Introduction #
Rakuten is one of the most successful examples of how affiliate and cashback marketing can evolve into a global business ecosystem. Founded in 1997 in Japan by Hiroshi Mikitani, Rakuten started as a small e-commerce marketplace called Rakuten Ichiba. Today, it’s a global powerhouse with businesses spanning cashback, fintech, telecom, and digital advertising, operating in more than 30 countries.
But at its core, Rakuten’s growth engine is built around affiliate partnerships and cashback marketing — a business model that connects shoppers, brands, and advertisers through a mutually rewarding system.
Let’s explore how Rakuten makes money, how its cashback works, and what makes its business model a benchmark for affiliates and platform builders worldwide.
What is Rakuten and How Does It Work? #
Rakuten is a global affiliate network and cashback platform that allows users to earn rewards when they shop online through Rakuten’s partner merchants. The platform works as a bridge between shoppers and retailers — tracking sales, earning commissions from brands, and sharing a part of that commission back to users as cashback.
Beyond cashback, Rakuten operates multiple verticals:
- Rakuten Advertising (affiliate marketing and brand partnerships)
- Rakuten Rewards (cashback and loyalty program)
- Rakuten Card (credit and financial services)
- Rakuten Viber (communications app)
- Rakuten Bank and Securities (fintech division)
This multi-layered structure gives Rakuten a diversified income base, but the cashback affiliate engine remains one of its most recognizable and profitable pillars globally.
Key Business Metrics #
| Metric | Value / Estimate |
| Founded | 1997 |
| Founder | Hiroshi Mikitani |
| Headquarters | Tokyo, Japan |
| Global Reach | Operations in 30+ countries |
| Annual Revenue (2024) | $17–18 billion USD (Rakuten Group consolidated) |
| Registered Rakuten Rewards Members | Over 20 million users in the U.S. alone |
| Partner Merchants | 3,500+ brands globally |
| Cashback Rate Range | 1% – 15% on average per transaction |
| Publicly Listed | Tokyo Stock Exchange (4755.T) |
These numbers illustrate that Rakuten isn’t just a cashback site — it’s a full-fledged ecosystem that monetizes user behavior, brand engagement, and financial transactions.
How Does Rakuten Work? #
From a business standpoint, Rakuten operates as a three-way affiliate network:
1. Partnering with Merchants and Brands #
Rakuten collaborates with thousands of online retailers (Amazon, Walmart, Macy’s, Best Buy, etc.). These brands list offers or deals through Rakuten’s platform to attract more traffic and conversions.
Each partnership is tied to a performance-based agreement — meaning Rakuten earns a commission only when a user completes a purchase.
2. Attracting Shoppers Through Rewards #
Rakuten incentivizes shoppers with cashback rewards. When users click on Rakuten’s affiliate link and buy something, Rakuten earns a commission and shares part of it with the shopper as cashback.
For example:
- A user buys a $100 item from Macy’s via Rakuten.
- Macy’s pays Rakuten a 10% commission ($10).
- Rakuten shares $5 with the shopper and keeps the other $5 as profit.
This simple yet powerful model turns user spending into a recurring revenue cycle.
3. Affiliate Tracking and Payout Automation #
Rakuten uses advanced tracking systems and postback integrations to verify each purchase. Once the transaction is confirmed and the return window expires, cashback becomes “available” in the user’s account, ready for withdrawal.
This tracking architecture allows Rakuten to manage millions of transactions globally with precision and transparency — a key reason for its long-term user trust.
How Does Rakuten Cashback Work? #
Rakuten’s cashback system follows a commission-sharing structure between merchants, Rakuten, and shoppers.
Workflow: #
- Users sign up on Rakuten and browse offers.
- They click through Rakuten’s affiliate links to shop on partner sites.
- Rakuten tracks the transaction through cookies or postback data.
- Once the purchase is verified, Rakuten receives the commission.
- A portion of that commission is credited to the user’s account as cashback.
- Users can withdraw their cashback through PayPal or Rakuten’s payout system once it reaches the minimum threshold.
