Online shopping dynamics are different than anticipated
While men and women shopped with about equal frequencies online, recent statistics by KPMG showed that men spent more per transaction (US$220) When compared to females (US$151). Surprisingly enough, Generation X consumers are the most active online shoppers making an average of 19 transactions for each online shopper.
Australians enjoy shopping online and this is proven by the $23.4 billion that we spent in 12 months leading to September 2017.
Shopping online has made it convenient to whipping out our credit cards to purchase what our most desired wants rather than needs. The purchase of physical goods has increased by 10.2% which grossed a total of $17.7 billion last year.
Online shopping is used to quench our thirst for wants rather than needs
Whether you call it ‘a hug through your card’ shopping or a ‘you deserve it’ purchase our need to purchase wants instead of needs show no signs of slowing down. Although using your credit card details to swipe online spells convenience and better deals, it can be a bad thing for the national credit card debt that sits at $33 billion.
It comes as no surprise that the top two categories for online shopping are the fashion and department/variety store items. This accounted for more than half of all online sales. Following hot on the heels of these two giants is the purchasing of media goods which experienced a 22.9% growth rate in 2016.
Use online shopping to your advantage
Like anything in life, you will need to understand the normal usage of it in order to avoid abnormal use (abuse) of it. Having a credit card that has a low interest rate combined with good repayment plans that don’t make it a tight squeeze for your budget at the end of each month can make your shopping experience worthwhile.
Understanding that using a credit card to make important purchases can save you from digging yourself into a pit of debt. You could be thinking that making the purchase online is convenient and cheaper than going to a physical store, but if it is on something that you don’t need it could pile on the interest on your card quickly.
Everything adds up, and making those small purchases online with your card can lead to large repayments on your card at the end of the month. Especially if it’s for unplanned purchases. Utilize your online shopping experience and credit card to work for you instead of the other way around.
The thought of delay gratification might suck for now, but in the long run you could reap the benefits. This will especially work in your favour when there are major online specials.