Business Model for Rakuten

On It · ‎03-15-2021

It seems I am always late to the party. Several have mentioned Rakuten on this forum and its cash back program. Who or what funds the cash back? Is it a fee charged to the retailer? Does Rakuten have a source of revenue? I am intrigued by the posts, but having been in retail I know the profit margins. Somebody is having to cover these costs. My bet is on the consumer paying for them whether with across the board higher prices or larger shipping and handling fees. Anyone out there who knows how it is funded?

Kachina624 · ‎03-10-2010

@On It I doubt if anyone on the customer side of these rebate sites knows what the agreement is between QVC and the rebate. Obviously, QVC subsidize the rebate but as a member of Mr. Rebates, I pay no more than any non-member for merchandise or shipping and there's no membership fee of any kind. Anyone who doesn't take advantage of this service is throwing money away. This is from my account with Mr. Rebates which I've had for 10 or 12 years. I have my rebates deposited in my PayPal account.

New Mexico☀️Land Of Enchantment

On It · ‎03-15-2021

@Kachina624 Wow! That is a lot of money. I think the cost then is probably added across all items to be paid by all customers. I am just one of those people that has to know how things work. Thank you for sharing.

Puppy Lips · ‎05-09-2010

I joined Rakuten a few years ago. I wish I had been doing it all along as I order a lot. I do think that getting this money back, especially when it is a higher percent, encourages purchases. So I think more is sold. I imagine the retailer covers part of it. What I wonder is - does the retailer get a say in what percentage back and on what days? Or does Rakuten decide that? Is it random? Is it mapped out?

Always remember that you are absolutely unique. Just like everyone else. Margaret Mead

DiAnne · ‎09-22-2010

I started out with Rakuten but switched to Mr Rebates. I like the fact that I can request a check from them instead of getting little random checks whenever. Many of the higher end stores do not use rebate sites.

Pearlee · ‎06-11-2011

@DiAnne wrote:
I started out with Rakuten but switched to Mr Rebates. I like the fact that I can request a check from them instead of getting little random checks whenever. Many of the higher end stores do not use rebate sites.

@DiAnne The Rakuten checks aren't "random." They are quarterly, like clockwork. The next is due to be mailed out mid next week.

To the OP, I read somewhere not too long ago, but can't now remember where, that the retail establishment pays Rakuten to fund the rebates. I've been with them (formerly Ebates) for years with no problems. Typically on QVC free S& H Sundays, Rakuten offers 10% rebate for QVC which makes the free S& H deal even better.