How does cashback work
Published
Share
In the last decade, the emergence of a handful of retail-focused cashback platforms has also made it possible for Australian shoppers to earn money back on their purchases.
"At the beginning I was pretty suspicious. I was like, what's the catch here? Why are you just going to be given money back on your purchases? But I've been using them for a few years now, and I have been able to save quite a lot of money," says Queenie Tan, licenced finance content creator.
So why are shoppers given money back at all? As Tan explains, retailers essentially give cashback platforms a cut of the sales, which then flows through to customers.
"The way that it works is that a lot of these cashback websites - whether it's ShopBack, Cashrewards, TopCashback, or whichever one you choose - have relationships with brands.
"And because these cashback apps refer customers to these brands, the brands share commission from the revenue with them, and some of it is then passed down to consumers."
Get stories like this in our newsletters.
