What is Cashback?
Money paid back to customers in cash after they make a purchase, cashbacks are rewards given to customers for making purchases from a retailer. The amount paid back (cashback) is a percentage of the amount the customer spent on an item. The cashback percentage varies from retailer to retailer, with some businesses offering higher cashback rates than others.
Using Cash-Back in Online Arbitrage Purchases
Large amounts of websites will pay you a percentage of the total checkout price for clicking through their affiliate links, usually between 2-13%. If you are spending $500 on inventory with a 10% cashback offer, you are getting $50 back for free. This will increase your margin in Online Arbitrage business.
The easiest way to do this is to search CashbackMonitor.com for the store you are sourcing, and see which website offers the highest % of cash-back for your purchase. However, after working with different cashback website you may find your favorite ones.
Top Cashback Websites
There are over 100 cash-back sites available, but here are some favorite ones:
TopCashback’s tagline is “USA’s most generous cashback site”—and boy, does it live up to it. Aside from having no minimum payout threshold (meaning you can receive a check whether your balance is $.01 or $100), the site also transfers 100% of its affiliate commissions from partners to its users.
One interesting feature of TopCashback is that you can also earn cashback when shopping offline. Simply go to the Printable Vouchers section of their website after you sign up and print out the coupons you want to use during your in-store shopping. The only catch with this feature is that printable vouchers seem to be much less popular than online vouchers and TopCashback doesn’t always have them available.
In terms of shopping online, TopCashback offers earnings from purchases through Wal-Mart, Amazon, American Eagle Outfitters and Apple. Most cashback rates hover around 3 percent to 7 percent cashback, but you can also find deals for 10, 12 and 15 percent cashback. Additionally, some retailers offer fixed dollar amounts back, which range from $50 to $100.
TopCashback also offers coupons and cashback for retailers in the UK and India.
BeFrugal is a cashback site that works similarly to Ebates. When you shop through BeFrugal, you earn cashback at hundreds of different websites. If you install their browser extension, it’ll alert you about cashback offers while you browse.
Other ways to increase your savings here are searching for promotional codes, coupons, and deals on the site. Check the Deals section of the site for fresh limited-time offers and daily deals.
BeFrugal allows you to get paid by check, direct deposit, PayPal, and gift cards. Creating an account on the site is free and when you sign up, you also receive a $10 bonus.
With over 3,000 online vendors (including retailers like Wal-Mart, Ralph Lauren and Bath & Body Works), ShopAtHome is a cashback site that can save you money on just about anything. Signing up for an account on the site is free and, once logged in, you can start hunting for online and in-store cashback deals.
Note: You must be logged into your ShopAtHome account before clicking into any of the retailers’ sites or your cashback rewards may not apply.
You can also earn cashback by accumulating points in the ShopGold Rewards section. This section of the site gives you points for taking surveys, playing games and inviting your friends to become members. 2,000 ShopGold points earns you $20 in gift cards, 4,000 earns you $40, etc. Your Gold Rewards points can be redeemed for gift cards only—no checks or PayPal deposits.
In terms of redeeming the cashback you earn from shopping (which is different than the ShopGold Rewards), you need to acquire a minimum of $20 in cashback in order to receive a rebate check from the site. Most cashback deals are based on purchase percentages and range from 1.5 to 20 percent cashback.
Coupon Cactus provides cashback from over 4,000 retailers, including Target, Old Navy, Sears, and Walmart. Signing up for an account is free and the site will give you $3.00 for doing so.
This site offers a nice variety of coupons; some will get you a flat dollar amount off from your purchase through select retailers, while others are based on a percentage of your total purchase amount. Every retailer’s coupons have their own stipulations and vary in terms of the amount of cashback you’ll get.
It’s nice that the minimum redemption amount for Coupon Cactus is less than many other cashback sites—only $10.00 You can get your cashback via a check or PayPal and cashback amounts are paid to site users once every three months. Also, if you don’t quite earn $10 cashback, Coupon Cactus will let you keep what you did earn and roll it over into the next payout period.
Rakuten is free to use and offers cashback deals for a variety of retailers including Nordstrom, Panasonic, Groupon, and Amazon. When you make your first purchase via Rakuten you earn a bonus gift card for $10 (if you want to apply it to Macy’s, Wal-Mart, Target or Kohl’s) or $5 (if you go want to apply it to Rakuten).
Rakuten lets you earn cashback from over 1,800 retailers and, to date, have paid over $250 million to its users. Much like Coupon Cactus, Rakuten sends you your cashback rewards once every three months and gives you the option of receiving your money via check or PayPal.
Like the other sites discussed here, Rakuten’ retailers offer varying degrees of deals, most of which are a percentage of how much you spend on the retailers’ sites. Some rates hover around 1.5 to 2 percent, while others allow “up to” 12 percent or more. One especially nice feature about Rakuten is that it features “Double Cashback” deals, where retailers are offering twice as much the cashback as they normally would.
The best thing about Swagbucks is that there are so many ways to earn points – known as ‘Swagbucks’ or SB. Swagbucks will send you a daily email listing the best ways to earn SB; these could be as simple as signing up for an email newsletter. You can also earn by taking surveys conveniently on the app, watching videos, and playing games on their website.
There’s also a significant amount of points to be made by joining and encouraging others to do the same. You’ll get $5 for signing up (if you spend $25 in your first month of registration) and, if you refer a friend, you’ll get a bonus plus a percentage of the Swagbucks your friend earns. Once you make enough SB, you can redeem them for gift cards or even a PayPal transfer.
Other popular cashback website
Double-Check Your Coupon Codes After Clicking Through a Cash-back Site
After you use a cash-back site link, it will redirect you back to the store you are making the purchase from. At this point, you need to double-check the coupons you previously entered to confirm they are still registered in your cart. Sometimes the cash-back site affiliate links strip the coupon codes.