Are you looking for an easy, proven way to earn hundreds of dollars in cashback every year—without clipping coupons or changing your shopping habits? If so, you need to know about Rakuten. In this in-depth guide, I’ll show you exactly how to use Rakuten to earn $300 or more annually in automatic cashback. We’ll cover strategies to maximize your earnings, ways to stack rewards, real examples, and tips for turning cashback into extra passive income.
Key Takeaways
Rakuten lets you earn cashback at 3,500+ stores—online and in-store—just by shopping as usual.
You can boost your annual cashback by focusing on high-payout categories, stacking offers, and using referral bonuses.
Rakuten cashback payouts are automatic and paid quarterly by check or PayPal.
Strategic use of Rakuten with your favorite credit cards and shopping apps can generate $300 or more a year—often passively.
Cashback can be reinvested to grow your wealth even faster with platforms like Acorns and M1 Finance.
What Is Rakuten? A Quick Overview
How Rakuten Works
Rakuten (formerly known as Ebates) is one of the most trusted cashback shopping platforms. It partners with over 3,500 popular stores like Walmart, Target, Amazon, Best Buy, Macy’s, and more. When you shop through Rakuten, you earn a percentage of each purchase back—typically 1% to 10%, with some deals offering 15% or more during promos.
How Is Cashback Paid?
Rakuten lets you accumulate cashback throughout each quarter. Every quarter, you’ll receive your payout automatically—either by PayPal or as a physical check (“Big Fat Check”). There’s no minimum purchase per store, but you do need at least $5.01 in earned cashback to trigger a payout.
How Much Can You Really Earn with Rakuten Each Year?
Typical Cashback Rates & Categories
The average Rakuten user earns between $50–$100/year, but with the right strategies, $300+ is well within reach. Here’s how:
Groceries & Essentials: 1–6% cashback at Walmart, Target, Kroger, Safeway, and Instacart.
Clothing & Department Stores: 2–10% at Macy's, Kohl's, Nike, Gap, Old Navy, etc.
Travel: 3–10% back at Expedia, Hotels.com, Booking.com, and more.
Electronics & Tech: 1–6% at Best Buy, HP, Lenovo, Dell.
Home Goods & Furniture: 2–8% at Bed Bath & Beyond, Wayfair, Lowe’s, and Overstock.
Sample Calculation: Hitting $300/Year
Monthly Online Purchases: Average $250/month across Rakuten partner stores = $3,000/year
Average Cashback Rate: 5%
Annual Cashback: $3,000 x 5% = $150
Holiday Shopping/ Large Purchases: $1,000/year at 10% rate during special promos = $100
Rakuten Referral Bonuses: Refer 1 new user per month at $30/referral = $360
Total: $150 (regular) + $100 (bonuses) + $360 (referral bonuses) = $610/year. Even if you cut this in half, $300/year is very achievable!
Getting Started: Setting Up Rakuten for Maximum Passive Cashback
Step 1: Create Your Free Rakuten Account
Sign up for free at Rakuten.com. Make sure to register with a valid email and set your payout preference to PayPal or check. New users usually get a welcome bonus ($10–$30) after their first qualified purchase.
Step 2: Install the Browser Extension & Mobile App
Rakuten Browser Extension: This add-on for Chrome, Firefox, or Edge alerts you when you land on a cashback store and lets you activate cashback in one click—it’s essential for snagging every deal.
Rakuten Mobile App: Shop on-the-go at 3,500+ stores, get exclusive app-only offers, and earn additional mobile bonuses. Enable notifications for extra reminders.
Step 3: Link Your Cards for In-Store Cashback
You can earn cashback with Rakuten even when you shop in-store. Just add your debit or credit cards to your account (secure, bank-level encryption), activate offers before you shop, and pay with your linked card. In-store rates are often 1–5% at major chains.
Best Strategies to Earn $300+/Year with Rakuten
Focus on High-Value Purchases and Big Cashback Events
Stack Holiday and Major Sale Events: Use Rakuten on Black Friday, Prime Day, back-to-school, and Cyber Monday—20%+ cashback rates are common during these windows.
Use for All Essential, Recurring Purchases: Groceries, home supplies, beauty, and health products all count if you buy through Rakuten partners like Walmart or Walgreens.
Travel Bookings: Book flights, hotels, and rental cars through Rakuten partners for one of the fastest ways to rack up cashback.
Take Full Advantage of Referral Bonuses
Rakuten’s referral program is one of the easiest ways to reach $300/year. Typically, you can get $25–$40 per successful referral (the referred friend must make a qualifying purchase). Even just one referral per month means an extra $300–$500 a year in bonuses alone.
Stack Cashback with Rewards Credit Cards
Double-dip your rewards by pairing Rakuten with a cashback or travel rewards credit card. For example, use a 2% cashback card plus 5% Rakuten cashback = 7% total. Just pay your bill in full to avoid interest charges.
