated]: That's not entirely true. Some of the affiliate networks out there (particularly inhouse) will report what you purchased.
@Clear: Inhouse as in run by the vendor, not as in the name of the network? If so, I'd like to know what ones so I never ever purchase from them. It's a serious breach of privacy to tell someone else what I purchased, and it's absolutely not acceptable. To clarify my original point, no legitimate affiliate network tells the affiliate what you bought.
@[Deactivated]: As what Clear has said, it's incorrect — not just for inhouse affiliate program but also some affiliate networks. In some sense I'll say the cashback program knows even more than Google. They know where you spent, how much you spent, (in some cases) exactly what you bought, and where else have you spent. For example it might be useful to know who have spent more than $1000 from either Dell and Lenovo in the last 6 weeks…
And I just did a quick scan of some aff networks. Many would give you the order number for referencing. Some would even give you the SKU and name of the product.
Inhouse as in run by the vendor, not as in the name of the network? If so, I'd like to know what ones so I never ever purchase from them.
Amazon and eBay? I won't say the affiliate networks but some are covering hundreds of merchants.
you sign up
you buy something for $100, get 5% or $5 cash back into your cashback account.
can use your cashback $ to buy more stuff or pull back to your bank account.
here is an example of the opposite of cashback
i give my wife $100 for hair cut, it costs $69. I ask for some cash back to go to the pub for couple of quick beers. She says **** off, use your own money.