Here’s how it typically works:

1. The customer purchases a product at full price.
2. The manufacturer or retailer offers a rebate on that product.
3. The customer fills out a form and sends a proof of purchase.

If they’ve met all the requirements, they receive some money back, often via a check or an electronic transfer.

Companies use rebates to attract customers without permanently lowering their prices. They can make products seem more affordable, although rebates also require extra effort from the buyer. Some people forget to claim their rebates or miss the deadline.

Common rebate amounts are $10, $20, or a percentage of the purchase price. You might offer them on electronics, appliances, or smaller items like groceries or personal care products.