Online Spending Set to Hit $1 Trillion... But it's not all impulse

Introduction

There is no doubt that online spending is on the rise, with US consumers projected to spend a record $1 trillion online by 2022. This increase in spending is driven by several factors, including the growing popularity of online shopping, the increasing availability of goods and services online, and the convenience and ease of use of online platforms.

However, it is important to note that not all online spending is equal. While some online purchases are made impulsively and without much thought, others are carefully considered and planned. As such, it is important to be aware of the different types of online spending to make informed choices about your spending habits.

When it comes to online spending, there are four main categories:

• Impulse buying
• Research-based spending
• Planned spending
• Habitual spending

Impulse Buying

Impulse buying is defined as purchasing without any prior thought or planning. This type of spending is often driven by emotions, such as excitement, happiness, or anxiety. While impulse buying can be satisfying at the moment, it often leads to regret and buyer’s remorse later on.

Research-based Spending

On the other hand, research-based spending is when you take the time to research a purchase before making it. This type of spending is more common for big-ticket items, such as vehicles or electronics. By researching a purchase in advance, you are more likely to get a good deal and be satisfied with the purchase in the long run.

Planned Spending

Planned spending is when you set aside money in advance for specific purchases. This type of spending is often seen as being more responsible than impulse buying or research-based spending, as it allows you to save up for a purchase and avoid going into debt.

Habitual Spending

Habitual spending is when you make the same online purchase or purchases regularly, without much thought or planning. This type of spending can be convenient and efficient, but it can also lead to overspending if you are not careful.

Conclusion

Which type of online spending do you most often engage in? And, more importantly, which type of online spending do you think is the most responsible?

Whatever type of online spending you engage in, it is important to be aware of the potential risks and rewards associated with each. By being mindful of your spending habits, you can make informed choices about your purchases and avoid regret later on.

Reference: https://www.reuters.com/world/us/us-consumers-spend-record-1-trillion-online-2022-report-2022-03-15/