Pricing and rebate strategies for an e-shop with a cashback website

A cashback website (CW) is a type of reward website that pays its members a rebate when they purchase goods via affiliate links. The website receives a commission from an e-shop when a customer makes a purchase by following a link instead of visiting the e-shop directly. With the rapid rise in e-shops, CWs are becoming increasingly popular. However, these CWs’ value to e-shops is still somewhat unclear, in both theory and practice. To clarify...