You May Want to Do More Shopping Online for This Reason

Like saving money? Online shopping could make that possible.

At this point, most consumers are more than familiar with inflation and the way it's been wreaking havoc on so many people's budgets. In fact, a lot of people have been consistently dipping into their savings accounts and racking up debt just to keep up with essential bills. But while living costs are generally on the rise, there may be some good news with regard to online inflation. 

A slower pace

In May, online prices rose 2% on a year-over-year basis, according to the most recent Adobe Digital Price Index. But that actually represents a slower pace than April, when online prices were up 2.9% on a year-over-year basis. In fact, May is the second month that saw online prices increase at a slower pace.

Plus, of the various categories tracked by the Digital Price Index, most saw decreases in May. Those included electronics, apparel, and toys.

Will shopping online save you money?

It's a good thing that online price growth is slowing. But does that mean you'll get the best deal by purchasing goods online? Not necessarily.

The reality is that just as you might overpay for a given item at a store, so too might you end up getting stuck with a higher price if you choose the wrong online retailer. That's why it's a good idea to shop around when you're making a larger or non-ordinary purchase. And if money is tight, it pays to research prices for smaller items, too.

What’s more, when you buy goods online, you can get hit with higher costs in the form of shipping charges. It could help to bundle online orders strategically if you tend to shop on websites that impose a minimum for free shipping.

That said, gas prices are through the roof these days. And so in some cases, spending a few dollars on shipping could be cheaper than the cost of driving to and from a store. This might especially hold true if you live in a very rural area.

Be sure to track your purchases

One downside of buying goods online is not having to hand over a pile of cash to complete each transaction. And that could make it so you're less likely to be mindful of how much you're spending.

A better bet? Set a budget for online purchases and keep track of your credit card tab so you don't go overboard. The last thing you want is to rack up a balance you can't pay in full by the time it comes due.

A small dose of relief

In May, consumers spent an estimated $78.8 billion online. While it's a good thing that prices across a number of key e-commerce categories have dropped, that doesn't change the fact that the general cost of living is still considerably higher these days than it was a year ago. And so whether you tend to do a lot of your shopping online, in stores, or both, it's important to track your spending carefully to avoid debt during these tough economic times.