Online Shopping: Resisting the Urge
Of the many challenges Canadians are experiencing as a result of COVID-19, it seems that just about all of us are facing regular temptation to shop online. E-commerce is becoming harder and harder to avoid, as a growing number of retailers are getting online for the first time and countless more are holding enticing sales on a regular basis; regardless of your interests or demographic, there’s something for everybody on the Internet. While we understand that many people are dealing with more serious issues these days, it's important to acknowledge that online shopping is becoming a significant obstacle for many when it comes to staying on track financially.
Of course, COVID has put many Canadians in a position where they’re relying on online retailers to acquire the goods and services they need. However, there's a big difference between purchasing what you need online and impulsively spending on what you want in that moment. At the very least, impulsive shopping will set you back in terms of reaching your saving goals. However, if left unchecked, it could rapidly develop into a more serious problem that affects your financial health before you even realize it. Online shopping (or unfortunately, COVID-19) isn’t going anywhere anytime soon, so the best strategy to employ is to consider your online shopping habits more carefully and make changes where you need to. Here are a few tips to help you shape up:
Avoid looking if possible
This is an extremely obvious piece of advice, but is arguably the most effective if you can master it. Try your best to not check your favourite retailers’ websites on a regular basis. If you never see that new top or new gadget, you won’t experience any lingering temptation to purchase it – out of sight, out of mind!
Visualize your purchase
If you can’t resist checking out your favourite sites, or you’ve received one too many appealing emails from your favourite shop, do your best to consider how the items you want will fit into your life in the long-term. Is your purchase a seasonal item? Is it an obvious fad or trend? Really try to visualize the items you want to purchase in your life 4, 5, 6 months down the road. Are you still using them, or are they gathering dust somewhere?
Abandon your shopping cart
You’ve visualized your purchase and you can see yourself using it for a long time. Add the item/s to your shopping cart and enter in your personal information, but before you officially check out, close your window and think about the purchase for a day or two. Consider the total cost of your purchase (items + taxes + shipping) instead of just the cost of the item/s. Is there something else that money could be spent on?
Also, many online retailers are trying to reduce their number of abandoned shopping carts (of course, they want you to complete that purchase!). A growing number of e-commerce businesses will email you a coupon code for 10-15% off your purchase roughly 24 hours after you abandon your cart (you would have provided your email when you went to check out, so they’ll know where to reach you). So, if you do decide you can’t live without those items, you may end up saving on them if you have the patience to wait!
Consider the potential for extra costs
These days, more and more retailers are offering free returns as a perk for their customers. However, if the retailer you’re shopping with does not, stop to consider the potential extra costs you’ll incur post-purchase if you don’t end up liking your items after all. Depending on what you’re returning and if you’re buying a mailer, returning an item is probably going to cost you at least $10-$15 in postage fees, if not more.
Be sure to subtract that cost from the value of the item you’ve purchased. You won’t truly be getting a full refund on your item if you’re forfeiting those extra dollars to fund your return.
Resist the tactic of urgency
This one is admittedly a tough habit to learn, but do your best to resist the sense of urgency you’ll experience during sales. Stop to think about all the times you may have made a purchase because you felt you had to “act fast”, then didn’t end up loving what you received in the end. A 24-hour sale can cause people to jump to make a purchase without much thought – “if I don’t act now, I’ll miss this deal!”. The same occurs when retailers post that an item is low in stock or is limited edition – they employ these tactics so often because they work!
The best piece of advice is to ask yourself, “so what?” as in, “so what if I don’t get this item?”. Sure, sometimes it sucks to miss out on getting something you really wanted, but rarely do these feelings have a long-lasting impact on your life the same way missing a bill or racking up an NSF bank fee can.
Use the Cost per Use formula
Despite all the above advice, we understand that everybody needs a treat sometimes. It’s unrealistic to assume that you can be completely on point with your budgeting goals at all times, and it can actually help you stay on track to reward yourself occasionally for good behaviour. So, with that in mind, learn to use the Cost per Use formula before making a purchase. This rule is applicable for all kinds of purchases, whether online or in a traditional shop, and is an effective tool regardless of whether you truly need the item in question or just want it.
Consider both the cost of the item (including the shipping if applicable) and the number of times you realistically think you’ll use it. Then, divide the cost of the item by the number of uses you think you’ll get out of it to obtain your Cost per Use. Aim to find the lowest Cost per Use on all the items you purchase. For example,
- a $200 shirt worn 350 times has a CpU of $0.57 ($200/350 uses)
- a $25 dress worn only twice has a CpU of $12.50 ($25/2 uses)
Sidney Caroll once said, “A bargain ain’t a bargain unless it’s something you need”. Even though the dress was much less expensive at face value, the shirt has a much lower Cost per Use, meaning it was the savvier purchase and probably worth the splurge!
We hope these tips can help you change your online shopping habits for the better, even if only a little, and help you keep more of your hard-earned cash.
To increase your saving potential, download QUBER and start a more mindful relationship with your money today!