Online shopping aka e-commerce is taking the world by storm with record sales being made. How can you be a smart and savvy online shopper in the face of retail therapy temptation?

Understanding the Online Shopping Craze

Online shopping is one of the fastest growing trends where e-commerce sales globally in 2019 amounted to USD3.5 trillion ($3,500,000,000,000) and is projected to grow to USD6.5 trillion ($6,500,000,000,000) in 2020 which is a +85% growth rate year on year!

Retail Therapy: a practice of shopping to make yourself happy by spending money.

Online Sales Shopping Event: Alibaba ($baba) turned singles day 11.11 into an online shopping phenomenon starting 11 years ago and hitting a record USD30b in sales in 2019.

With online shopping being a favorite past-time of many, how do you navigate the online sales days with catchy numbers ranging from (1.1 on January 1st, 11.11 on November 11th, to 12.12 on December 12th)?

1. Why is Online Shopping Cheaper and More Popular?

Online shopping’s biggest advantage is that it is quite often cheaper, especially if you shop when there are special sales days or promotions. Online retailers can keep costs lower because it often comes directly from the manufacturer or seller without having to go through an additional layer for a middle person and with online shops often having lesser overheads compared to a brick and mortar psychical shop. Prices are especially competitive as you can compare between multiple sellers easily and quickly on factors such as pricing, delivery handling, and customer service. You can also shop from the comfort of your home at the click of a button without having to go physically to a shop which involves additional travel time and costs.

2. Can Online Shopping be Trusted?

Online shopping nowadays is relatively safe as you can check on various metrics such as the sellers’ rating, customers’ reviews, and most platforms specifically mark trusted sellers. Some online shopping platforms and credit cards also offer buyer protection on online shopping. You  do need to make sure that you read the fine print and verify that it’s a genuine product instead of an imitation lookalike knockoff.

3. Which Online Shopping is the Best?

The top seven most popular e-commerce online shopping platforms in Malaysia include:-

  1. Shopee was founded in 2015 in Singapore and owned by Sea Group. It is the 4th most popular site in Malaysia.
  2. Lazada was founded in 2012 in Singapore and owned by Alibaba Group. It is the 9th most popular site in Malaysia.
  3. Mudah.my was founded in 2007 in Malaysia and is part of Carousell. It is the 19th most popular site in Malaysia (Carousell is 198th).
  4. PGMall was founded in 2017 in Malaysia and founded by Public Gold Group. It is the 92nd most popular site in Malaysia.
  5. Zalora was founded in 2012 in Singapore and is an online clothes retailer owned by Zalora Group. It is the 249th most popular site in Malaysia.
  6. Lelong was founded in 2007 in Malaysia and is owned by Interbase Resources Sdn Bhd. It is the 408th most popular site in Malaysia.
  7. PrestoMall was founded in 2014 in Malaysia and formerly known as 11street Malaysia. It is the 1.8k most popular site in Malaysia.

Note: Site popularity based on Alexa Malaysia rankings at time of article publication

4. Which Online Shopping App Should I Use?

Different platforms have different products on offer with most online platforms having an app as well for ease of shopping. Overall Shopee and Lazada are the two most popular online shopping platforms with the largest variety of products being sold (including houses from developers on their platforms!). Shopee and Lazada have ewallets for faster checkouts, secure payments and instant refunds. Shopee and Lazada also have games on their apps to earn coins which you can exchange for vouchers or freebies. Mudah/Carousell and Lelong are noteworthy for also offering preloved goods while Zalora is the leading online shopping for clothes. A bonus tip is that there exists platforms like Shopback which offer cashback/coupons for using their affiliate shopping program.

Source: Lazada

5. Can Online Shopping be Addictive?

Compulsive shopping can be a bad habit or in worst-case scenarios a disorder. Malaysians spend a high percentage of time online and online shopping is a reward loop as online platforms make is as easy and friction free as possible to shop online. Buying things that you don’t need can lead to hoarding, clutter and going into debt. Uncontrolled shopping are a leading cause of Malaysians to be caught in a debt trap. Signs you are addicted to shopping include:-

  • Online shopping hurting your relationships and loved ones expressing concern.
  • Online shopping affecting the quality or performance of work.
  • Online shopping affecting your finances or causing you to go into debt.
  • Online shopping for things that you don’t need, never use or can’t afford.
  • Online shopping is always on your mind and you get upset when anything stops you from online shopping.

6. What Should I Not Buy Online?

Despite the ease of shopping online, there are certain things that you may want to think twice before buying online. Certain purchases just make more sense to buy offline despite the extra hassle. Certain things require a more tactile touch to see if you really like it. Examples of things you should not buy online include art, furniture, mattresses, cars, and musical instruments. For certain other personal items such as make up, you may want to test out the products in person to make sure it suits you before making reorders online. You should also be wary about sellers especially when there are deals that are too good to be true – it usually isn’t!

7. How Can I Spend Responsibly on Online Shopping?

A key way to handle online shopping is to plan out a budget for shopping monthly and spend within the budget. This means no unplanned purchases above a certain (low-ish) amount. Plan out in advance what you want to buy and then be a smart shopper to maximize your savings by buying when there are sales and promotions on. Your overall expenses including online shopping should be below 60% of your total income with online shopping/wants being at most 10% to 20% of your overall expenses.

Overall

Online shopping platforms and frequent sales are changing how consumers spend. This trend has accelerated with the Covid-19 pandemic and online shopping increasingly having social elements such as influencers. Be a smart and savvy shopper taking advantage of deals but not being taken advantage of!

Share and discuss your online shopping tips!

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