Click to save - put your money where your mouse is

Wilson Luna
Love to shop but hate the cost? With a little help from modern technology and a strong Australian currency, many people are finding out that putting your money where your mouse is can be a great way to save.

Sometimes it seems as though prices just keep going up, but for the most part, the quality of customer service doesn’t seem to increase to match them. But with the help of a little modern technology, unsatisfied consumers are putting their money where their mouse is … by trading in their trip to the local shopping centre for a spot of Windows (or Mac!) shopping. When it comes to what we do with our money, the internet has become a real game changer. In the past, our options were generally limited to what our local shops had on offer. Now we live in a global marketplace, and our choices are practically limitless – and research shows that Australians really are making the most of it!

While the retail sector grew just two per cent in the year to March, online sales soared, notching up a staggering 126 per cent increase in volume and 90 per cent increase in value last year. But Australia’s new love affair with saving is embodied by the sector that clocked the largest growth of all – group buying and coupon sites are exploding at a rate of 557 per cent. According to a study of over one million CBA customers, group buying sites account for 16 per cent of online spending, with online ‘discount’ stores accounting for another 32 per cent.

So, what’s prompting this switch to the point-and-click way? Obviously, part of the answer has to do with how much everything costs these days. With all the economic uncertainty in the air, and the pressure to cope with increasing prices, many people are finding that they need to do things a little differently to ease the financial strain. With a strong Australian currency, great savings available in online stores and coupon sites giving us a way to save at bricks-and-mortar businesses, it’s no wonder Aussies are heading to online website shopping so they can shop without blowing out the budget!

The rest of the answer could lie in the shopping experience itself. An Amex review of customer satisfaction found that 33 per cent of Aussie consumers believe that companies are ‘paying less attention to customer service’, and almost half say that businesses are making no extra effort to win their business. And for many people, service is a driving factor when it comes to how willing we are to spend: 73 per cent of us are prepared to pay more for excellent customer service. With online website shopping, Australians are getting both savings and convenience – and when it comes to getting the best deal, that’s an unbeatable mix! But as with all things, there are tips and tricks to getting the most out of your shopping experience, and some pitfalls to avoid!

Choose reputable sites
Finding a bargain is great, but it’s a lot less fun if your package never turns up at your door! And we all know there are professional scammers out there just itching to get their hands on your details and your cash. By shopping at reputable websites, you reduce the risk of falling victim to a scam, and good websites generally have systems in place to protect your details – look for a padlock symbol in your browser to indicate secure payment options, and if you’re in any doubt about the security of the site, don’t put your credit card or personal details on it.

Safe spending options
Cyber safety is vital when shopping online. Even the best website security can be breached, so it’s a good idea to use an extra layer of security when you shop online. Some sites will allow you to use secure payment systems such as Paypal, or you can sweep money into an account with a debit card attached so there’s a cap on the loss you can suffer if something goes wrong, rather than risking your entire credit balance by using your credit card.

Know the terms and conditions
Does the website charge for postage and handling? Can you get a refund? If you collect a coupon, are there limits to when and how you can use it? While something might seem like great value at first glance, there can be hidden costs that could turn your great bargain into a great big dud. Read the fine print and make sure you know exactly what you’re getting before you part with your cash.

If you know how to go about it, there can be great savings available online. So if you’re looking for the best saving options out there, go have a look around – finding a bargain is a lot more fun than window (little w!) shopping!

Author's Biography

Wilson Luna is an author, wealth adviser and founder of Your Family Your Money. Your Family Your Money’s goal is to simplify traditionally complex financial strategies, demystify financial jargon and debunk common financial myths, becoming every family’s first stop for financial advice, information and inspiration.