The advantages of online shopping have made us all digital shopaholics—from our Amazon-obsessed grandpa to our trendy Gen Alpha siblings. The ease of browsing thousands of products, quickly comparing prices, and having your purchases delivered right to your doorstep has revolutionized how we shop. But that revolution has a dark side: This convenience can sometimes lead to financial stress.
It's important to consider both the advantages and disadvantages of e-shopping—especially when it comes to your budget. In this article, we'll explore the cons and pros of online shopping and share practical tips on how to shop smart, not hard.
More money to (wisely) shop online? Yes, please: Check out open jobs on The Muse for your next big move »
Advantages of internet shopping: Saving and greater selection
Online shopping offers unmatched convenience. You can't beat the freedom of being able to buy anything, at any time or day, from the comfort of your home. But there are even more perks to enjoy.
Time saving
One of the biggest benefits of internet shopping is that it can save you a significant amount of time. No more driving from store to store or waiting in long lines—everything you need is just a few clicks away. This can also save you money, whether it's on transportation or because you're using that extra time for something more profitable (like building your own dream business).
Better deals
Online retailers are often able to provide better deals than physical establishments. When you can easily compare prices, it's much easier to find the best bargains and take advantage of online discounts to save your money. Price comparison websites and tools make it easy to find the best prices on the items you want. This transparency helps you make informed purchasing decisions.
Greater selection
From niche items to global brands, one of the major perks of online shopping is being presented with a world of possibilities. The internet does a great job of englobing different styles, budgets, sizes, and tastes—offering a range you wouldn't find in your local mall.
The disadvantages of online shopping: Risks and challenges
The convenience and variety come with a few cons of online shopping. Being aware of these drawbacks can help you make more informed decisions.
Safety risks
One of the biggest cons of online shopping is the risk of fraud, scams, and data leaks. It's crucial to shop on reputable websites and understand that sharing personal and financial information online comes with privacy risks. Data breaches and identity theft are potential threats that e-shoppers need to be aware of. (Keep reading for our best tips for smart, safe shopping.)
Shipping and service fees
It's extra satisfying when an online retailer offers free shipping, but that's not the standard. More often than not, you'll encounter various shipping and service fees that can quickly add up. These fees can include not just the cost of shipping, but also return fees, restocking fees, and handling charges.
For instance, when buying electronics or clothing online, these extra costs can turn what seemed like a great deal into a more expensive purchase. Imagine finding the perfect pair of shoes at a discount, only to discover that after adding all the additional fees, the total price far exceeds your budget.
Addictive nature
Having so much purchasing power at the tip of your fingers can be a trap. All this ease and convenience can lead to overspending and impulse purchases. Not being able to see, touch, or try on products before buying is also a key disadvantage of online shopping that indulges this behavior, and can lead to dissatisfaction. It's important to stay mindful of your budget and your intentions.
What is the best way to do online shopping? 8 tips for smart and safe purchases
While online shopping has drawbacks, you can maximize the benefits and minimize the risks with a few savvy strategies. Here are some tips to help you save money and shop smarter online:
Shop safely and securely
1. Ensure the website is legit
There are some ways to verify that a website is legitimate: Look for “https” in the URL and check for contact information and customer reviews. Secure websites protect your data from potential threats.
2. Use secure payment methods
Opt for secure payment methods like credit cards or payment services like PayPal. Consider using digital wallets like Apple Pay, which provide an extra layer of encryption and make it harder for your payment information to be compromised. These options offer additional protection against fraud and unauthorized transactions. (Check out our guide to the best credit cards for young adults).
3. Read reviews and ratings
Search for other customer experiences with the e-shop. Look for feedback about shipping times, product quality, and customer service. This can help you avoid unreliable sellers. Additionally, be wary of fake reviews—yes, they're out there! Authentic reviews usually include detailed information about the product and experience, have a mix of positive and negative comments, and come from verified buyers. Be cautious if you see overly positive, generic, or repetitive reviews.
Score the best deals
4. Use price comparison tools
Websites like Honey, CamelCamelCamel, and PriceGrabber can help you compare and track prices, ensuring you get the best deals.
5. Take advantage of cashback and reward programs
Using credit cards with cashback rewards can further enhance your savings. Websites like Rakuten and Swagbucks offer cashback and rewards for online shoppers.
6. Look for coupon codes
Before purchasing, search for coupon codes that can be applied at checkout. You can find coupons for major retailers on websites like RetailMeNot and Coupons.com.
Maintain a healthy shopping mindset
7. Monitor your spending habits
Keep track of your spending habits to avoid overspending. Set a budget for your online shopping and stick to it.
8. Think before hitting the “buy” button
Avoid impulse purchases by taking the time to consider whether you truly need the item. A good rule of thumb is to wait at least 24 hours before finalizing your purchase. This mindful approach can help you avoid buyer's remorse and unnecessary expenses.
For example, if you want to buy a new piece of clothing, try to see if it matches your existing wardrobe well. Spend a few days thinking about how this new item would fit into your lifestyle. If, after this period, you still believe it would add value and complement what you already have, then it might be a good addition.