5 Sneaky Online Shopping Fees Consumers may be Unknowingly Spending Money On

The convenience and ease of online shopping today remain unrivalled. As consumers across the world opt for benefits linked to ecommerce, many reportedly remain unaware of the amount of “hidden fees” associated with it that may silently increase their final bill. 

To help consumers better understand the costs linked to online shopping, an online platform for prescription glasses, Overnight Glasses, created a checklist of the most common add-on costs and how to spot them, giving consumers more control over their spending.

1) Be sure to check for speedy shipping, rush processing, gift wrapping, and other pre-selected auto add-ons.

Online retailers often offer optional extras like extended warranties, gift wrapping, and expedited processing, which can be pre-selected when checking out. 26 percent of online shoppers unknowingly paid for additional services that they did not intend to, by not unchecking pre-filled boxes when checking out, according to a recent survey from Better Business Bureau, making it a must to check these add-ons at checkout. “People often speed through checkout without realizing they’ve agreed to optional add-ons,” said Gidon Sadovsky, CEO of Overnight Glasses, in a statement. “These services may only cost a few dollars each, but across multiple orders, they become a consistent source of unnecessary spending.”

2) Browse privately to avoid price increases linked to your online activity

Did you know that online prices can vary depending on consumers’ devices, location, or browsing history? Known as dynamic pricing, research from Northeastern University found that prices on leading retail websites can alternate as much as 10 to 20 percent depending on the consumers’ browsing history. “A returning user or someone in a high-income zip code may see higher prices for the same product,” said Sadovsky. An easy loop is to shop in incognito mode or to use a VPN to hide your location.

3) Check the return policy to avoid paying associated fees

Today, it’s not uncommon for many shoppers to assume that returns are free or included in the original order price, but unfortunately, that’s not always the case. According to a report from the National Retail Federation, US consumers pay over 9 billion dollars in return-related fees annually, as brands and retailers charge for return shipping or ask for restocking fees to cover shipping costs. “People assume returns are free, but in many cases, the cost of return shipping or restocking can significantly reduce your refund,” warned Sadovsky.

4) Review your credit card coverage before opting for a product warranty

Retailers may offer extended warranties for certain products, especially electronics, home goods, etc. However, many credit cards already include purchase protection, extended warranty coverage, or other benefits that might make buying additional product warranties unnecessary. “In many cases, your credit card already provides purchase protection, or the manufacturer’s warranty is sufficient,” notes Sadovsky. Data from Consumer Reports found that 55 percent of consumers who purchased extended warranties never used them, and an existing plan already covered 38 percent. So, consumers would be wise to double-check credit card offers before spending extra money on protection plans they may already have. 

5) Read the fine print of shipping terms to make sure delivery is included

Brands and retailers often promote free shipping, but it is usually applicable to a minimum spend and may exclude heavy or bulky items and certain delivery countries. Double-checking the fine print before placing an order can help avoid unexpected shipping fees, which, according to Statista, is the number one reason shoppers abandon their cart before checkout. 

“Most hidden fees show up at the very end of the checkout process—so one smart tactic is to simulate a purchase before you actually commit,” concludes Sadovsky. “Add the item to your cart, go through checkout until the final review screen, and take note of any surprise handling fees, shipping costs, or add-ons. Then close the tab and compare it with other retailers offering the same product. You’d be surprised how often the same item is available elsewhere with fewer fees—and this one-minute check can save you real money.”