what is rakuten and how does it work

45 minutes ago 1
Nature

Rakuten is a large multinational technology and e-commerce company best known for its online marketplace, but it also operates a range of other services. In simple terms: it helps shoppers save money by offering cash back or rewards when they shop through Rakuten, and it earns revenue by taking a commission from participating stores. What Rakuten is

  • A Japanese-founded technology and internet services group, with a flagship online shopping marketplace (Rakuten Ichiba) that connects buyers with a wide variety of sellers. It also owns or operates other businesses, including content streaming, messaging, and reading services, in multiple countries.
  • The core idea behind Rakuten’s business is to create a marketplace ecosystem where retailers gain more exposure and sales, while consumers receive savings or rewards for shopping through Rakuten’s platform.

How it works for shoppers

  • Sign up for Rakuten, then shop through its site or app at partner stores. Each eligible purchase earns cash back or Rakuten Points, depending on the program and region. You can redeem cash back via PayPal, check, or convert to Rakuten Points for future purchases.
  • The cash back is funded by commissions that Rakuten collects from participating retailers. Rakuten shares a portion of those commissions with shoppers, aligning incentives for stores, Rakuten, and customers.

How it works for retailers

  • Stores pay Rakuten a commission for traffic or sales generated through the Rakuten platform. Rakuten then uses part of that commission to reward customers, while monetizing the rest through the compare/advertising and services it offers.

Key highlights and variations

  • Rakuten’s ecosystem extends beyond cash back to loyalty rewards, membership networks, and content services in various regions. Its business model emphasizes performance-based monetization (commissions) rather than upfront fees from sellers.
  • The platform has grown to host thousands of merchants and hundreds of millions of members globally, making it one of the more prominent cash-back and rewards ecosystems.

If you want, I can tailor this to your region or give a quick step-by-step on using Rakuten for online shopping, including how to redeem rewards and what kinds of stores are typically available.