Online shopping bloopers cost Brits £5bn
UK online shoppers have on average £107 worth of unused internet purchases lying around their home which they have never used. Collectively this equates to unused goods bought on the web, totalling a whopping £5bn, according to a new survey of the nation’s online shopping habits by the Money Advice Service.
The average online shopper is currently spending £948 a year on items including the latest gadgets, objects to spruce up their home and the hottest fashion trends – but with £107 lying around unused, a total of 11% of their annual spend is simply collecting dust and going to waste. If the items were returned or sold on, the cash could provide a nice boost for many Brits’ savings pots or be spent on something they really want.
Top 5 items purchased in last year and not used - Percentage of respondents
Clothes 53%
Electrical items 24%
DVDs / Blu-rays 23%
Household items 18%
Music 14%
Reluctance to return
Fifty nine per cent of online shoppers said they were less likely to return items purchased online. Of these, 83% said it was ‘too much hassle’ to go to the effort of posting the item back. An additional 13% said they ‘tend to forget’ whilst one in ten (9%) said they simply don’t have the time.
A quarter of all online shoppers surveyed said they ‘can’t afford to save’ any money at all. This is particularly concerning as the proportion of those in this group who said returning unwanted items was ‘too much hassle’ rose to 91% - indicating those who are in most need of boosting their savings are the least inclined to return or sell unwanted items.
Responding to the findings, Jackie Spencer, a money expert at the Money Advice Service, says: “We all make a wrong purchase from time-to-time, and it’s so easy to do this online, especially when clothes shopping. But hoarding unused purchases at home, rather than returning them when you can, makes no financial sense - it’s the equivalent of sitting on a pile of burning cash.
“So if you have unloved, new purchases around the house, return them if you can, or get busy selling them online to generate some extra cash for a rainy day. You’ll feel great knowing you have saved money, and freed up some valuable space in your home.”
Most common places to store unwanted items: Wardrobe (41%); Spare room (35%); Garage (16%)
Lack of understanding of online returns policies: 84% admitted they don’t ‘completely understand’ them.
Top tips for savvy shoppers
1. If you’re a self-confessed shopaholic, try our Cutback Calculator to see how much spare cash you could find by being a savvier spender. For example, if you spend £20 online a month on average - buying clothes or gifts etc - that equates to £240 a year. Leaving just a fraction of that value unused at home is simply throwing money away!
2. Special offers can be a great way to save money, but not always - sometimes you can end up paying more than you normally would. Make sure you work out whether a deal really is as good as it looks, and if a '2-for-1' or '3 for £1' offers will actually save you money.
3. When buying online, stay alert for warning signs and take extra care if you’re buying from a company that’s not well known – it’s not as safe as buying from the big, reliable household names. If you can’t find an address and contact details, be very cautious. More advice at: moneyadviceservice.org.uk/en/articles/shop-safely-online
4. Online discount vouchers can be a great way to save on shopping and eating out. But beware the enticing offers – especially for groups - which actually tempt you to buy something you didn’t need in the first place, or spend a lot more than you intended.