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What is cashback and how does it work?

Cashback

The cashback is an affiliation solution from the United States. The principle is simple: an Internet user who makes an online purchase obtains a after placing your order.

In France, this business lever has been gaining in popularity over the years. Indeed, the studies on the subject have shown that cashback has been evolving rapidly in recent years. The volume of sales generated by e-tailers thanks to this process has increased by 176% in 3 years, while the sales figures of the major cashback players (Poulpeo, Igraal, Ebuyclub…) have also risen by 147% in 3 years.

Among consumers, 75% believe that cashback is a guarantee of confidence when shopping online.

So it’s clear that, for e-tailers, cashback is an essential sales booster as much as a loyalty tool.

We tell you everything.

Cashback: definition

Cashback is a way for Internet users to get money back after a purchase. In this respect, it can easily be confused with the discount voucher. However, the difference is significant: unlike coupon codes, which must be used prior to purchase, cashback takes place after the order has been placed.

So, while a coupon has a direct impact on the price of the offer or an ancillary service (free delivery, for example), cashback offers Internet users a refund corresponding to a percentage of the payment, which is paid back in the form of commission to a dedicated kitty. reimbursement corresponding to a percentage of the payment, which will be transferred in the form of commission to a dedicated kitty.

As such, cashback can be literally translated as “money back”.

Cashback and how it works: everything you need to know about this solution

Now that you know more about cashback and how it works in theory, let’s move on to practice.

Cashback leverages the power of affiliation by involving a three-way relationship relationship between a merchant, an Internet user and a commercial partner (the cashback site).

To get started, the e-merchant must register on a dedicated site (Igraal or Poulpeo, for example). This allows them to appear in the partner’s business directory and link to their store. So when a user wants to make a purchase using cashback, he or she will go through the same partner who will manage all aspects of post-purchase commission payments.

Depending on the site, the Internet user will be able to recover the amount of his/her kitty by bank transfer, cheque or gift card (mainly). However, this can only be done above a certain cumulative amount.

Good to know: a web surfer knows the cashback amount directly on the ad.. Generally, this takes the form of a percentage (cashback rate), but sometimes cashback is expressed in euros.

Is cashback in France reliable?

The cashback principle is reliable. However, this practice can be prone to scams.

For Internet users, this can take the form of subscription cashback the amount of which turns out to be far greater than the sum recovered.

On the advertiser’s side, it’s important to choose its partner sites carefully to make sure you don’t damage your brand image.

Please note: this advice can be applied to all affiliated partners.

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How can I make money with cash back?

As mentioned above, cashback is a solution that enables Internet users to recover part of the amount invested in a purchase in the form of a commission. It’s then up to you to unlock it whenever you want (taking into account the conditions imposed by the cashback site).

In recent years, it has been interesting to note that cashback has also found its way into physical stores.

Traditional banks have begun to offer a cashback system card cashback system. The principle: a consumer who uses his or her bank card to pay for purchases from partner merchants is reimbursed a portion of the amount.

Alternatively : cashback with the cashback system by paying by credit card for a product that is more expensive than the advertised price, in order to recover the difference in cash. The aim here is to dispense with distributors in order to obtain species. Please note: retailers are not obliged to offer this new service.

The advantages and disadvantages of cashback for sales sites

As we have already mentionedcashback is as much about customer acquisition as it is about customer loyalty. By offering this type of solution, you can boost your online visibility and thus win new customers by reaching a wider target audience. Which generates, as you may have guessed, more sales and greater customer loyalty.

That being said, although cashback offers you the opportunity toincrease your salesyou need to be careful about the amount of commission in order not to sell at a loss. What’s more, the online privacy legislation is increasingly strong. Tracking systems and the storage of sensitive data must therefore be taken into account.

Which is the best cashback site? (Igraal, Ebuyclub, Poulpeo…)

The popularity of this system has led to the creation of many new websites.

Among the best known are Igraal, Poulpeo and Ebuyclub. Founded in 2006, 1999 and 2009 respectively, these three specialist sites boast millions of members and work in partnership with France’s leading retailers and e-tailers.

However, other sites are currently being set up.

These include :


  • Widilo
    created in 2019, which offers an excellent loyalty program and the opportunity to earn cashback on purchases made by friends and family;

  • Capital Koala
    created in 2011, which allows you to transfer funds to your children’s passbooks;

  • Joko
    created in 2018 to facilitate access to cashback for purchases in physical stores;

  • Swagbucks
    created in 2008, which, in addition to cashback, offers various ways to earn money online.

Now that you know everything, all you have to do is get started yourself, with the support and expertise of Casaneo’s experts.

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