Pretty much anyone that shops online knows about discount code directories but what value do they have and how do they compare to cashback websites? Which of these two offerings delivers the best value for money and are there better ways of savings money?
The theory behind discount voucher codes goes back a long way; the most basic form of transaction heralds from the very first days of bartering. Traders openly accept negotiations on the pricing of their wares but there was always a profit margin involved and the concept still exists today. The major difference between coupons and bartering being that the vouchers have a fixed percentage or an additional incentive to get you to buy more. In most cases, a retailer will provide a reasonable discount on a loss leader or high label product. Once at the retailers website, the online shopper will be encouraged to add even more deals to the bundle. A classic example of this practice is Amazons “People who bought this also bought…”.
Although not strictly a discount code, the most sought after vouchers tend to be those offering free delivery on large consumer electronics. We live in an age where looks and functionality are the ideal and most online sellers target the upsell – “for a few more pennies you can have the best thing since sliced bread”! Convenience is key; whilst some shoppers still experience the excitement of travelling to a store to view and touch an lcd TV, the constraints placed on our time makes online shopping a more viable option.
Cashback websites offer shoppers a different way of saving money and the idea of getting money back every time you buy can be a very powerful incentive. Money back offers involve the shopper buying a product only to receive a percentage of the full price delivered back to a holding account. This money can then be used of reduce the price of future transactions or transferred back to the shoppers bank account.
The obvious advantage offered by cashback deals is there is no requirement for the buyer to do anything; simply shop and the retailer will credit a percentage of the sale price back to you. The main difference between this model and discount codes is value. Most retailers will offer a percentage larger saving through their discount codes, although this may not always be the case. A prime example of the most heavily discounted goods comes in the form of end of range stock which the shops are keen to shift before new lines arrive. In this case, some shoppers have reported savings of over 90%!
Each of the methods detailed above brings shoppers the chance to make some amazing savings – the discount and coupon code industry has seen meteoric growth in traffic and shoppers using dedicated directories that list vouchers from thousand of retailers. It would appear the types of websites offering these deals have an almost guaranteed future.
Whichever route you take, the arguments are pretty compelling. In a day and age where we’re trying to get the most value for money, discount vouchers, either electronic or physical, and money back websites offer shoppers the chance to make significant savings. Are you using them?