On Tue, 7 Aug 2018 20:29:51 +0100, Serena Blanchflower
Post by Serena Blanchflower
Yes, of course there's a cost but it's being born by the companies, such
as Amazon or Tesco who clearly think that signing up with these
intermediaries is likely to bring them enough extra business that they
are happy to pay it.
Places like Tesco and Waitrose, who give you little counters to drop
in the appropriate boxes to support the charity of your choice from
this month's selection, have a budget for charitable donations. The
amout they give is mostly pre-determined, it's just the proportion
that goes to each charity that we get to influence.
In a thread elsewhere about switching energy suppliers and the cost of
the incentives being borne by those who don't switch - these come out
of the marketing budget. If Vicky recommends me to join a company she
is a customer of, it saves them having to advertise somewhere I might
see it. Paying out £100 for a definite customer sign up is probably a
far better conversion rate than paying out hundreds of thousands of
pounds for a marketing campaign that may bring in a few hundred new
Amazon probably work on a similar principle with Smile. They aren't
working off a commission based intermediary, as most people already
shop with Amazon and if a new customer does sign up, it's rarely
through a third party. Amazon don't appear on cashback sites. So, if
they donate a small proportion of each sale to charity, they know that
their total donations will be a very tiny part  of their annual
turnover, probably in line with most other large companies' donations.
As I spend several hundred pounds a year with Amazon, I'm happy to
have a small proportion of that charitable budget directed to a
charity I support, which they would otherwise not have had.
 The proportion of Amazon customers who use Smile is very small and
not all sales are eligible for Smile donations.