Online shopping has become very big business over recent years, and so far 2010 has proved to be a year of further growth. In April it was reported that more than half of the population in the UK now do some of their shopping online. There has also been a large increase in the number of people who shop online on a weekly basis. In 2009 the figure stood at 8.4 million but this year it has already reached 10 million.
A recently released report stated that the average amount spent per month per individual on internet purchases has also increased to a figure of £71.00.
However, internet shoppers are like those in the high street and are always on the lookout for a bargain, so it should come as no surprise to learn that cashback sites are also growing in popularity.
These sites offer customers cashback for purchases they make online if they buy through a link found on the cashback site. The cashback site receives a commission from the retailer which means it can pass some of that commission to the purchaser as a “cashback” amount.The commission or cashback received is generally an agreed percentage of the cost of the goods or services purchased but in some case a flat fee will be paid regardless of the cost of the item purchased.
Clearly this arrangement is beneficial to the cashback site owner who keeps some of the commission from the retailer as well as the end consumer who gains an online discount for shopping via a cashback site.
The Pros and Cons of Cashback Sites.
As you might expect, cashback shopping does have its pros and cons. The main advantage is obviously the cashback that can be received just by doing your normal shopping. Different sites and companies offer different percentages of cashback so the sums of money can mount up quite quickly if you shop online on a regular basis.
It is also the case that some companies offer limited time opportunities to earn a flat fee cashback. Once again this adds to your total amount and makes it worth using the sites on a regular basis to do your online shopping.
However, there are some disadvantages too. For instance some websites charge membership fees for people to join them in the first place. While many sites do not make a charge, those that do will eat into any cashback that you earn with them.
You may also have to wait a while to get your cashback. Your purchase has to be verified before any money is paid back to you, and this can take some time to happen. On odd occasions the system may not even recognise that you have made a purchase and you will lose out on the cashback that you should have earned.
Cashback is Available in Other Ways as Well.
The popularity of cashback has grown to such a level that other companies are also offering various ways of earning cashback. Some of these companies are not present on the traditional shopping portals but instead are offering cashback through their own website.
A good example of this is a utility company that has created a “Clubhouse” section for customers on their website. The idea is that people can shop online and benefit from receiving cashback on their next utility bill. This is a more unusual way of creating a cashback opportunity but it is sure to be popular with people who want to reduce their utility bills in whatever way they can.
There is no doubt that online shopping is continuing to become more and more popular over time. Cashback sites can make it even more worthwhile to shop online if you know where to go. Have a browse around and find out what is available!
