Overspending is common when shopping online
Report on digital spending and its impact on American's credit card debt
About 2 in 5 (42 percent) of consumers admit blowing their budgets while online shopping in the past 6 months, according to new research from CouponFollow, an online couponing platform. The new report surveyed over 1,700 American consumers on their spending and credit card habits to expose potential links between digital spending and debt while examining generational differences.
"While most consumers admit to occasionally overspending, retailers should take into account just how savvy many shoppers really are," said Marc Mezzacca, CEO of CouponFollow. "Those using credit cards show a clear preference for cash-back, low-interest, and reward cards. And shoppers across the board are clearly committed to seeking out discounts."
Key survey findings include:
- Overspending is the most commonly reported problem for online shoppers; two in five respondents said they had "blown their budgets" online within the past six months.
- For many consumers, online shopping and credit debt go hand-in-hand: Around 29 percent reported they'd gone into debt in the past six months due to online purchases.
- More than half of online shoppers prefer debit cards to credit cards, and those who do opt for credit are usually choosing cash-back cards.
- Deal searching is overwhelmingly central to the online shopping experience; over 78 percent of shoppers are searching for coupons before completing a digital purchase.
The report also highlights more detailed spending and debt ranges: More than a quarter of respondents reported reaching a credit card balance over 1,000 dollars from online shopping in the past, but most shoppers said 100 - 300 dollars was the most online shopping debt they'd ever carried.
"Two-thirds of American consumers place at least one online shopping purchase per month, and that trend will only continue to grow," said Mezzacca. "But 18 percent of those shoppers said they never splurge online. So, retailers have an opportunity to better cater to these deal-hungry shoppers and find new methods of earning their business."
For more information, download the full report "The State of Online Shopping and Credit Card Usage Habits In 2019".