With the price of gas and food skyrocketing, we're all looking for ways to save money. So when we see an online shopping promotion that looks like a bargain, we're tempted to buy. Here are 5 online shopping offers to avoid because, although you think you're saving money, you actually spend more money.
1. Buy Two, Get One Free
The Hook - FreebieWho wouldn't want a free item? Merchants know people would like to get something for nothing.
How It Works
You shop online for one item, see that you can get a deal if you buy another one of the same item, so you up your order.
Example
You planned on purchasing one black sweater for $29.95, so you buy a second one and get another one free. You end up with a black sweater, a white sweater, and a blue sweater because, after all, you can always use sweaters.
The Damages
Only $29.95 this time.
2. Buy Two, Get a Lower Price on Both
The Hook - DiscountDiscounts are almost as attractive to shoppers as freebies. Merchants know people think they're smart shoppers when they don't pay full retail price.
How It Works
If you purchase two of the same item, both will cost less per item.
Example
You see a jacket you like for $49.99 in a in a catalog. You go online to make your purchase, see the promotion, which offers the jacket for $39.99 if you buy two, so you decide to take advantage of it. Now one jacket becomes two jackets, and instead of spending $49.99, you just spent $79.98.
The Damages
$30.00
3. Buy Now, Pay Later
The Hook - No Out-of-Pocket CostWhy not put off the charges? You can buy today and pay months from now.
How It Works
Typically, with this type of offer, credit card billing is deferred to a later time. That way, shoppers don't have to think about how much they're spending because they can buy even if their bank accounts are empty and their credit cards are all maxed out.
Example
You budget $400 for holiday gifts, but knowing your credit card won't be billed for months, you decide to make the holiday extra special and go on an online spending spree.
The Damages
$600 - you wanted everyone to have a nice holiday, didn't you?
4. Spend $$$, Receive Free Shipping
The Hook - FreebieShipping costs are rising and can amount to a significant hit that shoppers don't pay when shopping locally. So an offer of free shipping sounds good.
How It Works
If you apend a certain amount - carefully calculated by the merchant to be more than an average customer spends on an average online order - then you receive free shipping.
Example
You go online to buy a windbreaker priced at $49.95 and see an offer for free shipping if you spend $100. You decide to buy a dress so that you can spend $100 and get the free shipping. You can't find a dress you like for less than $65, so you also order a $65 dress.
The Damages
Getting free shipping just cost you $65.
5. Buy Low, Pay Too Much for Shipping
The Hook - Low PriceShoppers are always hunting for bargains, and a low price is sure generate customer interest.
How It Works
The seller offers an item at a bargain price, but makes the sale profitable by overcharging for shipping/handling.
Example
You see a sterling silver ring on an online auction for only $2. You don't notice the outrageous shipping charges of $19.95 for this lightweight item.
The Damages
The difference between what a reasonable seller would have charged, perhaps $2 - $5, and what your seller charged, so $14.95 - $17.95.
