In an episode of “The Rachel Cruze Show,” the Ramsey Solutions personality discussed online shopping versus in-store shopping, exploring which is better and which saves you more money.
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Below is a breakdown of the pros and cons that Cruze mentioned in her video. See if her insights can help you decide which shopping method is better for your budget.
Also see how much the average American spends on online shopping.
Benefits of online shopping
According to Cruze, here are some of the benefits of online shopping.
Offers available online only
Some retailers offer exclusive discount codes for online purchases during promotional periods, allowing you to purchase items for less than if you were to buy the same items in a physical store.
Tip: If the retailer you’re shopping at is local to you and you don’t want to wait or pay for shipping, check to see if the store allows in-store pickup of online purchases so you can still take advantage of the online offer without delay.
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Easy price comparison
You can easily compare prices from multiple providers online. With a little research, you can make sure you don’t pay more than necessary.
Tip: Online price comparison tools like ShopMania and Price.com can do the work for you.
comfort
Cruze said she likes to shop online because it allows her to avoid parking, crowds and long checkout lines.
Tip: Despite its convenience, online shopping can be costly if you often pay for shipping. If your goal is to save money, be careful about how much you’re paying for this convenience.
Customer reviews
Cruze emphasizes the benefits of reading customer reviews before making an online purchase. Most online retail websites display these reviews, making them easy to find.
Tip: Cruze also recognized that some online reviews are fake, but reading through several can still give you a good sense of whether you should buy something. According to PIRG, there are a few tips you can use to tell if something is fake. Pay attention to the dates to make sure all the reviews weren’t written at the same time, and look for similar wording in the reviews.
Benefits of shopping in store
On the other hand, there are also some advantages to shopping in person over shopping online.
Convenient shopping
You may not need to touch a new blender before buying it, but you may prefer to touch and try on the clothes.
Tip: Cruze recommends purchasing clothes in person unless you are sure a style fits your body.
Easier exchange
Exchanging an item online usually involves a return and repurchase. Exchanging in person at the store is usually more convenient.
Tip: Whether you’re shopping in-store or online, be sure to check the company’s return policy before you make a purchase to avoid being stuck with an item you don’t like or can’t use.
Instant gratification
Not all retailers can offer same-day delivery like Amazon, but when you shop in-store, you never have to wait days or weeks for an order.
Tip: Unless you need an item immediately, it may be worth waiting for delivery if the online price is significantly lower than the price in store.
Shop safely
When you shop in-store, you have a better idea of what exactly you are buying and can feel more secure than when you shop online. According to a study by the ICSC, the return rate for online purchases is three times higher than for in-store purchases.
Tip: You can also speak to a person when you shop in person. Take advantage of this opportunity if you have any questions.
Disadvantages of online shopping
And here are some disadvantages of online shopping.
Additional fees
There are a variety of fees that may apply when shopping online, including shipping, delivery, return, and restocking fees. According to USA Today, in 2022, 31% of retailers charged a fee for returns, and in 2023, that number rose to 40%.
Tip: Pay close attention to any potential fees that may apply to an online transaction to avoid a costly surprise.
Less control
Although Cruze shops for her groceries online, she admitted that some of the “shoppers” who select her groceries don’t exercise the same level of care as she does—a control that comes with online shopping.
Tip: If you don’t mind the occasional spotty tomato or moldy strawberry, it’s better to buy fruit, vegetables and other perishable foods yourself.
Decision fatigue
Sometimes the internet offers too many shopping options, which can be overwhelming. Consider Cruze’s example of buying a black sweater online. You will find thousands of options.
Tip: If you are presented with too many products, start looking at special offers and clearance items. A good price can save you time and money.
Complicated returns
Many online returns require a complicated, multi-step process. Amazon’s website, for example, has a seven-step checklist for completing a return.
Tip: Always check a retailer’s return policy before purchasing. You may not want to take any risks when returning.
Disadvantages of shopping in store
Alternatively, here are some disadvantages of shopping in person.
Time
There is no doubt that traveling to and from the store, walking up and down the aisles and waiting in line at the checkout will take far more time than shopping online.
Tip: When possible, self-checkout can significantly reduce your shopping time. Plus, you can more easily spot pricing errors when you check out the items yourself.
Crowds
When shopping in-store, you may experience queues at the fitting room or checkout line and crowds of people trying to move through the aisles.
Tip: If you don’t like crowds, you might want to avoid shopping in the store, even if it saves you money. Try to shop early in the morning or late at night when the store is less likely to be crowded.
Clever marketing tactics
Retailers use many tricks to get you to spend as much money as possible when you enter their stores. Falling for this tactic can lead to overspending. Take grocery stores, for example. “Supermarkets are purpose-built labyrinths. A customer is condemned to traverse the endless aisles from right to left, filling a huge shopping cart,” says Erply.
Tip: An easy way to avoid retailers’ marketing tricks is to shop with a list and not buy anything that isn’t on it.
Out of stock items
Cruze pointed out that items can sell out both online and in-store, but it’s especially frustrating to drive to the store to purchase a special item only to find the shelves are empty.
Tip: Many stores offer a coupon for out-of-stock items on sale, so be sure to ask so you can take advantage of the savings.
Shopping online or in store: which is better for your budget?
Cruze hasn’t made a specific statement on whether shopping online or in-store is better, but you can consult their pros and cons to decide if either method could save you more time and money.
To get the best deals, you’ll probably need both shopping methods. But some money-saving tactics – like shopping with a list to avoid impulse purchases, using coupons or coupon codes, and comparing prices – can help you save money no matter how you shop.
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This article originally appeared on GOBankingRates.com: Rachel Cruze: Shopping online vs. shopping in-store – which is the best way to save money?
