subject: The Cashback Conundrum [print this page] The Cashback Conundrum The Cashback Conundrum
The Cashback Conundrum
Online shopping has experienced immense growth since its genesis in 1979. This growth has been especially significant in the past decade, as online shoppers spent an excess of 250 billion in the United Kingdom alone. A record 832,000 changed hands online in a single minute on 6th December 2010. With the internet rapidly superseding traditional media channels such as television, newspaper and radio, and the ability to purchase goods from mobile devices becoming increasingly common, online shopping is set to continue its phenomenal growth into 2011 and beyond. Over 1 billion people worldwide have made online purchases so far. In many cases, online shopping accounts for over 50% of certain types of goods sold such as electronics, books and DVDs.
Cashback on online shopping means getting a certain amount or percentage of the cost of your purchase credited back to you. There are many cashback sites in operation, which are paid a commission by online retailers for every paying customer they refer. The cashback you receive is a portion of this commission. Obviously, getting cashback on your purchases is a good thing, but cashback sites are not without their disadvantages. In particular, some sites charge a membership fee and payouts can sometimes be slow in coming.
It is important not to be blinded to the possibility of getting a better deal elsewhere by an offer of a sizable cashback on your purchase. If the original purchase price is too high, you might break even or be slightly worse off after factoring in cashback. Prices for the same goods can vary significantly in the online marketplace, so don't be blinded by a large cashback offer shop around! Furthermore, there are numerous reports of customers not being paid cashback on their purchases, so the guarantee that cashback will be paid isn't absolute. This may happen because of disputes between the product providers and the cashback company, or because the cashback company has gone bust.
Many cashback sites have a minimum payment threshold. This means you cannot redeem your cashback payment until it has reached a certain amount, often between 20 and 35. Therefore, you should consider using one, or at most, a few cashback sites if you don't shop online often. Another thing the small-scale online shopper should be aware of is that many cashback sites charge administration fees. It is advisable to familiarise yourself with any extra costs a cashback site may charge before signing up.
Another point to consider is that there is also a Utility company that offers a Cashback card which can be used with it's retail partners to give the cashback amount as a credit on the customer's next Utility bill a very useful way of reducing your Utility bill. Cashback with this company is between 3% and 7% depending on the individual retailer involved clearly this can lead to a significant reduction in a customer's monthly Utility bill.
If you follow these guidelines, you will find that cashback shopping is an excellent way to recoup some of the money you will inevitably spend online. However, in order to get the best value, you should check up on as many cashback sites as possible, learning how much cashback they offer on various purchases and familiarising yourself with their terms and any additional charges.
