When you shop online, do you find it hard to keep track of your spending and orders? If so, you’re not alone. In a recent survey by Slickdeals, nearly 75% of respondents reported experiencing buyer’s remorse after shopping online. Sixty-three percent of respondents forgot about a purchase until the package arrived, demonstrating just how mindless online shopping can be.
Retailers use lots of tricks to make shopping from the comfort of your home more fun and addicting. Here are five reasons why you may spend more and forget what you’ve ordered when you shop online. Plus, we’ll cover some strategies to help you avoid overspending.
3 Reasons Why Online Shopping May Lead to Overspending
There Are More Distractions and Temptations Online
Shopping online can expose you to even more temptations and distractions than browsing in person. In a store, there are a limited number of products on the shelves. But online, there are nearly endless items to choose from, which you can find with a quick Google or Amazon search.
Retailers also target you with suggested products and display ads based on your search history while you’re shopping. These advertisements are designed to keep you browsing for longer than you intended. They may also cause you to overspend by exposing you to new items you wouldn’t have discovered otherwise.
Installing an ad blocker can help minimize your exposure to targeted advertising. It may also be helpful to make a list of items you need before you start shopping to keep you focused. Hopefully, the list will help you realize when you’re in danger of making an impulse purchase so you can remove the product from your cart.
It’s Easy to Underestimate How Much You’re Buying
A recent study showed that the average shopper spends twice as much on online purchases as they think they do. The virtual nature of online shopping makes it easy to forget how many items you’ve added to your cart.
When you shop in person, you get to add real, physical items to your basket, which helps you plan your purchases. Your cart is always in your line of sight while you’re browsing and fills up as you toss items in, giving you a powerful visual reminder of your spending.
However, online shoppers don’t get the same level of exposure to the items in their cart. You may only be able to see the products you’ve selected when you navigate to your virtual shopping cart. It may be harder to keep a running total of your spending because the items you’re planning to buy are hidden from you while you’re browsing.
Shoppers tend to overspend when they charge purchases to their credit card for the same reason. Swiping a plastic card lessens the financial impact of the transaction and makes the purchase seem less real. That’s why many finance experts recommend that you only pay with cash. Counting out and handing bills to the cashier feels more painful and visceral, which may make you rethink your spending.
Similarly, shopping in person can make your purchases feel more real and prevent overspending. Although heading to the store is less convenient than shopping on Amazon, the extra effort could save you a lot of cash.
Free Shipping Minimums Motivate You to Spend More
Another unique issue online shoppers face is free shipping minimums. Companies will often waive shipping charges if you spend a certain amount, which encourages you to purchase more than you planned. Spending money on shipping may feel like wasting money. But it may be a bigger drain on your finances to order more products than you need just to hit free delivery minimums.
Don’t get me wrong—I hate paying for shipping too! However, there are smarter and cheaper ways to avoid delivery costs than purchasing unnecessary items. Some credit cards offer a ShopRunner membership as a complimentary perk, which entitles you to free 2-day shipping at dozens of online retailers. PayPal members can also get a complimentary ShopRunner subscription thanks to their partnership. Additionally, store credit cards may offer free shipping as a perk. For example, I can get free delivery and 5% cash back on Target purchases as a RedCard member.
Stores usually offer free shipping ahead of major holidays like Christmas or Labor Day. You may also get free shipping offers if you sign up for email newsletters from your favorite stores. However, if these emails tempt you to make unplanned purchases, you may be better off picking up your items in-store to avoid shipping charges.
Do you spend more money when you shop online? How do you avoid online impulse buys? Share your thoughts in the comments!
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.
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