Earning Rewards and Cash Back While Shopping Online
5 Min Read | Last updated: July 17, 2023
This article contains general information and is not intended to provide information that is specific to American Express products and services. Similar products and services offered by different companies will have different features and you should always read about product details before acquiring any financial product.
Explore the world of online shopping rewards and cash back programs. Learn how to earn money, discounts, and rewards while shopping online.
At-A-Glance
- More people are shopping online than ever before – and changing the way they shop by cashing in on online portals and apps that deliver cash back.
- How much cash back you receive will depend on multiple variables like which portal you use, what you’re buying, and how you pay.
- Credit cards can be another way to earn rewards points and cash back.
Who doesn’t like a bargain? Or getting payback for spending you planned to do anyway? Enter rewards and cash back for shopping online.
Online shopping has been experiencing strong growth over the last few years. According to a report by Morgan Stanley, global e-commerce comprises an estimated 22% of total retail sales, and could be on track to grow from $3.3 trillion today to an estimated $5.4 trillion in 2026.1
At the same time, people have been changing the way they shop online, actively seeking out rewards and cash back from a growing array of mobile and web-based options. Among these are online shopping portals, cash back apps, and digital loyalty programs, and rewards and cash back offers linked to credit cards. Many work in stores as well as online.
Here are some of the current trends in rewards and cash back for shopping online.
What Is an Online Shopping Portal?
Online shopping portals aggregate access to a variety of retailers and offer rewards when you do your shopping through the portal. To use an online shopping portal, you sign up as a member, usually at no charge. Then you receive a percentage of the money you spend as cash back, often at a later date, when clicking through to retailers from the site or its mobile app.
Just how much you get depends on the product you buy, the portal you use, the day you’re shopping, and other factors. But it does add up: One of the largest online shopping portals reports more than 12 million U.S. members, who it claims have earned over $1 billion in cash back from 3,500 stores. The portal shares the commissions it receives from retailers, and distributes members’ payments quarterly.2,3
Some of these cash back sites and apps require more of shoppers’ time and attention than others. To minimize your “overhead” effort, some apps offer extensions to your web browser that automatically alert you of cash back opportunities when you’re shopping at the site of a favorite store.
Different Ways to Earn Online Shopping Rewards
There are an increasing number of variations on the online shopping rewards theme, with some rewarding you for participating in market research surveys, or as you submit receipts, watch videos, and scan barcodes in-store. Among online e-commerce portals, participating stores and brands can vary from one service to another, and also change over time. In place of cash, shoppers might also accumulate rewards points, potentially accumulating enough to qualify for store discounts or gift cards to leading brands.
Some airlines have their own portals that let you shop at hundreds of stores to earn miles – and get additional miles for using their branded airline credit card when you buy. Companies in the business of supplying coupons and promo codes for online discounts have also expanded into cash back and other rewards. With other portals, you can opt to give rewards to charity when you shop, instead of harvesting the rewards for yourself.
With so many options, there are even online “monitors” that continually update available rewards for various stores from a range of portals, apps, and credit cards.
Earning Rewards on Credit Cards, Loyalty Programs
Online shopping portals aren’t the only way to go for earning cash back, points, gift cards, and other rewards. Credit cards have long offered such rewards. Some credit cards offer rewards points or cash back for spending in certain categories, such as groceries or online retail purchases, while others offer rewards across the board. Some shoppers combine points from rewards credit cards while spending on cash back portals to increase their savings.
Meanwhile, loyalty programs have evolved over the past 20 years, from the old paper punch card approach – like buy 10 to get one free – to plastic membership card to key fob to smartphone apps. Now, many retailers offer rewards programs, including loyalty points, that reward customers for their purchases.
What to Consider When Using Cash Back Portals
While cash back sites can earn you money, they may also increase your spending by turning shopping into a game. A survey by the Center for Generational Kinetics came to a similar conclusion, with 74% of Gen Z and 70% of millennials saying they spend more money online if they know they will instantly receive 5% cash back.4 Shoppers might want to track their spending closely.
It’s also a good idea to research portals in advance to be sure of their legitimacy and to understand how quickly they pay out, whether they require a certain threshold of earnings before paying, and whether you receive your cash back as a digital payment, check, or gift card.
The Takeaway
Cash back and other rewards for online shopping are proliferating, with shoppers using web-based portals and mobile apps to earn back a percentage of their purchase price at retail sites of all kinds. The deals come at a good time, with people shopping online more than ever.
1 “Here's Why E-Commerce Growth Can Stay Stronger for Longer,” Morgan Stanley
2 “Company Overview,” Rakuten
3 “Start Shopping Smarter,” Rakuten
4 “Dosh Insights: A study from the Center for Generational Kinetics,” Dosh
Karen Lynch is a journalist who has covered global business, technology, finance, and related public policy issues for more than 30 years.
All Credit Intel content is written by freelance authors and commissioned and paid for by American Express.
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