Online shopping experts’ tips to prevent an expensive trap

Scams, sales tricks and impulse buys can ruin your online shopping experience, so avoid these danger signs.

Online shopping continues to grow in popularity, but like all things technology related, there are new traps to watch for.

More households are shopping online than ever before and collectively spent $63.6bn last year buying goods using their smartphones, tablets and computers, according to Australia Post’s latest eCommerce Industry Report.

It says eight out of 10 households – about 9.5 million overall – shopped online in 2023. Whether you’re buying weekly groceries or hunting for specials at the end-of-financial-year sales, money specialists say it pays to know the pitfalls.

BE SAFE

ASIC’s Moneysmart says cybersecurity is a huge issue and there are other traps that also can part consumers with their money.

It says shoppers should know their rights as a buyer, including an online seller’s returns policy, postage or delivery fees, handling charges, currency conversion fees, international transaction fees and import duties or taxes.

Buying goods online can be confusing or dangerous for the unprepared. Picture: iStock

Moneysmart spokesman Andrew Dadswell says online shoppers should “be careful of deals that seem too good to be true”.

“They could be a scam or a fake product,” he says.

“If you haven’t heard of the business before, check independent reviews that are not on the seller’s website, to help you decide whether to shop with them.

“Use secure payment methods, like PayPal, PayID, PayTo or a credit card, and avoid sharing unnecessary personal information. Don’t save your payment information to an online shopping account.”

Dadswell says people using buy now pay later should ensure they know the fees and stick to a spending limit they can afford.

“Sometimes, even when you’re careful, things can go wrong. Check the seller’s website for details on how to contact them or make a complaint. If you have been scammed, report it to Scamwatch.”

AVOID IMPULSE BUYS

MyBudget founder and director Tammy Barton says buying bargains at the end-of-financial-year sales can be a great way to save money.

But she urges people to make a plan, shop with a purpose and beware of “because you bought” upsells.

“These recommendations for additional items might seem convenient, but they add to your total cost,” Barton says.

“Stick to your list and avoid impulse buys.”

Currency traps can catch shoppers when buying goods from overseas, Barton warns.

“It is easy to forget to check the currency, fall in love with something only to realise it’s in US dollars, and more expensive, once you’re attached,” she says.

One US dollar currently costs $1.50, so this error could cost you 50 per cent more.

MyBudget founder Tammy Barton shops online for groceries. Picture: Brenton Edwards

Barton is a big fan of buying groceries online, and lists 20 benefits of it including shopping bill updates as you add items to your cart, easy access to specials from the online catalogue, free delivery and ability to review options in order of the lowest unit price.

Online shopping platforms remind you when you have forgotten something and auto-fill your shopping cart, Barton says.

“Imagine you turned up at the supermarket and someone had already filled your cart with the stuff you usually buy – this is one of my favourite benefits of online grocery shopping,” she says.

But it’s not for everyone. People who prefer not to deliver all their shopping data to big business on a platter, or those who like to choose the fresh foods they buy – such as the nicest apples or bananas – may prefer traditional grocery shopping.

Consumers can use private mode when shopping online so stores cannot track your moves.

Queensland Consumers’ Association spokesman Ian Jarratt says online grocery shoppers should shop around and compare unit prices more.

“Many of them buy online mainly for convenience and to save time,” he says.

“As a result often they just buy the products they bought last time, which the main websites make it very easy for them to do.”

DECEPTIVE DEALS

• Bait and Switch: A product is advertised at a super low price, but then it’s out of stock or comes with hidden fees.

• Hidden Pricing: The advertised price excludes taxes, shipping or other fees that you only find out about at checkout.

• Misleading Sales: A sale might be advertised as a huge discount, but the product was recently inflated in price.

Source: MyBudget

Originally published as Online shopping experts’ tips to prevent an expensive trap