6 Ways Holiday Shopping Can Go Wrong (Avoid These Common Mistakes)
HOLIDAY - SHOPPING - GUIDE
Published On: October 26, 2022
It’s November and brands are already enticing customers with juicy deals and discount offers. Email inboxes are full of ads that go like “95% Off Plus Free Shipping, Use Promo Code XYZ”. Social media timelines are filled with FLASH SALES and LIMITED TIME OFFERS.
Six Times When Holiday Shopping Backfires
Discounts leading to money loss might sound the same as cardio exercises leading to heart failure. But it’s more common than you think.
In 2018, the Center for the New Middle Class conducted a study that found that 50% of shoppers spend more than expected on holidays. Even 38.5% who used coupons said they overspent.
This shows the shopping season can work against you if you’re not careful. Most people think about what to avoid when going on holiday shopping. So, here are six-holiday spending mistakes you should avoid at all costs.
1. FOMO Causes Customers to Buy Unnecessary Items
Some things are too good to be ignored. 60% off on a toaster? Won’t find deals like these anytime soon. It’s the fear of missing out that dictates many purchase decisions when November starts.
But before you put an item in your cart, ask yourself this; Do I need a new toaster? Is the old one broken? If the answer is no then save yourself the trouble.
One trick that will save you from FOMO-induced shopping is considering whether you will pay the full price for the item you’re about to buy for a discount. Again, don’t proceed if the answer is no.
“Getting the best price is a part of smart shopping but there are other factors involved as well,” says Alex Reynolds of EMUCoupon. “You could be getting 90% off but if you’re buying unnecessary items, there will be bad things about your shopping”.
Alex has singled out six ways to stay on track for people who wish to avoid unnecessary spending.
2. Online Scams Result in Financial and Personal Damage
Identity theft on Black Friday is more common than one would assume. As the world prepares to shop its heart out —the online scammers rub their hands as they prepare to prey on innocent netizens.
More transactions online provide better thieving opportunities. ACI Worldwide reported that the attempt of fraud increased by 22% in 2017 between Thanksgiving Day and December 31, the same period when online shopping is high.
Interestingly, it’s not Black Friday when fraud attempts are highest but Thanksgiving Day. Thieves anticipate this time of the year even more so than the shoppers.
It’s imperative to say that you cannot be too careful while trying to avoid hacking and phishing attempts. Identity theft results in more than just financial loss, in the worst-case scenario, it could have some serious legal implications.
Therefore, customers need to take every necessary step to avoid giving away their sensitive information to cybercriminals.
3. Too Much Spending Leads to a Tight Christmas
One of the common holiday shopping mistakes is the failure to consider Christmas expenses. While a lot of people buy gifts in this period, this doesn’t cover the entirety of holiday expenses.
Almost always, Christmas brings with it some unanticipated spending that is beyond the usual gifts and decorations because you don’t plan proper
money-saving and money-spending strategies. Credit card rating provider Experian points out in a new report that these expenses can bring about a great level of financial stress for customers.
“According to the survey, most stress comes from unexpected added expenses beyond gifts, such as postage costs, hostess gifts, gift-wrapping supplies, and greeting cards," Experian explained to The Street.
Covering these expenses requires putting specific money aside every month leading up to Christmas. One can either put the money into a Christmas savings account or just earmark their conventional savings account.
This will make sure you don’t have any trouble paying for the unpredictable expenses that surface during the holidays.
4. Credit Cards Give a False Sense of Security, Debt Follows
It’s never recommended to go on a Black Friday shopping spree with your credit card. This is because credit cards give a false sense of security as many folks mistakenly assume credit limits as their money.
But that’s not the case. Credit card money is a borrowed amount that will be paid back with interest. Using them to attain doorbuster deals is just like borrowing money from your uncle to buy something that’s on sale at your local mart.
Although it would make sense to borrow for a car you desperately need —it’s not logical to use loaned money for a 50 Inch LED TV because it has a 20% discount. Using a credit card on Black Friday means you will be paying for your purchase for months or even years.
People tend to overspend with credit cards compared to cash. Perhaps physical money leaving your hand feels much more real than some numbers being deducted digitally.
5. Search for Discounts Lead to Faulty Products, Return becomes an Issue
After getting the
best deals on Black Friday, sometimes it’s as much about getting bragging rights as it is about money. But the question is finding the biggest discount could result in buying from unreliable vendors.
It doesn’t matter if you were successful in finding the promo code that removed 90% of the price if the product is of low quality. This happens quite a lot during the whole shopping week and it has more than just financial implications.
Let’s say you were buying a gift for someone but it comes in damaged, it would destroy any date you had set for delivering this gift. Do note that shipment arriving broken is quite common on Black Friday because a bulk of orders are processed these days.
Of course, you’re unlikely to face such issues while shopping in-store but most of the shopping this year will take place online. Getting refunds or exchanges with many online shopping companies is a miserable experience. And you’re likely to suffer if you shop from undependable retailers.
6. Wait For the Last Minute Shopping
Some people do last-minute shopping on holidays. There is a disadvantage to last-minute shopping like you will have limited stock, limited time to compare the prices, and checking the
clothing discount deals. You may spend more due to the emergency shopping and not find that perfect item you want.
Shopping for all things in December could give you stress and sometimes you don’t get what you need. During this time you will be more likely to use credit cards, your balance will be high and you can’t afford to pay off the interest rates.
Three Things to Do This Black Friday
It’s not just vital to avoid common Black Friday mistakes but also to have a calculated strategy ahead. The entire Thanksgiving week can be extremely fruitful for those that approach it tactically.
Here are three must-dos for anyone looking to make the most of their money this month.
1. Create a Budget
Having a budget is a great defense mechanism against overspending. Nowadays retailers also make a
budget to increase sales. That’s why you need to set aside time to put your incoming expenses in black and white. Here’s how you start on a budget:
- List down holiday expenses
- Have a buffer in case you forget something
- Make sure to have a specific number in mind
Remember, a budget is a great place to start but it doesn’t guarantee savings. In the words of publisher William Feather; “A budget tells us what we can’t afford, but it doesn’t keep us from buying it.”
Ultimately, it’s up to you to hold yourself accountable.
2. Use Coupons Wisely
Availing
coupons in any category helps you to save more if you use them with caution. If there’s something you want to buy and there’s a discount code available, there’s nothing better.
But as with all your purchases, the focus needs to be on how much you’re spending rather than how much you save. A coupon that gives you $40 off on a $300 product might seem tempting. However, spending more to save more kills the entire purpose of availing the discount. Refer to the previous point and stick with the budget.
3. Realize These Are Uncertain Times
Lastly, you need a holistic view of things while spending money. The pandemic has caused millions to lose their jobs and even though the economy is recovering —we are not out of the woods yet.
We are currently braving the second wave of the virus and although the development of the vaccine is welcome news, it will take some time before the majority of the population is immunized.
So make sure not to go overboard with your shopping this year as the economy is still uncertain.
Conclusion
The holiday shopping season comes with its own set of risks and rewards. Avoiding these risks and availing of the rewards is a science within itself. While retailers will try to lure you in with generous discounts and tempting coupon codes, you need to avoid unnecessary spending.
Fight your instinct to buy impulsively, deal with reputable companies and have a budget prepared ahead. Only by approaching shopping strategically can you avoid the common holiday buying mistakes and use Black Friday for its real purpose; to save your hard-earned money.
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