Comparing Rakuten and Honey: Which Tool is Better for Saving Money While Shopping Online?

In the ever-evolving world of online shopping, savvy consumers are constantly on the lookout for ways to save money. Two popular tools that have gained significant traction are Rakuten and Honey. Both are designed to help users maximize their savings, but they operate differently and cater to varying shopping habits. In this blog post, we’ll break down the features, benefits, and drawbacks of each tool to help you decide which one is best for your shopping needs.

What is Rakuten?

Rakuten is a cash-back website that rewards users for shopping at participating retailers. Users can earn a percentage of their purchase back in the form of cash rewards when they shop through Rakuten's links. The platform also runs promotional offers that can increase your cash-back percentages on specific items or stores.

Key Features:

- Cash Back: Users earn cash back on their purchases, which can be transferred to their bank account or exchanged for gift cards.

- Referral Program: Users can earn additional cash bonuses by referring friends.

- Seasonal Promotions: Rakuten frequently offers increased cash-back percentages during major shopping holidays, like Black Friday or Cyber Monday.

- Wide Range of Retailers: Rakuten partners with thousands of online stores, covering everything from clothing and electronics to groceries.

Pros of Rakuten:

- Straightforward cash-back model that can lead to significant savings over time.

- User-friendly interface and mobile app for easy access.

- Opportunity to stack cash back with other discounts and sales.

Cons of Rakuten:

- Cash-back latency; it may take a few days or weeks for your rewards to be credited.

- Limited to retailers partnered with Rakuten; not all stores are included.

- Users need to remember to start their shopping through Rakuten to earn rewards.

What is Honey?

Honey, on the other hand, is a browser extension and mobile app designed to find and apply coupon codes automatically at checkout. It also includes a cash-back feature called Honey Gold, allowing users to earn points on purchases, which can be redeemed for gift cards.

Key Features:

- Automatic Coupons: Honey scans the web for coupon codes and applies the ones that work at checkout.

- Honey Gold Program: Users can earn points (Honey Gold) for every purchase made at participating retailers, which can be redeemed for gift cards.

- Price Tracking: Honey offers a feature that alerts you when prices drop on items you’ve saved.

- Widely Compatible: As a browser extension, Honey works with a broad range of online retailers.

Pros of Honey:

- Automatically finds and applies coupon codes, saving you time and effort.

- Easy to use with a simple browser extension that works seamlessly.

- The price tracking feature helps you make informed purchasing decisions.

Cons of Honey:

- Honey Gold redemption options are limited compared to cash-back options from Rakuten.

- Users may not always find the best deals, as some coupons may be expired or invalid.

- Some users might prefer direct cash rewards over points.

Key Comparisons

 Feature                 Rakuten                                     Honey 

|-------------------|----------------------------------|--------------------------------|

 Main Focus             Cash back on purchases              Automatic coupon application

 Earnings                 Cash rewards after shopping       Points (Honey Gold) for gift cards

 Referral Bonuses    Available                                       Not available

 Retail Range           Thousands of partnerships           Works with many online retailers |

 Price Tracking        Not available                                  Yes

 Mobile Access       Mobile app available                      Mobile access via app

Conclusion

Choosing between Rakuten and Honey ultimately depends on your shopping preferences and habits. If you prefer a straightforward cash-back model and are loyal to retailers that partner with Rakuten, then it might be the better choice for you. On the other hand, if you want the convenience of automatically finding and applying coupon codes without much hassle, Honey is likely the more suitable tool.

For the savviest shoppers, using both tools in tandem can maximize savings. Start with Rakuten for cash-back bonuses, and then let Honey find additional coupons to stretch your dollars even further.

Regardless of your choice, both Rakuten and Honey provide excellent opportunities for saving money while shopping online. Happy shopping!