Discount Codes vs Cashback Sites

There’s no denying that over the past few years, the number of discount code websites has sky-rocketed but what other options are there and how do they stack up against the vouchers and promotional codes that are on offer?

One of the most popular ways to save money online is to use cashback website; there are plenty of them out and they are a very attractive way of saving money.

Let’s take a look at the differences between the two types of site.

Discount and Voucher Codes

The concept is pretty simple; you want a new 32 LCD TV. You’ve already researched the model by going down to your local store and carried out a side by side comparison and decided you want a spanking new LED model from Samsung. But are you really going to pay those instore prices and then lug it home (or take the extortionate delivery option)? Probably not. You already know that there are a swathe of voucher sites that offer money off codes and free delivery options.

So, you go online and use a relatively simple search such as “UE32B6000 discount code”. To be fair, it’s not often that you’ll find a discount that relates directly to the product you want so you’re probably better off searching for a code that is offered by a specific retailer i.e. Comet discount code.

You’ll then be served up a selection of websites that offer discount codes. Top tip: take your time and check out the top ten sites on the front page of the search engine you use. In some cases, the vouchers will be out of date and you may end up buying without get money off the final price.

There seems to be two different approaches to serving up discount codes: 1. Click to reveal and 2. Copy and paste. The first option requires you to click a link or image and only at that point is the code shown. In most cases, the voucher code is then added to the corresponding box on the checkout page. Make sure this happens otherwise you won’t get any money knocked off the price.

The second option, copy and paste, requires you to manually copy the code shown on the voucher site and paste it in at the checkout just before you commit to buying. A slightly more tedious way of doing things but makes you stop and check that the code has been added to the coupon code box. The copy and paste option is my preferred option.

That’s all there is to it – couldn’t be simpler.

Cashback websites

Cashback sites are a more recent newcomer to the online shopping scene and they offer you a range of ways to get money back off a whole range of goodies including daily shopping, insurance and credit cards. With some users saving up to £1,000 a year through these types of website it’s easy to see why they’re so popular.

How do cashback sites work?

There a whole range of cashback sites that let you set up a free account. All you then need to do is search the site for the product you’re interest in and buy it. Once you’re payment is accepted a payment, in the form of a percentage of the purchase price, is credited back to you.

This type of site works on a commission basis – you buy through a cashback site, they earn a commission then send you a percentage of the money they receive.

Admittedly, this is much simpler than the discount code approach so why would anyone bother using codes? Two factors; the overall savings and personal preference. To be fair, the money back sites tend to have a greater selection of products available to buy which would tend to make them the more attractive option. But, in many cases, discount codes will save you more money. Yes, it’s nice to get money credited back to your account but wouldn’t you rather use a voucher and get 10% off rather than 3% of the retail value back?