What Is a Rebate? (2024)

FAQs

What is a rebate in simple terms? ›

A rebate is a partial refund of the cost of an item. It acts as an incentive to help sell the product. If your new cell phone came with a rebate, you'll get a check in the mail for a certain amount of the cost.

A rebate is a financial incentive that manufacturers or service providers offer purchasers, typically used as a marketing strategy to boost sales and customer loyalty. Unlike immediate discounts at the point of sale, rebates are refunded after the purchase has been made.

Supplier Rebate Examples

For example, the supplier could offer a rebate of 5% on the total annual purchases if a buyer agrees to purchase at least $1 million worth of product in a year. If the customer buys $1.2 million worth during the year, they are entitled to a rebate of 5% of $1.2 million, or $60,000.

Rebate. A partial discount or refund given on a purchased item; may be instant, occurring at the time of. purchase, or mail in, requiring the purchaser to pay full price for the item and receive money back in the mail.

Rebates are a payment that reduces the cost of a product or service at a later date. They're great for B2C companies that want to increase sales of a product without discounting it. To get the payment that makes the thing they bought cheaper, the customer has to do something.

verb (used with object)

to deduct (a certain amount), as from a total. to return (part of an original payment): He rebated five dollars to me. to provide a rebate for (merchandise) after purchase: The manufacturer is rebating this air conditioner.

Final answer: A rebate is a partial refund given to a customer after purchasing a product or service.

Rebates are a retrospective payment from a supplier to a customer that ultimately reduces the cost of a product at a later date. Discounts are immediate, rebates are delayed. But like discounts, rebates come in a handful of varieties, such as volume rebates, product mixes and stocking incentives.

Cons of Consumer Rebates

Delayed Savings: Unlike instant rebates, consumer rebates require customers to wait for the rebate to be processed and received. Lower Impulse Purchases: Consumer rebates may not be as effective for impulse purchases, as the post-purchase redemption process may deter quick decisions.

A rebate option is an offer for a cash return on the purchase of a consumer good or service. Rebates can come in many different forms. Flat-rate rebates are automatically subtracted from the purchase price. Conditional rebates are only valid under certain conditions, such as "buy one, get one free."

What is the description of a rebate? ›

A rebate is a credit paid to a buyer of a portion of the amount paid for a product or service. In a short sale, a rebate is a fee that the borrower of stock pays to the investor who loaned the stock.

Refund means you get your full money back, purchasing price of a product. Rebate means you get some discount on whatever you are purchasing. Sometimes rebate word is also used while talking about income tax. It means how much your savings will be exempted from being in taxable income.

A rebate is an upfront discount that gives you cash back after you make a purchase, and typically more quickly than a tax credit.

Mail-in rebates sound simple: To submit one, you purchase a qualifying product, fill out its rebate form, and mail the form – and its requested proof of purchase – back to the product manufacturer. If accepted, you should receive a refund in roughly two to four months. This kind of incentive has become quite popular.

In marketing, a rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively. It is a type of sales promotion that marketers use primarily as incentives or supplements to product sales.

rebate (noun as in refund given to purchaser) Strongest matches. abatement allowance bonus deduction discount kickback reduction reimbursem*nt repayment.