Shopping Online Tips

10 Tips for Smart Holiday Shopping Online

Going online to shop for the holidays this year? Some of us do it to avoid crowds, some to save gas, and some for the convenience of shopping at any time of day or night. Experts are predicting that consumers will spend more online this holiday season than ever. In fact, a recent Forrester study reports that 11 percent of online shoppers said they would do three-quarters or more of their holiday spending online, translating to an estimated $33 billion in 2007, up from $27 billion in 2006.

The Federal Trade Commission (FTC), the nation’s consumer protection agency, and the National Cyber Security Alliance (NCSA), a non-profit organization devoted to cyber security education and awareness, want you to know that scammers follow the money and will be online this holiday season, too. To reduce the risk of a rip-off — and to protect your personal information and your computer from identity thieves and hackers — the FTC and NCSA offer these tips for safer and smarter online shopping this holiday season:

Check out the seller. If you’re thinking about shopping on a site with which you’re not familiar, do some independent research before you buy.

• If it’s your first time on an unfamiliar site, call the seller’s phone number, so you know you can reach them if you need to. If you can’t find a working phone number, take your business elsewhere.
• Type the site’s name into a search engine: If you find unfavorable reviews posted, you may be better off doing business with a different seller.
• Read the site’s privacy policy to learn how it uses and shares your personal information.
• Consider using a software toolbar that rates websites and warns you if a site has gotten unfavorable reports from experts and other Internet users. Some reputable companies provide free tools that may alert you if a website is a known phishing site or is used to distribute spyware.

Read return policies. Despite your best intentions, some gifts may need to be returned or exchanged. Before you buy, read the return policy. Some retailers give customers extra time so gifts can be returned or exchanged after the holidays; others give purchasers as little as a week — if they accept returns at all. A number of retailers offer shorter return windows for certain products and some charge “restocking” fees. Find out who covers the shipping cost — the customer or the merchant — on a return or exchange, and if your online purchase can be returned to a brick-and-mortar store.

Know what you’re getting. Read the seller’s product description closely. Name-brand items at greatly reduced prices could be counterfeit.

Don’t fall for a false email or pop-up. Legitimate companies don’t send unsolicited email messages asking for your password or login name, or your financial information. But scammers do. In fact, crooks often send emails that look just like they’re from legitimate companies — but direct you to click on a link, where they ask for your personal information. Delete these emails. They’re an attempt to get your information and to facilitate identity theft or other crimes. In addition, just clicking a link in a fraudulent email could install spyware on your computer.

Look for signs a site is safe. When you’re ready to buy something from a seller you trust, look for signs that the site is secure — such as a closed padlock on the browser’s status bar — before you enter your personal and financial information. When you’re asked to provide payment information, the beginning of the website’s URL address should change from http to shttp or https, indicating that the purchase is encrypted or secured.

Secure your computer. At a minimum, your computer should have anti-virus and anti-spyware software, and a firewall. Security software must be updated regularly to help protect against the latest threats. Set your security software and operating system (like Windows or Apple’s OS) to update automatically. Visit OnGuardOnline.gov and staysafeonline.org to learn more about security software, firewalls, and other ways to secure your computer.

Consider how you’ll pay. Credit cards generally are a safe option because they allow buyers to seek a credit from the issuer if the product isn’t delivered or isn’t what was ordered. Also, if your credit card number is stolen, you generally won’t be liable for more than $50 in charges. Don’t send cash or use a money-wiring service because you’ll have no recourse if something goes wrong.

Know the full price, and check out incentives. If you’re looking for the best deal, compare total costs, including shipping and handling. The holiday season is prime time for online retailers, and many are offering incentives like free shipping. But some “free” shipping deals may come with strings attached, such as requirements to spend a minimum amount or buy certain products. Consider whether one company offers a more generous return policy. If you use a price comparison site to find a bargain, enter the product’s model number, and be as specific as you can about its features.

Keep a paper trail. Print and save records of your online transactions, including the product description and price, the online receipt, and copies of any email you exchange with the seller. Read your credit card statements as soon as you get them to make sure there aren’t any unauthorized charges.

Turn your computer off when you’re finished shopping. Many people leave their computers running 24/7, the dream scenario for scammers who want to install malicious software on your machine and then control it remotely to commit cyber crime. To be extra safe, switch off your computer when you are not using it.

Stores are always trying to get you to do what they want. But what if you refuse? What if you do what benefits you and not the store? Aside from outright fraud, what are the things that you can do to come out ahead? We've put together 10 tips that will help you save money, but probably won't help the store. That's why they hate them. And you.

