The tricks to make you spend more online revealed
Online shopping is incredibly convenient, but did you know that many online retailers use sneaky tricks to get you to spend more? These tactics can subtly influence your decisions without you even realising it.
Don’t worry, though. If you’re armed with a little know-how, you can easily outsmart these ploys and keep your savings account happy. Let's dive into some common patterns online retailers can use and how to avoid them.
Sneaky subscription traps
Have you ever signed up for a free trial, only to find yourself stuck in a subscription you didn't want? This tactic, known as a subscription trap, is designed to get you hooked with a freebie and then quietly start charging you. Subscription traps can be difficult to escape from and often involve hidden terms and conditions, so it's important to always read the fine print and set reminders to cancel before the trial ends.
Hidden costs at checkout
You’re almost ready to complete your purchase when - bam!! unexpected fees appear at checkout. This tactic, called hidden costs, can include shipping fees, handling charges, or extra taxes. NSW Fair Trading warns that these sneaky costs can catch you off guard and make you spend more than you intended. To avoid this, review all charges carefully before hitting that 'buy' button and consider shopping around for retailers that offer free shipping or all-inclusive pricing.
Countdown timers and stock scarcity
Ever felt the pressure of a ticking countdown timer or a “Only 2 left in stock!” alert? These urgency tactics are designed to create a sense of panic, pushing you to buy immediately. NSW Fair Trading explains that "Urgency tactics can make consumers feel pressured to make a quick decision without considering all their options." Take a deep breath and give yourself time to think. Most deals will still be there when you’re ready.
Default opt-Ins
When signing up for a service or making a purchase, you might find certain options pre-selected for you, like adding insurance or opting into newsletters. These default opt-ins rely on the fact that many people won’t notice and will leave the options as they are. It’s important to carefully review all default settings to avoid unwanted extras. Always double-check the boxes and make sure you’re only signing up for what you really want.
FOMO
"Limited edition!" "Only 3 people viewing this item!" These social media tactics play on our fear of missing out (FOMO) and can drive us to make hasty purchases. NSW Fair Trading points out that "Social proof can influence consumer behaviour by suggesting that an item is popular or in high demand." Instead of rushing into a purchase, take a moment to ask yourself if you really need the item and if it fits within your budget.
Complex cancellation processes
Ever tried to cancel a subscription only to find it’s harder than cracking a macadamia nut? Complex cancellation processes are designed to discourage you from opting out. Some businesses can make it intentionally difficult to cancel subscriptions or services. To avoid this, look for clear cancellation policies before you sign up and keep records of your subscriptions and how to cancel them.
Hidden information and terms
Some websites bury important information in lengthy terms and conditions, making it easy to miss crucial details. Make it a habit to skim through the fine print and look for summaries or key points to ensure you’re fully informed.
Stay one step ahead
Understanding the patterns online retailers may use is the first step to staying one step ahead. By recognising these tactics, you can make more informed decisions and keep your spending in check. Next time you’re shopping online, keep these tips in mind and outsmart the tricks that are designed to make you spend more.