What makes cashback sites so popular?

Cashback sites has been around for over 10 years in the UK and US, but only in the last few years have they really become popular. So much so that in the UK, the aggregate traffic to cashback sites is greater than the traffic to daily deal sites like Groupon. So what makes this concept so popular?

The idea is simple, yet powerful. A cashback sites sends traffic to ecommerce websites, who in turn pay the cashback site a commission. This is the normal affiliate model. However, the cashback site now passes this commission back to the users as cashback. So just by going via this site users now save money.

Most cashback sites also have coupons, so users can save with the coupon code and in most cases get cashback on top. This makes the model more compelling for users than traditional coupon websites. Moreover, like most good internet ideas, most cashback sites are completely free to use.

Furthermore, cashback sites usually work with all the major ecommerce players in the respective geography. For example in the UK leading cashback sites like Quidco and Mail Rewards Cashback work with over 3,000 retailers. In India cashback sites like Cashkaro.com work with over 200 top retailers like Yatra, Myntra, Jabong and more.

Editor’s Note: Rohan Bhargava is the founder of Cashkaro.com, one of India’s leading cashback and coupon websites. Prior to founding Cashkaro, Rohan spent several years in the hedge fund industry in London. Rohan graduated from the London School of Economics.


So next time you shop online be sure to go via a cashback site. Why pay more?

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