Shopping has evolved dramatically in the past years and some people are doing all of their shopping online. Still, others swear by the tactile experience and benefits of the brick-and-mortar experience. But which one saves more money? This article will compare the two options and attempt to determine the more cost-effective choice.
Online Shopping
Online shopping has grown exponentially in recent years, driven by the allure of convenience. With simple clicks, consumers can browse a vast collection of products, read reviews, and make purchases from the comfort of their homes. This convenience often translates to time savings, but what about money?
Lower Overheads: Online retailers typically have lower overhead costs compared to brick-and-mortar stores. They do not need to maintain physical storefronts, which can result in lower operating costs. This cost advantage is often passed on to shoppers in the form of lower prices and better deals.
Coupons & Discounts: Additionally, online retailers frequently offer exclusive discounts, flash sales, and promotional codes that can significantly reduce the final cost of a purchase. Websites and apps like Coupert can automatically compare and apply the best promo codes at checkout, helping you to save with ease.
Price Comparisons: Online, consumers can quickly scan multiple retailers to find the best deals, something that would be much more tedious in a physical store setting. There are also price comparison websites that aggregate and display the lowest prices across multiple online stores, taking the literal leg work out of the equation.
Loyalty Programs & Subscriptions: Online retailers often incentivize repeat purchases through loyalty programs and subscription services. Amazon Prime, for example, offers members free shipping, access to exclusive deals, and discounts on certain products. These features can add up to considerable savings.
Price Tracking Tools: For non-urgent purchases, tools like CamelCamelCamel for Amazon allow consumers to track price changes on their desired products. By biding their time and waiting for the lowest historical price, consumers can ensure they are getting the best possible deal.
In-Store Shopping
Despite the ease of online shopping, many consumers still prefer the in-store experience. The ability to see, touch, and try products before purchasing can be a significant advantage, especially for goods such as clothing or expensive electronics. But is this preference reflected in cost savings?
Sales & Clearance: Physical stores often have dedicated sections for sales, clearance items, and seasonal discounts. These are particularly handy for perishable items like bread or fresh produce, which can be as much as 50% cheaper in-store as they inch closer to their used-by date.
Local Sales & Promotions: Retailers often tailor their promotions to local markets, which means you can take advantage of sales that are specific to your area. For example, the store may have an anniversary sale or a loyalty program that offers discounts for local residents.
Personal Relationships: In-store shopping allows for direct interaction with sales staff and shop owners. This personal touch is often lost in the sterile online environment. Familiarity and friendships with in-store staff can sometimes lead to better prices or special offers not available to general shoppers.
No Shipping Costs: While online shopping often involves shipping fees, in-store shopping eliminates this cost. For large or heavy items, shipping fees can be substantial, sometimes negating the savings from online discounts. In-store shopping allows consumers to avoid these extra costs altogether.
Immediate Access: A key benefit of in-store shopping is instant gratification. There is no waiting for shipping and you can buy and take home your item right away. This is important for time-sensitive purchases such as fresh food, essential toiletries, or last-minute birthday gifts.
Online vs. In-Store
The answer to whether online or in-store shopping saves more money is not as straightforward as we originally thought. Both methods of shopping have their advantages and potential for savings. When choosing the best method, here are some key considerations:
Product Type: The type of product can significantly impact where savings are found. For electronics and books, online retailers often have lower prices due to higher competition and lower overhead costs. Conversely, for furniture and large appliances, in-store shopping can save on substantial shipping fees.
Location: Geographical location and accessibility to stores can influence cost savings. In urban areas with numerous stores nearby, in-store shopping may be more convenient and cost-effective. However, for those in rural areas, the convenience of online shopping might outweigh the occasional shipping cost.
Sales & Promotions: Both online and in-store retailers offer sales and promotions, but their frequency and magnitude can vary. Black Friday and Cyber Monday are examples where online deals often surpass in-store offers. Conversely, local store sales and clearance events might offer deeper discounts on specific items.
Return Policies: Return policies can also affect overall savings. While large online retailers usually offer easy return processes, in-store returns are immediate and do not involve shipping fees. Being clear about the return policy of the store from the onset can help avoid potential costs associated with returns and exchanges.
As each method of shopping has its strengths, perhaps the best approach is to combine the two—using online research and coupon apps to find the best deals, then visiting the physical store to examine the product and see if there are any in-store promotions before committing to the purchase online. In doing so, you may be able to shop smarter and save more.