The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.
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Sometimes it’s a rebate from the manufacturer. They require the retailer or customer to submit a proof of purchase to get the rebate.
So the retailer either gets reimbursed or doesn’t pay the rebate. It’s just a different type of discount.
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