Buying Loss Leaders and Leaving: Loss leaders are products that a company sells below or at cost to lure customers into the store.

Why They Hate It: They do not want you to waltz in, buy up all the loss leaders and leave. Often there are limits to how many of each you can buy, if you see something in the ad that says "limit 3 per customer" you may have found yourself a loss leader. Buy it and get the hell out.

Using Credit and Paying it Off on Time: Sometimes stores will offer a "6 months, no interest, no payments" offer on big ticket items. Pay it off on time, and you've used their money for free.

Why They Hate It: These offers are not just to help you buy stuff, it's to trick you into paying more for the item than if you had paid cash. Some people take the cash they would have used to buy the item and put it in a high yield savings account. Then they buy the item with credit and wait until 5.9 months later to pay it off. They've just used someone else's money for 6 months for free. Ha, ha, ha. These offers are dangerous, however, because if you miss a payment or don't pay the full balance off on time, you'll get socked with interest since your date of purchase. The rates are often outrageous, so this tip is only for seriously organized Type-A people.

Saying NO to the Extended Warranty: Stores play on the fact that electronics are a big investment, scaring you into buying an Extended Warranty. Don't do it.

Why They Hate It: The Extended Warranty is basically just a trick to get you to pay way more for the item than you need to. It's very, very, very profitable for the retailer. If you don't believe us, believe consumer reports If you're worried about not having an extended warranty, purchase your electronics with a credit card that offers extended warranty protection. Lots of them do. Just paying for your crap with a credit card can double your warranty, so tell that sales clerk to get bent.

Activating Your Own Phone With A Cell Phone Company: You can buy a used phone, or an unlocked phone, for full price and avoid signing a contract.

Why They Hate It: Cell phone companies want you to sign a contract. They need you to sign a contract. They burn with desire for you to be under contract with them. Cell phone stores sell 2 year contracts. That's what they sell. Not phones. So get a phone, then call the cell phone company and activate it. No contract needed. They hate that so much.

Shopping in the Store But Buying Online: Stores are just places where you can look at things you will later purchase for cheaper online. Look at your new laptop. Try it out. Ask questions. Buy online.

Why They Hate It: They've paid for a store, the electric bill for the store, the employees to answer your questions, and those nice little plastic bags that they want to put your purchase in. Whoops.

Buying 1 When its 2 for $5: "2 for" deals are bull. You can buy one. You can buy 3. "2 for 5" or "5 for 10" means, "Please for the love of Jesus buy this and get it out of the store." You can pay the unit price. (Laws may vary nationwide)

Why They Hate It: They want you to buy more stuff than you need!

Opening A Store Credit Card To Get A Discount, Then Cutting It Up: This is one from our dear Mommy. Mommy buys a bunch of stuff at once, opens the store credit card for the 20% discount, pays it off and cuts up the card. She did this every year when buying our school clothes. We're sure they hate her with the force of a 200 mega-ton bomb, but she still saved 20%.

Why They Hate It: Credit card companies make money from interest and fees. No activity on the card, no interest and fees.

Using Websites to Track 30 Day Price Guarantees: Stores have "30 day price guarantees" to make you think they have such low prices that they're not going to get any lower. They may, but they also know you're not going to keep shopping for some crap you already bought. Solution

Why They Hate It: Because they have to give you money. No store ever likes to give you money.

Buying Seasonal Items at Clearance Prices (For Next Year): Seasonal items are a big deal for retailers and once the holiday is gone they need to make room for the next one. Their haste makes waste and you can take advantage of it. Buy now for next year. Another good idea is to buy "seasonal" candy after the season is over. So what if your M&Ms are brown and orange or red and green. Still tastes like awesome.

Why They Hate It: Stores want you to buy their seasonal crap at full price, when its most profitable, not during clearance when they sell it at cost or below.

Buy "Accessories" on Ebay Rather Than Paying Huge Markups: Retailers will often discount a big ticket item only to charge ridiculous prices for "accessories" that they will harass you to the point of madness to try to get you to buy. Expensive connectors, cables, controllers, leather lotion for your stupid coat you just bought, blank media, storage, etc. Buy this crap on eBay or at least research what it really costs at a retailer that is not trying to screw you. Case in point: Cables. Best Buy sells the Monster Ultra Series 8' HDMI Video Cable for $119.99. On Ebay the most expensive "Buy it Now" price for this cable is $74.95 with $9.95 shipping. For the exact same thing. And that's for a crazy brand name cable. There are 8' HDMI cables on eBay for $8.