The Pros and Cons of Online Shopping

It’s easier than ever to shop for everything on your list online. From purchasing boutique hand-crafted goods on social media to scoring hot deals on essentials from large retailers, the convenience and speed of online shopping is hard to turn down. However, there are situations where shopping online might not be the right option for you. Let’s look at some of the benefits and drawbacks of online shopping when you’re trying to find deals.

How online shopping has evolved

As the World Wide Web matured in the early 1990s, retailers began using the technology to sell their products. Amazon launched as a small online bookseller in 1994, with auction marketplace eBay not far behind in 1995. Since then, online shopping has exploded in popularity. In 2012, online sales were 8% of all U.S. retail sales. In 2021, it was up to 19.1%.

Today, customers can purchase almost anything online from their computer, phone or tablet. However, this transition to digital shopping hasn’t been perfect, and there are advantages and disadvantages to making purchases online.

Advantages of online shopping

The internet has made shopping more convenient, with a wide range of products at appealing prices just a click away. Here are some of the reasons online shopping has become so popular:

Shop anytime you want

Unlike brick-and-mortar retail stores, online shops are open 24/7. You can shop on the way to work, on your lunch break or after you’ve put the kids to bed for the night. Whatever you need, you can find it anytime.

Wider selection and easy comparisons

Browsing online can help you complete your shopping faster by allowing you to compare products and prices across multiple stores in a snap. Pull up several retailers in your web browser to see different options and be sure you’re picking the right product for you.

Exclusive online deals and discounts

Many stores offer deals, coupons and bundles that are only available online. These sales or offers might be announced via email newsletters or social media. The browser extension Citi Shop^SM can help Citi^® cardmembers automatically find and apply coupons from stores all over the web.

Recommendations made just for you

Using AI, retailers can suggest products and services related to your specific interests and needs. These recommendations can help streamline decision-making when you’re browsing hundreds or thousands of potential products.

Disadvantages of online shopping

Online shopping does come with some significant drawbacks, including shipping issues, security risks and even counterfeit products. Here are a few factors to consider:

Shipping issues and return costs

Shipping can often be a major roadblock to online shopping. Depending on the size of your item and when you want it delivered, shipping may add a significant cost to your purchase, counteracting the savings from a sale or discount.

Returning products may also be a hassle. You may have to provide your own box or pay the cost of shipping the item back instead of just bringing it back to the store.

No physical interaction with products

Items like clothes, shoes or furniture may be frustrating to purchase online because you can’t try before you buy. What’s more annoying than waiting a week to get that shirt you’ve had your eye on delivered, only to discover that it doesn’t fit?

Overwhelming options and quality control

Shopping online may allow you to compare a wide range of products, but that’s not always the best experience for the consumer. Endless pages of search results for simple items can result in decision paralysis or may even put you off purchasing something altogether. Some online retailers have so many options that it may be challenging to determine if the product you’re buying is legitimate or counterfeit.

Security and privacy risks

While most online retailers strive to protect their users’ privacy and personal data, even the most prominent companies aren’t immune to hacks and data breaches. If a company’s systems are breached by bad actors or personal data is leaked onto the web, it may be up to the consumer to make sure their information stays safe.

Should I buy online?

There’s no one-size-fits-all option when it comes to online or in-store shopping. The internet has made purchases easier than ever, but sometimes, that convenience causes more problems down the road. Do your research and purchase from well-regarded companies that match your values.

By understanding the benefits and drawbacks of online shopping, you can shop with confidence and stay within your budget.

Disclosure: This article is for general educational purposes. It is not intended to provide financial advice. It also is not intended to completely describe any Citi product or service. You should refer to the terms and conditions financial institutions provide for various products.