Saving money while shopping? That sounds too good to be true. But there is a way to get money back on your purchases: Cashback.
Cashbacks are a marketing tool that is becoming increasingly popular and offers benefits for both consumers and retailers. But how does cashback actually work and is it really worth it?
In this article, we’ll explain everything you need to know about cashbacks and highlight the pros and cons for consumers. Read on to find out how you can save on your purchases!
What Is Cashback?
Cashbacks are a marketing tool in which you receive a portion of the purchase price back after making a purchase. The retailer or the cashback platform grants this partial amount as a discount that can either be transferred directly to your bank account or collected as credit on the cashback platform and paid out later. Various platforms offer cashbacks and they can apply to both online and offline purchases.
Why Cashbacks Are Attractive to Consumers
Cashbacks are an attractive offer for those of you who like to save money and have the opportunity to shop at different retailers. They are attractive for several reasons:
You get a portion of the purchase price back, which means you can save money. This is especially attractive to people who like to save money or are tight on cash.
Cashback platforms offer cashbacks for a variety of retailers, including popular brands and stores. This allows you to receive cashbacks on a variety of stores and products.
Some cashback platforms offer additional discounts or coupons on certain products or services, which can increase the overall discount for you.
There is no cost or obligation for you to receive cashbacks. This means you can sign up and use for free without having to make a commitment.
How Does Cashback Work?
Here’s how cashback typically works:
1. You make a purchase at a participating retailer, either online or in-store.
2. The cashback platform tracks the purchase and calculates the cashback amount, which is usually a percentage of the total purchase price.
3. The cashback amount is credited to your account on the cashback platform.
4. You can then withdraw the cashback amount to your bank account or use it as credit towards future purchases.
For example, if you buy a pair of shoes for $100 and the cashback rate is 10%, you would receive $10 back as a discount. This discount can then be credited to your cashback account, and you can use it for future purchases or withdraw it to your bank account.
Cashback platforms make money by charging retailers a commission for referring customers to their store. The commission is usually a percentage of the purchase price, which is then shared with you, the customer, as cashback. This benefits both the retailer and you, as the retailer gains more customers and you receive a discount on their purchase.
One example of a cashback platform is Woolsocks. The app offers rewards that automatically give you cashback by detecting all eligible purchases you make.
The platform offers over 35,000 cashback offers that can get you back up to 50% of the money you spend – immediately without having to wait for confirmation from the shop. The app also presents special deals to you, on a daily basis, such as discounts and free products. BudgetBakers as an official partner has been working with Woolsocks for a long time, allowing you to connect all your accounts to the app and manage your cashbacks.
Advantages of Cashbacks for Consumers
Cashback programs can provide you with a range of benefits, from saving money and increasing purchasing power to offering greater flexibility and value for your money.
The most obvious benefit of cashback programs is that they help you save money. By earning a percentage of your purchases back in cash, you can effectively reduce the cost of your purchases.
Increase Your Purchasing Power
Cashback programs give you increased purchasing power, as you can use the cash you earn to make additional purchases or pay off bills.
Benefit from Ease of Use
Cashback programs such as Woolsockis are typically easy to use, offering automatic cashback for purchases made through participating retailers or using a particular credit card.
Cashback rewards are typically quite flexible, allowing you to use them as you see fit, rather than being limited to specific products or services.
Get More Value for Your Money
With cashback programs, you get more value for your money, as you earn cashback on top of any other discounts, coupons, or promotions you may be using.