How do cashback sites work?

Resourceful shoppers are constantly searching for ways to make their money go further. One increasingly popular strategy is utilising cashback platforms. But what exactly are cashback sites, and how do they work? Read on to find out more!

What Does Cashback Mean?

Cashback, in its simplest terms, refers to getting back a portion of the money you've spent on purchases. This can take various forms, such as cash rebates, rewards points, or credits applied to future purchases. The allure of cashback lies in its ability to provide consumers with tangible savings on everyday spending.

What is Cashback?

Cashback is a form of incentive offered by retailers or credit card companies wherein a percentage of the purchase price is returned to the buyer after the purchase. It's essentially a way for consumers to earn back a portion of what they spend, effectively reducing the overall cost of their purchases.

How Does Cashback Work?

Cashback sites serve as intermediaries between consumers and retailers, offering shoppers the opportunity to earn cashback on their purchases. Here's a step-by-step breakdown of how cashback sites usually operate:

  1. Sign-Up: To begin, users must register an account with a cashback site. This typically involves providing some personal information, such as an email address and password.

  2. Browse Offers: Once registered, users can browse through the cashback site's list of affiliated retailers and available offers. These offers may vary in terms of cashback percentage, eligibility criteria, and expiration dates.

  3. Click Through: When a user finds an offer they're interested in, they can click through the cashback site to the retailer's website. This click is crucial, as it establishes a referral link that tracks the user's purchase back to the cashback site.

  4. Make a Purchase: Upon reaching the retailer's website via the referral link, the user can proceed with their purchase as they normally would. It's important to note that the user must complete the transaction in the same browsing session initiated through the cashback site to ensure eligibility for cashback.

  5. Retailer Pays Commission: Once the purchase is made, the retailer notifies the cashback site of the transaction and pays a commission to the cashback site for referring you. The cashback site passes a portion of that commission back to you.

  6. Redeem Rewards: Once a user accrues a certain threshold of cashback earnings, they can redeem their rewards in various ways, such as through PayPal transfers, gift cards, or bank deposits.

Shopify Cashback

Shopify Cashback usually refers to the practice of offering cashback incentives to customers who make purchases from Shopify stores. Merchants can leverage cashback programs to attract and retain customers, incentivising repeat purchases and fostering loyalty. By implementing cashback features into their Shopify stores, merchants can tap into the growing demand for savings-oriented shopping experiences.

Shopify Cashback Apps

Shopify's app store has many cashback apps which allows merchants to choose the cashback app that is best suited to their needs. These apps include a variety of features including gift cards, store credit, loyalty programs, as well as standard cashback incentives. Most of them are super easy to install, however, you may need to get a Shopify app developed specifically for you in case you need to do something a bit different and standard options are not sufficient.

Shopify Cashback App Examples offers Shopify Merchants the ability to create loyalty programs, gift cards and other rewards features which help to improve retention rate and customer LTV.


The GiftKart app also offers similar loyalty and rewards programs including tiered cashback programs to help retain customers.

Overall, cashback sites and apps offer consumers a simple yet effective way to save money on their online purchases. By leveraging referral links and partnerships with retailers, these platforms enable users to earn back a percentage of their spending as cashback rewards.

Whether through traditional cashback sites or specialized Shopify apps, the allure of earning money back on purchases continues to resonate with consumers seeking value in their shopping experiences. As a Shopify merchant, it is certainly worth considering harnessing the power of cashback to provide more value to your customers.