This model benefits all three stakeholders:
- Users save money.
- Brands get verified conversions.
- Rakuten earns profit from commission margins and advertising.
Rakuten Business Model Explained #
Rakuten’s business model is a hybrid of affiliate marketing, e-commerce, and financial technology.
Its revenue comes from multiple verticals that complement one another, creating a self-sustaining ecosystem.
| Revenue Source | Description | Revenue Type |
| Affiliate Commissions | Rakuten earns commission for every sale completed through its platform and keeps a share after paying cashback to users. | Recurring, performance-based |
| Advertising and Brand Campaigns | Brands pay for premium placements, homepage visibility, or sponsored campaigns within Rakuten’s network. | High-margin, campaign-based |
| Subscription and API Licensing | Rakuten licenses its affiliate and marketing APIs to enterprise brands and publishers. | B2B recurring income |
| Financial Services (Rakuten Card, Bank, Insurance) | Interest, transaction fees, and credit services offered via Rakuten’s fintech arm. | Long-term recurring |
| Data Analytics and AdTech | Monetizing anonymized consumer behavior data for advertisers. | Strategic, premium revenue |
This multi-channel monetization strategy makes Rakuten both scalable and resilient to market fluctuations.
Rakuten Revenue Model Summary #
The Rakuten revenue model is built around synergy between its key divisions:
- Rakuten Advertising generates affiliate revenue.
- Rakuten Rewards builds user loyalty through cashback.
- Rakuten Fintech monetizes transactions and data.
- Rakuten Communications and Media extend audience engagement.
By combining e-commerce, finance, and digital marketing, Rakuten captures value across every stage of the buyer journey — from discovery to payment.
Why This Model Works for Affiliates and Entrepreneurs #
Rakuten’s success proves that affiliate-based cashback platforms can scale globally when paired with automation and diversification.
Here’s what founders can learn from it:
- Focus on integration, not just listings — APIs and partner networks drive scalability.
- Monetize data and analytics — insights are as valuable as commissions.
- Build loyalty through cashback loops — it keeps customers returning.
- Diversify income channels — affiliate + advertising + fintech = stability.
Entrepreneurs can use this model to build their own ecosystem — a cashback or affiliate platform that monetizes through commission margins, campaigns, and strategic brand partnerships.
At EnactSoft, we can help you build a platform like Rakuten — fully equipped with affiliate tracking, cashback management, and partner APIs to help you launch a scalable, revenue-generating ecosystem.
Conclusion
Rakuten’s business model thrives on a simple principle — share value to create value. By rewarding shoppers, empowering merchants, and automating affiliate operations, it built a global ecosystem that benefits every stakeholder.
If you’re building a cashback or affiliate marketing platform, Rakuten’s structure offers a perfect model for scalability and sustainability — and with the right technology, you can build your own version designed for the next generation of affiliate growth.
FAQs #
What is the main business of Rakuten? #
Rakuten’s main business is affiliate marketing and digital commerce, powered by its cashback platform (Rakuten Rewards), affiliate network (Rakuten Advertising), and financial services (Rakuten Card, Bank, and Insurance). Together, they create a diversified digital economy ecosystem.
How exactly does Rakuten work? #
Rakuten connects shoppers with partner merchants through affiliate links. When a purchase is made, Rakuten earns a commission and shares part of it with the shopper as cashback. The rest is retained as profit.
Why do companies pay Rakuten? #
Brands pay Rakuten for performance-based conversions, premium advertising placements, and access to its global affiliate network. It’s a cost-effective marketing channel where companies only pay for verified sales or leads.
What was Rakuten called before? #
Before 2010, Rakuten’s U.S. cashback platform was known as Ebates, which Rakuten acquired in 2014 for $1 billion. Ebates was later rebranded as Rakuten Rewards in 2019.
Is Rakuten profitable? #
Yes. Rakuten is profitable in several verticals, particularly in advertising, fintech, and affiliate marketing. While its telecom division has reported mixed results, the group overall continues to generate over $17 billion in annual revenue with growing global operations.
