Finding the Best Deals Shopping Online

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October 2008

Busy schedules, rising prices, and costly gas have many consumers turning to the Internet to do their shopping. While shopping online can be convenient, it can also be costly if you aren’t careful. This month's report provides some tips to help you make sure you are getting the best deals while shopping safely online.

 

 

 

Make Sure It's a Deal

The lowest price doesn't always turn into the best deal. Make sure that any offer is actually a good deal by following these tips:

Tips for finding the best online deal Know the full or "list price." Make sure the final price includes shipping, handling, and any other fees. Don't assume that a price comparison site has the lowest prices. Pay by credit card.

• Know the full or "list” price. Then you'll know if you've found a bargain or a rip-off. A good source for the "list" or “recommended” price is the manufacturer's site.
• Read the product description carefully. You need to know exactly what you're getting. Don't use the picture to judge if it's the product you want. Look out for words like open-box, refurbished, and close-out. These and similar terms may indicate items that were returned or are in less-than-perfect condition. "To good to be true" prices on popular items may indicate they’re counterfeit. This is often the case with such items as shoes, purses, watches and the like, particularly on auction sites.
• Read the fine print. The fine print can hide important information about the product and the seller.
• Always review the shipping and handling charges. High shipping and handling charges can wipe out any savings on price. Also check the return policy. Some businesses don't allow returns at all; others have very short return windows such as a week, and some charge "restocking" or other return fees.
• Check for any strings attached to incentives. For example, free shipping on some sites requires a minimum purchase amount, purchase of specific products, or purchase of a specific quantity of a product.

Check Out the Seller

You'll want to check out a seller thoroughly before making a purchase. Check out the site—even well-known sites—using these tips:

• The contact information should include a physical address and phone number. If the only contact information is an email address, this is a big red flag – find another merchant. If there is a phone number but no physical address—a post office box isn't sufficient—call the phone number and see if you can talk to a person. Anyone can set up voice mail or an answering machine.
• Check out the reputation of the seller through the local Better Business Bureau or state Attorney General.
• Find and read the privacy policy. It should tell you what personal information the website collects, why it collects it, and how the seller is going to use it. Can't find the privacy policy or don't like what you read? Take your business elsewhere.
• If a site asks for your social security number or date of birth—go elsewhere. No merchant needs to know that information. With these two pieces of information someone can apply for credit cards in your name.
• Make sure that the address line in your browser shows "https." This indicates that the information sent between your browser and the website is encrypted. Most browsers show a locked padlock or other security icon in the address bar or in a corner.

Price Comparison Sites

Price comparison sites can be useful, but you'll need to choose carefully. Here are tips for using price comparison sites:

• What do the prices shown include? You should always compare the total price including shipping and handling.
• Check how frequently the prices are updated. Once a day? Each time you search?
• Don't assume that a price comparison site has the lowest prices. Compare the listed price by going directly to the merchant's site. Another site that doesn't participate in the price comparison site may have a lower price
• Check out the list of participating merchants. More merchants means more choices. You'll want to use a site which has well-known and well-respected merchants participating.
• Review descriptions, features, and model numbers to make sure that the listed prices are all for the same product.

There are also sites that help you find various incentives. Some better than others. For example, CouponCabin.com, which offers coupons for use online, doesn't require registration, you do not have to give them any personal information, and they have a good straightforward privacy policy.

Completing Your Purchase

Once you've found a good deal, complete your purchase and follow these tips:

• Pay by credit card. When you use a credit card, you can dispute the charges and usually the credit card company will help you resolve the issue. Under federal law you are liable for no more than $50 should your credit card be used without your knowledge and permission. Many credit card companies have implemented a $0 liability policy.
  
  Paying by debit card or electronic funds transfer is very risky because you are giving the seller access to your bank account. If more money than you authorized is removed from your account, getting it back could take months, if you get it back at all. If you pay cash directly to the seller, you usually have no recourse should you not receive your order or if there are other issues with it.
• Opt out. If you don't want newsletters, specials, or other emails from the seller, make sure you look for the opt out/opt in checkboxes during the checkout process. Make sure you scroll to the bottom of every page so that you don't miss any.
• Keep records. Print or save the product description, the order information, receipt, terms and conditions, seller contact information, and any correspondence with the seller including emails. You will need this information if you have any problems with your purchase.

For more information

safeshopping.org from the American Bar Association provides tips on security, privacy, payment, seller, product, delivery, and more.

Online Shopping from OnGuard Online contains quick facts, tips, and links to other resources.

Online Shopping from the FTC

Online Shopping: Be Safe & Smart from the Privacy Rights Clearinghouse provides tips and additional resources.

 

Prepared for Corning Credit Union by Remar Sutton & Associates, October 2008. All rights reserved.