Over 80% of Americans shop for all of their purchases online. About 15% of Americans shop online for purchases every single week. In 2015, online shoppers spent over $350 billion in online purchases. That equates to about 10% of all retail commerce. Shoppers who use Apple computers spend an average of $230 per online order, while PC users spend an average of $190. There’s a lot of money shopping online, but there are also ways you can save.
How to Save Money When You Shop Online
What online shoppers don’t know is that shopping habits are monitored and analyzed to the benefit of retailers. You might be paying inflated or manipulated prices to the benefit of the very retailers you are patronizing.
Dynamic Pricing
Online businesses weaponize data, your search data, to maximize their profit potential. Did you know that Amazon changes the prices for its products an average of 2.5 million times every day? The average cost of every product on Amazon changes every 10 minutes. This practice is not only to beat competitors but it is also to persuade you to buy products based on manipulated instead of fixed-price profit margins.
It’s called dynamic pricing. Your online shopping history and patterns are analyzed, via algorithms, to show you products you are more inclined to buy. You might see online ads for products that seem cheap, based on websites you visit often. Amazon sometimes raises prices on less-popular products to give you the impression you are getting a deal.
Clear out your browser history often. Log out of your social media accounts. Cookies on your computer track your online searches. This information is then sent back to retailers. To get fixed-price and unbiased price margins when you shop online, shop in Incognito mode. Or, browse anonymously with the Tor browser.
Are Retailers Following You Online?
You should really get in the habit of deleting your browser history. Have you ever noticed that after visiting a retail site, ads for the product you just viewed keep popping up? It called “behavioral retargeting,” or retargeting. Such ads will keep popping up and sometimes offer discounts to get you to buy. You can’t be sure of the integrity of the discount from one source since it is based on tracking your online activity. Clear your browser history and always comparison shop.
Leave Items In Your Checkout Cart
After you have filled your online checkout cart with purchases, save it, and checkout. Many notable retailers want to close the deal and will try to entice you. Retailers such as Bed, Bath, and Beyond, JCPenney, Office Max, and Macy’s often send e-coupons or discounts to consumers with merchandise in online carts.
Sign Up for Retailer Newsletters With Multiple Emails
Many online retailers send exclusive coupons and discount codes to preferred customers. Usually, this is through sign-up newsletters. Sign up for such newsletters, or you could be missing out on secret sales and discounts. Some retailers reward frequent customers with deep discounts. Sign up for such newsletters with multiple email accounts to maximize savings.
Bottom Line
Don’t just take for granted that the prices you see online are genuine. Always clear your browsers and comparison shop. Otherwise, you could be spending more money than need when you shop online.
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Allen Francis was an academic advisor, librarian, and college adjunct for many years with no money, no financial literacy, and no responsibility when he had money. To him, the phrase “personal finance,” contains the power that anyone has to grow their own wealth. Allen is an advocate of best personal financial practices including focusing on your needs instead of your wants, asking for help when you need it, saving and investing in your own small business.
