Larry Schopfer asked: Every shopper knows how to comparison shop. You do it every time you pick up an item in the grocery store. First you look at the name brand orange juice…then you look at the store brand juice. After comparing prices and perceived quality differences, your choice ends up in your basket.
Well, comparison shopping on the Internet is no different. In fact, in many ways, it is much easier. Here is a step by step guide to shopping on the Internet AND maximizing your savings at the same time.
1. Pick a comparison tool
There are many automated price comparison tools available on the Internet. CNET Shopper, Shopping.com, NexTag to name a few. My favorite is Google’s Product Finder, also known as Froogle.com. Use your price comparison tool to get a feel for how much the product really costs. You will be surprised at the wide range of prices that any product search will yield.
2. Focus on sites that offer free shipping and no sales tax
While doing your search, be sure to pay attention to which sites offer free shipping and which sites do not charge sales tax. Shipping and tax can add a significant amount to your purchase. Paying both can easily take your “lowest cost” vendor and make it not the lowest cost.
Sales tax is charged by businesses that have a physical presence (store, warehouse, office) in your state. You will find that online purchases from nationwide retailer like Walmart will include sales tax, while smaller more specialized businesses may not.
3. Check for coupons and cash back rebates
One of the best kept secrets on the Internet is the existence of rebate shopping sites. These are sites that have links to many of your favorite retailers. By following their links, you can receive rebates of up to 20% or more. Most retailers are not that generous, but cash back of 2% or 5% adds up, too.
There are several rebate shopping sites on the Internet, but my favorites are ebates.com and mrrebates.com. Both offer cash back and send checks (or electronic payments) on a quarterly basis. It is possible for each site to offer different rebates for the same retailer, so be sure to check each one before starting your online shopping trip.
These sites also offer coupons that could lead to additional discounts or promotions such as free or reduced shipping charges. Be sure to check these deals out, too.
4. Making the purchase
First you comparison shopped. Next you considered shipping and sales taxes. Then you clicked through a rebate site to get some nice cash back. Now, it’s finally time to make that purchase. Be sure to use a credit card that provides cash back or other valuable rewards when you make your purchase.
To help you understand just how important it is to follow these steps, I have put together a real-life case study. The product happens to involve a video game system, but you could substitute virtually any product and experience a similar outcome.
CASE STUDY
The other day I receive an email from Microsoft telling me that my kids’ one month trial of Xbox Live Gold is set to expire. I click the link to renew the membership and find out that Microsoft is asking only $49.99 to extend it for 12 months. Seems pretty reasonable, so I reach for my credit card.
Then I remember seeing these Gold memberships sold at retail and not just at Microsoft. A quick visit to Froogle (what’s Froogle?) reveals a low price of $34.99 (no tax and free shipping) from the five-star online techie retailer Newegg.
And if that’s not enough, I log into my eBates.com account to find that there’s a 1% rebate if I click the Newegg link through eBates. Don’t forget to check MrRebates.com, too. Sometimes they offer different cash-back percentages!
Let’s do the math…
Cost at Newegg (plus ebates.com) = $34.99 minus $0.35 rebate = $34.64 compared to $49.99 plus sales tax at Microsoft.
Theresa
