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Be an informed online shopper

Getting a great deal used to be easy. Head to a couple of malls and compare prices or, even better, wait for the Great Singapore Sale (GSS). E-commerce has turned that model upside down, however, and more consumers are heading online to get a better price. Buying online is not always simple or does not always get you the best deal, however, so you need to figure out the best ways to shop.

A study by Google and Temasek estimates that online sales only comprise about 2 per cent of total retail sales in Singapore now, but PayPal expects volumes to grow by 15 per cent this year. TODAY file photo

A study by Google and Temasek estimates that online sales only comprise about 2 per cent of total retail sales in Singapore now, but PayPal expects volumes to grow by 15 per cent this year. TODAY file photo

Getting a great deal used to be easy. Head to a couple of malls and compare prices or, even better, wait for the Great Singapore Sale (GSS). E-commerce has turned that model upside down, however, and more consumers are heading online to get a better price. Buying online is not always simple or does not always get you the best deal, however, so you need to figure out the best ways to shop.

E-COMMERCE IS HUGE

E-commerce is indeed growing fast. More than three million consumers here already shop online, at merchants ranging from small local specialists to regional powerhouses such as Qoo10 and Carousell to global giants such as Amazon and eBay among the more popular sites.

Even though a study by Google and Temasek estimates that online sales are only about 2 per cent of total retail sales here now, PayPal expects that volumes will grow by 15 per cent this year to S$3.5 billion, and will expand even more in the future.

Nearly a third of that total will be spent overseas, however, as consumers look abroad for cheaper prices and items that are not available here.

And although the most popular items bought online still include clothes and electronics, patterns are shifting, and online purchases of everyday items such as groceries are growing rapidly.

Whatever consumers buy, however, lower costs are essential. More than half of consumers said in several recent surveys that the key reason they shop online is because of lower prices.

And even when they do not plan to buy online, many shoppers use their mobile phone to compare prices to clinch the best deal in physical store.

GETTING THE BEST DEAL

Between Google searches and e-marketplaces as well as bloggers and friends, it is easy to find plenty of online sites for whatever you want. Each person has their own favourites, so check various sources rather than rely on a single recommendation to find good online shopping sites.

When you do plan to make a purchase, it might seem that simply comparing prices or products on a few websites would lead to the best deals. And, indeed, comparison shopping is essential. Prices vary widely at different online retailers, with some reports showing that even prices of groceries differ by 20 per cent or more.

Beyond just comparing prices, however, savvy online shoppers know that doing more can sometimes bring costs down even further.

One method is to clear the cookies on your computer or phone, so retailers do not know you are coming back. Sellers may raise prices if you show up several times, since they know you are interested in the merchandise, and hiding your habits can keep prices lower.

Another way is to put the items you want in your cart, input your email address, get partway through checkout and then leave. Some websites will send an offer for a discount if you leave, so you can save money by using the offer within a few hours.

Signing up for deal alerts or retailers’ newsletters can also lead to savings, if you do not mind being inundated with messages.

SAVING EVEN MORE

Beyond just finding good deals and shopping strategically, other tactics can save you even more money.

One way is to use a credit card that offers rebates for online shopping. You can get 6 per cent cash back when shopping online with an OCBC Frank credit card, for example, or 7 per cent with a Standard Chartered SingPost card.

Some sites offer even bigger rebates. ShopBack, for instance, gives part of your purchase back as “cashback” when you shop on its site. “When you spend online through ShopBack, our merchants reward us with a commission for referring you to shop on their site,” it explains. “Instead of keeping the rewards all to ourselves, we share them with you.” Rebates can exceed 15 per cent.

When you shop overseas, there can be even more deals. If you are shopping in the United States, for instance, sites such as Coupon Sherpa offer a slew of coupons and discount codes that you can use to save money.

And to make shopping easier, sites such as PriceBlink and DreamCheaper automatically pull in lower prices from what they claim are hundreds of thousands of merchants. Services such as ezbuy or vPost can help save money on shipping those items back to Singapore.

STAYING SAVVY

While online shopping is easy and offers great deals, that does not mean you should not go to a physical store. Some retailers have in-store specials or items not listed on websites, for instance, and in-store advice or a chance to try on clothes can be helpful. GSS specials can be great too, and the new GoSpree GSS app offers coupons for more savings. Even so, comparing online and offline prices is still beneficial.

Some retailers are also merging online and offline, enabling shoppers to browse the stock or get more information about merchandise on a tablet in the store and order online.

Consumers say a human connection is a key reason they buy in-store, according to a survey in the US by WD Partners, and you can benefit when retailers deliver a personalised and unique in-store experience as well as connections with people.

For an increasing number of consumers here, though, online shopping is the way to go. Shopping smart to find deals and save more can make that online experience even better.

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