You've Been Warned: This Online Shopping Mistake Could Cost You A Ton Of Money

Whether you've been holiday shopping for gifts or buying staples for your home, chances are good that you have shopped online recently. According to data from Tidio, 70% of the entire U.S. population shops online, and that number increases every year. In 2017 there were around 215.5 million online shoppers compared to a projected 284.6 online shoppers in 2025. While there are some items you should never buy online, it's safe to say that most people are buying a significant amount of their monthly purchases via online shopping avenues. This can certainly add convenience to your life, though there could be some downsides to keep in mind before hitting the "add to cart" button.

The trend of online shopping isn't the only significant change in consumer shopping behavior. It's also worth noting just how much more online shopping is now happening on smartphones compared to laptops or home computers, and just how many more consumers are relying on "buy now pay later" services while online shopping. An especially important thing for consumers to keep in mind centers on the many potential online shopping mistakes that can end up making their online shopping purchases cost them substantially more than in-person shopping would. While consumers might know to avoid scams or suspicious websites, other shopping tactics to be wary of might not be as obvious. The biggest example? Avoiding expensive faster shipping options at checkout.

As tempting as it can be to receive your order quickly, you might be surprised to learn just how fast those expedited shipping fees can add up. This add-on splurge is also not helped by the fact that shipping fees have been increasing since the pandemic. As Calvin Harris Jr., a CPA, explained to Reader's Digest, online stores know you want your products fast and will use that to get more money from you, noting, "they offer expedited shipping that can add $15 or more to your bill." While that might not seem like a huge expense at the time you're purchasing, Harris Jr. warned against it. "If you expedited just one or two packages a month, you could spend over $200 extra in a year." Instead, he recommends always choosing whatever the fastest free shipping option available is.

While this can make your products take longer to arrive, it can be worth the extra financial savings especially if you are a frequent online shopper. According to a LendingTree survey, spending on delivery services went up 159% in 2023 compared to 2021. To make things more complicated, 65% of those surveyed reported being willing to spend extra money in order to save time but 44% admitted to spending more than they could afford in order to use these more expensive shipping services. Planning (and shopping) early can be the key to saving big when it comes to shipping fees.

If you're a regular online shopper you have probably noticed that shipping rates have increased across all carriers. On a larger scale, costs to ship via freight have increased astronomically. While many of these shipping increases were initially tied to the pandemic (during the COVID-19 pandemic shipping costs increased 572%) they have persisted in the post-pandemic environment. According to the Federal Reserve Bank of Boston, shipping rates increased 250% in the first seven months of 2024. All of this ensures that shipping anything from overseas is more expensive, which can then lead shipping companies to pass on those additional costs to consumers.

Domestically, mail carriers have followed suit with price increases. USPS increased most of its mail services by around 5.5% as of January 2024, not to mention its annual temporary seasonal price increases from October 2024 to January 2025. USPS also announced it will impose another round of significant price increase across all shipping products as of January 19, 2025. UPS rates will also increase by an additional 5.9% as of December 23, 2024, while FedEx will increase rates by 5.9% as of January 6, 2025. These price increases are due in part to long-term issues that stem from the COVID-19 pandemic. From increased fuel costs to companies expanding their capacity in the wake of increased demand for shipping (thanks in large part to the rise in online shopping) mail carrier services are ultimately passing on those additional costs to consumers.