Microsoft/Bing Asks Merchants to Lower Cashback Rates

August 21, 2009 · 0 comments

In a very interesting article on, it was revealed that Microsoft/Bing themselves were to blame for the lower Bing Cashback rates on several of their double-cashback merchants, including Eastbay and Foot Locker.
As I reported earlier this week, Ashford increased its cashback rate to 50%. The Internet Retailer article says that as a result, Ashford had a record sales day on Tuesday: 2.5 times more sales than its previous best-sales-day this year, and with an average order size almost twice its previous record.
A Microsoft spokesman said that consumer response to the promotion has been tremendous and that they were going to run out of funds for the promotion and have to end it early unless they were able to get Ashford and several other unnamed merchants to drop their cashback rate (since Microsoft/Bing is picking up the tab on the doubling of the rate).
This explains why Eastbay and Foot Locker’s rates dropped today from 50% cashback to 20%.’s manager, Shmuel Tennenhaus, told that they would comply with Microsoft’s request to reduce cashback. While Ashford and its sister company, The Watchery, are both still at 50% cashback, their websites warn that this rate will end on Sunday.
I guess even Microsoft doesn’t have bottomless pockets. Still a lot of fantastic deals to be had after Bing Cashback. With Microsoft hinting that they’re blowing through their money for this promotion a lot faster than they had expected, you may not want to put off making a purchase until next week — we may see more rate drops or an end to the increased cashback altogether before the scheduled end date of 8/31.

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