Cashback
British shoppers are missing out on £3.2 billion each year, according to new research from price comparison site, Kelkoo. That’s £273 million of untapped cash that could be earned per month - just by taking advantage of cashback services when shopping online.
Cashback enables shoppers to earn money by receiving cash when they make purchases from e-tailers participating in cashback programmes. Online retailers normally offer cashback as a percentage of the buying amount. Cashback services are free to use, with customers able to earn money immediately.
The study of 1,000 shoppers reveals the average UK consumer spends £450 on goods including food, DVDs, cosmetics, clothes and travel each month. According to the Interactive Media in Retail Group (IMRG), 17% of shopping is done online. With 51 million[ii] adults in the UK and an average cashback rate of 7% available for online purchases, that’s £273 million per month that could be earned in cashback - equivalent to a staggering £3.2 billion a year. DVDs, books, CDs, consumer electronics and travel proved to give the greatest cashback rewards.
Personal Finance expert, Jasmine Birtles, comments: "Here’s an opportunity for consumers to make money each month, just for spending! Don’t miss that opportunity. Any time you want to buy something online check first that you’re getting the best price and then see if you could get cashback for it.
"Over a year your earnings could build up to hundreds of pounds. That’s what I call savvy shopping."
The research also revealed the reason Brits are not cashing in is due to a lack of knowledge about cashback services, with a quarter not knowing they even exist and 40% having never used a cashback website.
And of those who had taken advantage of the offer, a fifth admitted that they had been discouraged from using the service because they weren’t completely clear on how it works, while 30% said that they didn’t feel that cashback was available on the products they were most likely to purchase.
What’s more, 72% of respondents admitted that if they knew more about the benefits of the service then they would be encouraged to shop more.
Commenting on the results, Bruce Fair, managing director, Kelkoo UK said, "It’s remarkable that these untapped millions go unclaimed because online shoppers don’t take advantage of cashback services.
"In many households, money is tight at the moment, so shoppers could really be benefitting from the additional money by ensuring that they are making the right decisions in order to get the best deals on their purchases."
"It seems many people are not cashing in because they are confused or ill-informed about cashback offers, but it’s actually a very simple process. Anyone can set up a cashback account via Kelkoo and it is very easy to use.
"Customers can earn cashback with very little effort. Once an account is in place, they can continue to shop as normal and watch the money add up. The fact that 74% of those questioned in our survey said that they would increase loyalty to retailers offering cashback services should really encourage more retailers to get on board."