Online retail stores are the new normal when it comes to shopping. Ibotta is one of such retail stores. They are fairly new in the game, but has made billions in profit that people ask..how does Ibotta make money in 2022?
There is quite a number of these stores that host other retailers on their websites, making their products more visible to prospective clients. The products they advertise are usually owned by third parties, which makes the question of how they make their money a very salient question.
In this article, we will give you an in-depth and detailed explanation of how Ibotta makes its money, the businesses they are into, and of course the services they render to both consumers and retailers.
Before We Do That, let’s Know More About Ibotta…
According to Wikipedia, Ibotta is an American mobile technology company based out of Denver Colorado. It was founded in 2011 by Bryan leach who is also the current CEO of the company.
They enable users to earn cashback on in-store, mobile app, and online purchases with receipt submission, linked retailer loyalty accounts, payments, and or purchase verification.
All these are done while using their mobile apps either on their ios or Android devices. The app is unfortunately only available in the united states of America.
As of 2016, the company had received over $73 million in funding. In August last year, it announced that it has raised its valuation to a billion dollars.
By this time, the app has been downloaded over 30 million times. With over $500 million in reward money given out to customers.
The company partners with brands and retailers to offer rebates and discounts on consumer packaged goods, retail purchases, and restaurant dining. This is done through a mobile app, similar to traditional coupons or rebates.
The cashback services and rebates are also available for customers interested in buying alcohol(wine, beer, and spirits) that can be purchased at bars, restaurants, and liquor stores, and grocery stores.
For this reason, Ibotta users must be of legal drinking age, even if the consumer has no interest in purchasing beer, wine, and liquor. The same rule applies to consumers who only patronize retailers that do not sell such items.
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How Does Ibotta Make Money in 2022?
Still wondering how they generate billions in revenue, read through…
As an app that plays host to a lot of retail stores, Ibotta makes money mainly by charging a commission. The commission is charged to the stores that are registered with them.
Ibotta is home to thousands of retailers that are looking for avenues to show their products and services to a larger number of people. Ibotta provides the platform for these stores and in turn shares in their profit.
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How exactly does this work you might ask?
Even though Ibotta is a free app, they run on ideas that keep them afloat financially. They are like every other business, whose sole aim of engaging in business is to maximize profit.
For ibotta, they make their money through the following means…
Basically, whenever you do shopping through ibotta, they receive an affiliate commission with no extra cost to you. Then they share a portion of the commission with the actual buyer(you).
They get cashback in form of coupons from the retailer whose products you bought. It is that cashback that they split with you.
With millions of people purchasing items from the thousands of retailers they have on their platform, their profit margins naturally run into millions.
What Are The Services Ibotta Provide and How Does Ibotta Make money from it in 2022?
Ibotta is like a marketing and advertising business. They have a whole platform dedicated to showcasing the products of retailers to the members of the buying Ibotta.
So all the companies you find listed in ibotta with their products, each pay money for their products to be featured in Ibotta.
Their job is to help product owners advertise their products and services. And this forms a part of how ibotta makes money in 2022.
They have a symbiotic relationship, where the retailers gain publicity and visibility; for their products, from the company. And the company gets paid for it.
They generate new customers for their merchants. This earns them a “finders fee”, how much they earn depends on the merchant and the product the merchants sell.
Things I Can Save Money From While Using Ibotta
Ibotta helps you save money even on eggs, milk, soap, shampoo, juices, meat, vegetable, and many other items. this means that you can get rebates on virtually all the products we buy in our day-to-day life.
Succintly put you make money off of all house hold products.
For online shoppers and in-store shoppers, Ibotta works for everyone. you can even get discounts on Hotel and electronics, and lifestyle. Ibotta covers virtually all corners.
How do I Sign Up In Ibotta?
To Register In Ibotta Of Course You need To First Download The App and you can do that here.
Then follow the following steps:
If you have successfully done this, you are ready to start shopping
How To Shop In Ibotta A Step By Step Guide
How do you redeem on Ibotta? You can redeem on Ibotta in one of three ways:
- Manual receipt submission:
- On the navigation bar, select redeem. Go to the retailer you shopped at.
- Take photos of your receipt and select the offer you want to redeem or scan the QR code located on the receipt as required by certain retailers.
- Scan barcodes of the items purchased if prompted.
2. Loyalty Card submission (You can now maximize your Ibotta earnings with Automatic Cash Back!)
- Certain retailers require you to submit your store loyalty card and select your offers prior to shopping.
- If so, you’ll receive credit for redemption within 48 hours.
3. Mobile submission
- Simply open the Ibotta app and select the retailer you wish to purchase from for in-app or app-to-app purchases. For example, if you’re shopping with Amazon, you can open Ibotta, select Amazon and make your purchase with your Amazon app.
Step 2 – Redeem your cash
How do you get the money from Ibotta? That’s easy, read through
When you redeem a rebate, your money will be added to your cashback in the Ibotta app within 24 to 48 hours.
You’ll earn actual cashback, not points. When you’ve reached $20.00, you can redeem your cash back for one of many different retailer gift cards or get actual cash through PayPal or Venmo.
How Long Do I Have To Redeem My Money Ibotta?
Sometimes we forget even the most important things, if you forget to check Ibotta before going shopping, you need not worry as long as you’re not shopping at a retailer that requires you to upload your loyalty card inside the Ibotta app.
If that be the case, then you have 7 days to select an offer and submit your receipt in the Ibotta app. This means that you can send your receipt to Ibotta on any day up to 7 days from the date and time you made your purchase.
For example, if you make a purchase on Sunday at 3 pm, you will have until the following Sunday at 2:59 pm to submit your receipt. Ensure you submit your receipts and select the offers right away as certain offers do expire and you don’t want to miss out on those savings!
Ibotta is a legitimate retail store that offers cash backs to its customers. They have made saving while spending a fun activity. All that you need to make those savings are all around you. With Ibotta spending is just another way to save.