Advanced Tips: Stacking Deals and Maximizing Passive Earnings
Stack Coupons, Cashback, and Promotions
Rakuten will automatically apply eligible coupons at checkout for many stores.
Always activate extra cashback emails and flash deals from Rakuten—a few clicks can mean double or triple cashback.
Don’t forget to use manufacturer rebates, store rewards, or other apps to further stack savings.
Automate Shopping for Recurring Needs
For essentials you buy every month (toiletries, cleaning supplies, pet food), set up recurring Rakuten orders with partners like Walmart or Target for easy, automated cashback. Pair with price-tracking tools for even more savings.
Combine Rakuten with Other Passive Income Apps
Grow your earnings by putting cashback into savings or investments. For instance:
Acorns – Automatically invest your spare change and cashback rewards.
M1 Finance – Put large cashback payouts into a diversified stock portfolio with no management fees.
Swagbucks – Pair with Rakuten for even more “double dipping” on rewards for online shopping, surveys, and more.
In-Depth Example: A Year of Cashback with Rakuten
Jane’s Household Savings Story
Let’s follow Jane, a typical US consumer, to see how quickly cashback adds up:
Online Shopping: Jane spends $150/mo on Walmart & Target, $50/mo on clothes, $30/mo on beauty: $230/month x 12 = $2,760/year. Average cashback: 4% = $110/year.
Seasonal Splurges: Black Friday TV ($500, 10%back) + holiday gifts ($300 at 8%): $50 + $24 = $74/year.
Travel: Annual vacation for $1,000 at 8% = $80/year.
Referral Bonuses: Refers 4 friends over the year = $30 x 4 = $120/year.
Total annual automatic cashback: $110 + $74 + $80 + $120 = $384. Most of this required zero extra effort.
Common Pitfalls and How to Avoid Missing Cashback
Don’t Forget to Activate: Always click through Rakuten to the store OR use the browser extension to activate. Otherwise, no cashback gets tracked!
Don’t Use Store Apps: Only shop through the Rakuten app (not store apps) or on your desktop browser—purchases started in other apps may not track.
Browser Ad Blockers: Turn off ad blockers for Rakuten. These sometimes block the tracking needed for cashback.
Double-Check Exclusions: Some categories (e.g., gift cards, store pickup) are excluded—always read the store’s terms for any cash back limitations.
How to Grow Your Cashback: From Extra Savings to Passive Income
Let Your Cashback Pay You Twice
Instead of spending your Rakuten earnings, compound your gains! Here are practical ways to turn cashback into growing wealth:
Invest in Stocks or ETFs: Use your quarterly payout on M1 Finance or Acorns to buy fractional shares. Even $25 invested each quarter can grow over time.
Start a Side Hustle: Use cashback to fund your first gig on Fiverr or create a digital product on Teachable.
Stack More Cashback: Join other rewards platforms like Swagbucks or experiment with survey sites like Survey Junkie to multiply your passive income streams.
Keep Track of All Your Rewards
Monitor your overall cashback and investments with a free financial dashboard like Personal Capital. It makes it simple to visualize how small habits turn into big results over time.
Rakuten vs. Other Popular Cashback and Reward Sites
How Does Rakuten Compare?
There are many cashback platforms, but Rakuten stands out for its huge list of stores, generous referrals, and quarterly automatic payments. Here’s how it stacks up against competitors:
Rakuten: 3,500+ stores, up to 40% promos, high-value referrals, paid quarterly.
Swagbucks: Earn points (“SBs”) for shopping, surveys, and online activities. Flexibility but slightly lower average cashback rates; paid via gift cards or PayPal.
Survey Junkie: Strictly for surveys and product reviews, paid in cash or gift cards.
Others: Some credit cards offer higher rates for specific categories but require applying and maintaining a good credit score. Rakuten can be layered with these for maximum rewards.
Key Benefits: Why You Should Make Rakuten a Part of Every Purchase
Set-and-Forget Ease: Activate once, shop as usual, and you’ll get paid automatically every quarter.
No Fees or Catches: Rakuten is totally free to use. Merchants pay Rakuten a commission, which gets shared with you as cash back.
No Minimum Purchase per Store: Your only requirement is a minimum overall payout balance of $5.01.
Bonuses Stack Fast: Between new member bonuses, referrals, and seasonal deals, building up to $300/year isn’t just possible—it’s common for savvy users.
Final Thoughts
If you shop online (or in store) even a few times a month, you could be leaving serious money on the table by not using Rakuten. Start today and automate your cashback for everything from groceries to vacations—and make your shopping habit pay you back! Pair your earnings with investing tools like Acorns or M1 Finance if you want your cash to work even harder.
Ready to start earning automatic cashback every time you shop? Sign up for Rakuten now and unlock your first bonus. With just a few tweaks to your routine, you could be pocketing $300 or more in passive rewards—year after year.
