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Rakuten Rewards was founded as Ebates in 1998 in Menlo Park, California, by two former deputy district attorneys, Alessandro Isolani and Paul Wasserman. [5] Funded by the venture capital firm Foundation Capital , [ 6 ] Ebates.com was launched on 3 May 1999, offering up to 25% cash back from about 40 online retailers.
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Internet vendors benefit from a simplified sales model as compared to traditional brick-and-mortar stores. By storing goods remotely at a warehouse location and shipping goods directly to a consumer, significant transportation needs are eliminated both on the part of the vendor (shipping goods to stores) and by the consumer (traveling to stores).
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