Rebating: meaning, definitions and examples

financial term

Rebating refers to the practice of offering a partial refund or discount on a previously paid amount, commonly used in sales and marketing. This financial strategy encourages customer loyalty and repeat purchases by providing an incentive for consumers. Rebating can be a legal practice in many industries, although it may be subject to regulations in certain contexts. The effectiveness of rebating often depends on its implementation and the perceived value by the customer.

discount, rebate, refund

Examples of usage

• The company offered a rebating scheme to boost sales.

• Customers appreciated the rebating program during the holidays.

• Rebating is common in the automotive industry.

• Many retailers use rebating to attract new customers.