Long considered a simple “good plan”cashback has become established in the consumption habits of the French. The principle? Recover part of the amount of your purchases after ordering on a partner site via a specialized platform such as iGraal, Poulpeo or Widilo. According to Pauline Duquesne, Head of Marketing France at iGraal, a French cashback platform: “cashback has become a real budget optimization toolt “. Thus, nearly one in two French online shoppers now use this type of service, according to a Rakuten France/Ipsos study. Among 16-34 year olds, this proportion even rises to 70%.
“Consumers are increasingly seeking to optimize their daily spending without changing their consumption habits”observes Pauline Duquesne. The cashback market could almost double worldwide by 2029, driven by the rise of e-commerce and specialized mobile applications. It would go from $7.48 billion in 2023 to $15.35 billion in 2029according to ResearchAndMarkets. Today, cashback therefore concerns thousands of brands in a wide variety of sectors: travel, fashion, high-tech, food, energy and even insurance. This promise of money ” free “ however, is based on precise rules and a few technical pitfalls.
Cashback, how does it work?
The principle is simple: before making an online purchase, the user goes through a specialized platform such as iGraal, Poulpeo or Widilo. Once redirected to the partner merchant site, they make their purchase normally. In exchange, the merchant pays a commission to the platform for bringing them a customer. Part of this commission is then returned to the consumer in the form of cashback. “Cashback allows you to recover part of the money spent when making an online purchase. In fact, the user goes through a platform like iGraal before purchasing from a partner brand”summarizes Pauline Duquesne.
Cashback can take several forms:
- a percentage of the purchase amount;
- a fixed sum;
- or one-off bonuses during commercial operations.
Unlike traditional loyalty programs, this is real money. “Once validated, the cashback is credited into a pot that the user can transfer directly to their bank account and use freely »specifies Pauline Duquesne.
Where does the money returned to consumers come from?
Cashback is not financed directly by the platforms. The money comes from partner brands. “When an e-commerce site makes a sale thanks to iGraal, it pays us a business referral commission. A majority of this commission is then returned to the consumer”explains Pauline Duquesne.
For merchants, this model remains profitable: it allows them to attract new customers and increase their sales. The platforms keep part of the commission collected. Today, thousands of sites offer cashback in a wide variety of areas: fashion, travel, high-tech, telephony, insurance or food.
Why are some cashback refused?
This is one of the main frustrations of users: a cashback displayed at the time of purchase can ultimately be refused several weeks later. “Cashback may be refused if the merchant considers that the conditions have not been respected »explains Pauline Duquesne.
Several situations can lead to this refusal:
- an order cancellation;
- a product return;
- use of an unauthorized promotional code;
- or a technical monitoring problem.
“ Final validation always depends on the merchantbecause it is he who confirms that the transaction is indeed eligible », she recalls. In practice, cashback often goes through several statuses before being definitively acquired: “pending”, then “validated” after confirmation from the merchant.
The most common user errors
Cashback relies on relatively sensitive digital tracking tools. And some errors simply prevent the system from working. “The most frequent error remains forgetting to activate cashback before ordering »underlines Pauline Duquesne.
Other problems recur regularly:
- refusal of cookies;
- the use of an adblocker;
- opening multiple tabs before purchasing;
- or using a price comparison tool just before ordering.
“These are often technical details, but they have a direct impact on the appearance and validation of cashback,”she insists.
How much can you really earn?
The gains remain very variable depending on consumption habits. For a casual user, the savings may seem modest. But some profiles accumulate much larger amounts. “On average, an iGraal member saves around 120 euros per year thanks to cashback »indicates Pauline Duquesne. Users who consolidate their daily expenses more (travel, insurance, subscriptions or high-tech purchases) can save several hundred euros per year. Some one-off operations even allow you to obtain several dozen euros of cashback on a single order.
Beware of the trap of overconsumption
With inflation, cashback has become a real reflex “purchasing power “. But it can also push some consumers to buy more to take advantage of the offers. “Cashback must remain a way to save on purchases, not a reason to buy more »warns Pauline Duquesne. The main advice therefore remains simple: use cashback only for purchases already planned. “The good reflex is to activate cashback whatever the planned purchase”she concludes.
