Does Rakuten Really Save You Money?
Rakuten is a rebate website that partners with over 3,500 retailers to give you cash back on products you are already buying. You can earn up to 40% cashback, though 5-10% is a more common number, which is still a lot for not a lot of work.
How Does Rakuten Make Money
Rakuten can offer such discounts because they work on a commission. Retailers give Rakuten a commission for sending paying customers to their stores. Rakuten then splits that commission with you in the form of a rebate or cashback.
Anytime a customer visits a store via Rakuten's website, that store will know Rakuten referred them. Any purchase the referred customer makes will result in a commission to Rakuten, which they share with the customer. So, if the commission is 10%, Rakuten might give 5% in the form of a check or PayPal deposit.
For example, you are in the market for a new laptop, and find that Best Buy has the lowest price. To make the purchase, you can head straight to Best Buy’s website, or access their site via a link on Rakuten. By using the link, Best Buy will know Rakuten referred you.
Therefore, Rakuten will earn a commission on your purchase, which they will split with you. You are essentially receiving cash back for visiting a store via Rakuten, versus going there directly. It’s essentially free money!
As mentioned, Rakuten partners with over 3,500 retailers like Nordstrom, Walmart, BestBuy, Dollar Tree, Amazon, Sephora, and Target. Instead of visiting a retailer’s website directly, click through Rakuten so you can earn a commission.
How to Use Rakuten?
Using Rakuten is very easy.
1. Simply sign up for an account.
2. Anytime you shop at a store, visit that store via Rakuten’s website or app.
3. As long as you click from Rakuten, you can earn cash back.
That's it!
It's easy as that to earn cash back on purchases you are already making. You can shop by category, hot deals, or double cash back.
Categories
Rakuten has dozens of categories to choose, everything from Clothes, Electronics, and Health & Beauty, to Shoes, Accessories, and Travel & Vacation. Simply select the category from the drop down list on the top-left corner of the page to see the sellers offering cash back.
Hot Deals
Rakuten Hot Deals display current specials, deals, or promotions retailers are running, on top of the cash back. For example, in addition to 4% cash back at Aerie, their products might be marked down 20-60%. Or in addition to 1% cash back at Nordstrom, you might receive a free gift.
Double Cash Back
On some days, and with some retailers, Rakuten offers double cash back, which offer double the normal amount of rebate. For example, if Adidas normally normally offered 4% cash back, on the select day, you will receive 8%, which is quite a lot. As mentioned, double cash back deals change daily so it helps to check regularly.
Rakuten Extension
Now, it can be inconvenient to navigate to Rakuten to make all your online purchases. Fortunately, they have a browser extension that removes the step altogether, as the extension can track when you’re on a retail partner’s site.
It will create a little pop-up at checkout to show that you’re eligible for cash back rewards. For example, if you visit Macy's website, the Rakuten extension will immediately pop up saying, Activate 4% Cash Back.
And like that, you will receive up to 4% back on the final bill at Macy's. This makes it easy to see which stores have cash-back offers and the amount.
If a store doesn’t offer cash-back, the Rakuten extension will direct you to a similar one that does. For example, when shopping on Home Depot, Rakuten will say, Home Depot does not have Cash Back deals, and display a button that reads Show Stores with Cash Back.
When you click on the on the button, Rakuten will show stores similar to Home Depot that do have cash back, like Lowe's, and the specific amount.
Look at the alternative stores to see if they are selling the product or service you seek. If so, and it's cheaper, buy from that store. If the product is not cheaper, it's best to buy from the original store. It doesn't make sense to spend more money just for cash back.
In-Store Cash Back
The great thing about Rakuten is that you don't have to shop online to save or earn cash back. Their service works offline, so you can earn rebates even when shopping at a physical store. This requires downloading the Rakuten app on an iPhone or Android device.
Click on the In-Store Cash Back Offers section to find offers from various stores. Click on as many offers of interest, then link your credit card to that offer. This should be the credit card you will use at the store.
1. Visit Rakuten and select "In-Store Cash Back"
2. Find the store you want to shop at.
3. Select Link Offer, and add the credit or debit card you will use to make the purchase.
4. Head to the store and make a purchase with the credit or debit card you linked.
That's it!
Rakuten will confirm the purchase retailer and credit your account.
Note: If using a debit card, select “Credit” when paying. That means you’ll sign a receipt instead of entering a PIN. This is the only way Rakuten can track debit card purchases for Cash Back..
Does Rakuten Work?
For the most part the service works and does what it says. If you click to a retail store through Rakuten, you will earn. However there are some caveats.
1. You will earn up to the stated cash back, but not necessarily that amount. For example, if you click on Activate 4% Cash Back at Macy's, doesn't mean you will earn 4% on every item you buy at the store. Some of the items will earn less, like only 2 or 1%. Make sure to check the cash back rate for the item. Therefore, it helps to click on the Sell all Terms and Exclusion link when activating the cash back.
2. As mentioned, Rakuten offers cash back because they earn a commission on your purchase. If they don't earn a commission, they can't offer a cash back. So you have to make the purchase shortly after clicking to the site from Rakuten, or after clicking on the Activate Cash Back button. If you visit other sites during the time, switch to a different browsers or tab, wait too long, or not activate the deal, they may not get credited for the sale, so you won't earn.
3. The goal of cash back is to save money. So, if a product costs less at a retailer that doesn't offer cash back, then it serves to avoid Rakuten, and buy directly from the retailer. For example, let's say Best Buy sells a computer for $400 with 2% cash back. However, Walmart sells the same computer for $350, but there is no cash back. It serves to buy from Walmart as you save $50, vs $8 ($400 * .02 = $8) at Best Buy. Don't get caught up in the cash back and think about the bigger savings.
None the less, Rakuten is a great place to comparison shop. Check out the deals the retailers are offering and pick the retailer with the lowest price and highest cash back.
Alternatives to Rakuten include: