What Is Cashback?
Cashback is a system that allows you to earn a portion of your money back on certain purchases. It typically works through cashback websites or cashback cards, both of which reward you for spending at specific stores or using specific payment methods. A key benefit is that these two methods can often be combined, or “stacked,” to maximise your cashback earnings, giving you more savings on purchases you’d already be making.
Why Does Cashback Exist?
A common question people have when they first hear about cashback is: “Why would anyone give money back for spending?” The answer lies in how cashback providers generate their revenue. Cashback websites and banks that offer cashback cards earn a commission—known as an affiliate fee—every time you make a purchase through their link or use their card.
Here’s an example: If a cashback site offers you 3.5% cashback on a purchase, they might be earning an additional 0.5% commission from the retailer on top of what they pay you. This is how they make their profit while still rewarding you with a percentage of your spend.
Additionally, some cashback services charge a membership fee for access to higher cashback percentages. For example, TopCashback offers a premium membership for £5 per year, which is deducted from your cashback earnings. In return, members receive higher cashback rates and other perks. These fees allow cashback providers to offer even better rewards while generating additional revenue.
By combining affiliate commissions and optional membership fees, cashback services are able to sustain their business model while providing value to their users.
Is Cashback Tax-Free?
In the United Kingdom, cashback rewards are not taxable. HMRC classifies cashback as a discount rather than income, so you don’t need to worry about paying tax on it.
Why Use Cashback?
Cashback is a simple and effective way to save money on everyday spending, whether you’re shopping for personal items or making purchases for your Amazon business. Over time, the savings can add up significantly, especially if you’re strategic about using both cashback websites and cards together. By taking advantage of cashback, you’re essentially reducing your overall costs and increasing your financial efficiency—making it a no-brainer for savvy shoppers and business owners alike.
Cashback Providers for Amazon Business Owners
As an Amazon business owner, keeping costs low and maximising savings is crucial for profitability. Two major cashback providers in the United Kingdom, TopCashback and Quidco, can help you save money on everyday purchases and business expenses. Both platforms work by partnering with thousands of retailers, allowing you to earn money back on transactions like buying stock purchases, packaging materials, or even office supplies. If you’re looking to stretch your budget, these services are excellent tools to incorporate into your business operations.
TopCashback is a favourite among UK shoppers for its high cashback rates and user-friendly interface. It’s free to join, but they also offer a premium membership called “TopCashback Plus” for £5 per year, deducted from your cashback earnings. This premium option grants access to even higher cashback rates and faster payouts, making it a worthwhile upgrade if you’re frequently making purchases. For Amazon sellers, TopCashback’s broad range of retailers makes it easy to find deals on business essentials like packaging supplies or tools to support your operations. When I first started my Amazon business, I used TopCashback to save money on a label printer, which was a vital tool for my improving my workflow. It was a great way to reduce upfront costs while investing in something essential for improving the speed of prep.
Quidco is another popular choice, offering a similarly extensive selection of retailers and competitive cashback rates. Quidco’s Premium membership, costing £1 per month, provides perks like increased cashback percentages and quicker payment processing.
While both TopCashback and Quidco are prominent cashback providers in the UK, I personally recommend TopCashback for Amazon business owners. In my experience, TopCashback consistently offers higher cashback rates and provides a smoother day-to-day user experience. Their platform simplifies tracking earnings and discovering deals. Notably, TopCashback’s customer support is responsive; they promptly address missing cashback issues when contacted. Conversely, I’ve encountered difficulties reaching Quidco’s support team in the past. Utilising TopCashback has led to significant savings for my Amazon business, such as when I purchased a label printer. For a reliable and user-friendly cashback platform, TopCashback is my top choice.
If you’re using TopCashback, I strongly recommend installing their Google Chrome Extension—you can easily download it here. Once installed, the extension provides a helpful reminder whenever you visit a website that offers cashback. A small pop-up will appear in the top-right corner of your browser, prompting you to activate cashback for that site. This ensures you never miss out on earning cashback for your purchases.
Cashback Credit Cards for Amazon Business Owners
Cashback credit cards are a valuable tool for Amazon business owners looking to reduce costs on everyday business expenses or earn points for their spending. By using these cards, a percentage of your spending—whether on packaging supplies, software subscriptions, or inventory—is returned to you as cashback or points. This effectively lowers your overall operating expenses. In the UK, there are several providers offering competitive cashback credit cards designed to suit various business spending habits, making it easier to save while you grow your Amazon business.
Below, I’ve included information on cashback business cards that could potentially benefit your Amazon business. However, please note that I am not responsible for any debt or financial loss that may occur due to poor credit management. Always use credit responsibly and ensure it aligns with your business needs and financial situation.
American Express® Business Gold Card
The American Express® Business Gold Card offers a range of benefits tailored to support Amazon business owners in managing and scaling their operations. One of the most significant advantages is the extended payment period, allowing up to 54 days to settle your balance. This feature can greatly enhance cash flow management, providing the flexibility to reinvest earnings into inventory or other business needs before the payment is due.
Additionally, the card participates in the Membership Rewards® programme, enabling you to earn points on all eligible business expenditures. These points can be redeemed for various rewards, such as travel, gift cards, or statement credits, offering versatility in how you leverage your spending.
In my first year of selling on Amazon, I personally utilised this card. Once I became confident in my product sourcing strategies, the extended payment period proved invaluable in managing cash flow, allowing me to invest more effectively in growing my business.
In summary, the American Express® Business Gold Card is a robust financial tool for Amazon sellers, offering extended payment terms, a rewarding points programme, and comprehensive purchase protections to support and enhance your business operations.
You can sign up here.
Capital on Tap Business Credit Card
The Capital on Tap Business Credit Card is an excellent choice for Amazon sellers aiming to optimise their business expenses. It offers uncapped 1% cashback on all card spending, allowing you to earn rewards on every purchase without limitations. This feature is particularly beneficial for Amazon sellers who frequently invest in inventory, and other operational costs.
Additionally, the card provides flexible redemption options. You can redeem your accumulated points against your balance, convert them into cash, or use them to purchase gift cards. This versatility enables you to utilise your rewards in a manner that best suits your business needs.
Having personally used the Capital on Tap Business Credit Card for approximately eight months, I have found it to be a valuable asset to my Amazon business. The uncapped cashback and flexible redemption options have contributed to improved cash flow and overall financial efficiency.
One of the standout features of the Capital on Tap Business Credit Card is the swift and straightforward payment process. In my experience, after making a payment, the balance updates within 1 to 2 minutes, allowing immediate access to your available credit. This rapid turnaround is particularly beneficial for Amazon sellers who need to maintain a steady cash flow to manage inventory. In contrast, other providers like American Express may take a day or two to process payments, which can temporarily restrict your purchasing power and potentially disrupt business operations.
You can sign up here.
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