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It is very likely that you have already come across the marketing around Amazon Prime Day. The popular two-day sales event takes place on July 12-13 this year, and while some consumers may have already planned out exactly what they want to buy, there’s another customer base that knows they’ll be making impulse purchases on day of .
While making one or two impulse buys where you can get a good deal can certainly seem like it’s “worth it,” this type of buying behavior can easily lead to overspending and buying things you don’t really need, especially when it’s so easy just click. and buy
To better prepare you and your wallet for the Prime Day craziness, Select spoke with financial and behavioral experts to learn some tips and mind tricks that will keep you from making too many impulse buys.
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1. Pause before you buy
With Amazon Prime Day lasting two days, you can put an item in your cart on the first day and wait 24 hours before deciding to buy it. This gives you more time to sleep and decide if you really need the product instead of just buying it on the spot.
“Prime Day is a risk because it creates a sense of urgency,” Lauren Anastasio, a certified financial planner and director of financial advice at Stash, a popular investment app, tells Select. “Actually, you should be taking your time.”
Anastasio suggests considering how you would feel about the purchase in a month. If you can look ahead and imagine that the expense will have a significant impact on your life, it’s probably worth it. However, if he anticipates some buyer’s remorse because he wishes he had saved the money or spent it more wisely, it’s best to refrain. If he were to check his bank statement and see that charge, he would consider how he would feel about it.
Perry Wright, a senior behavioral researcher at Duke University’s Common Cents Lab, wants consumers to pause, too, and think about why certain products are on sale.
According to Perry, illusions of forced choice and scarcity normalize us into feeling like we’re being savvy consumers by taking advantage of Prime Day deals, but the deeply discounted items we see may actually be just the result of supply forces. . For example, a currently missing tech device may look attractive, but it may only be discounted due to an upcoming hardware upgrade.
2. Please check out other stores before paying
The item you’re about to buy on Prime Day might actually be cheaper at another online store, so be sure to compare prices on multiple websites to ensure you’re getting the lowest price.
“Amazon notoriously changes its prices on a daily basis,” adds Anastasio. This means that the list price of an item on Prime Day may be higher than the list price several days prior, making the discount less than you’d be led to believe.
Not to mention, other big-name retailers often have their annual sales during the same Amazon Prime Days, which means the price comparison idea is even more important.
Target Deal Days, for example, is an online-only sales event taking place July 11-13 this year, and customers can get deep discounts on everything from electronics, toys, and beauty to items for home, clothes and groceries.
3. Set limits in advance
Dan Egan, managing director of behavioral finance and investing at Betterment, a popular robo-advisor app, recommends setting limits beforehand, including both a dollar amount and a number of quantifiable items, come Prime Day. Even if this limit is self-imposed, it can successfully trick you into staying within your budget.
4. Know what you are looking to buy
According to Wright, Amazon Prime Day is best described as a “conveyor belt of sushi items” that is sometimes distracting and difficult to sift through.
Since the abundance of discounted items can be overwhelming for those who visit Amazon.com on Prime Day, be sure to sign in with a purpose.
Know exactly what you want to type into the search bar instead of browsing through random departments you never intended to shop at; This may resemble searching a general category like “snacks” instead of searching more specifically, such as “bulk savory snacks.”
To try and keep up with what you’re planning to buy, Egan recommends turning off Amazon notifications from showing up on your phone so you’re not tempted to buy anything else.
Anastasio also warns against purchases that attract attention only because of creative marketing. “If people avoid marketing, unsubscribe from emails, and avoid social media, actual shopping traffic on Prime Day is likely to plummet,” says Anastasio.
5. Announce your purchases out loud
One trick Egan recommends is saying what your anticipated purchases are out loud, saying that you’re less likely to splurge on an unnecessary item if you say, “I’m buying this because…” Doing so forces you to reflect on the purchase. on a deeper level.
Even if you explain the potential purchase to a rubber ducky, it should help you avoid overspending, Egan suggests. Or you can talk to yourself in the mirror to see and hear yourself say what you’re buying and really absorb it.
6. Add it to your cart, but don’t “buy now”
Amazon’s “buy it now” feature makes it super easy to get your shopping done quickly, but it can also mask how much you’re spending, since you’re buying things as one-time purchases instead of adding them to your cart and seeing the grand total.
Come Prime Day, Wright advises against using the “Buy It Now” button so as not to overdo it. “We tend to lose track of individual purchases in large bundle purchases,” he says.
When you’re ready to make a purchase on Prime Day
While the six tips and mind tricks outlined above can help Amazon shoppers avoid making too many impulse purchases on Prime Day, those who want to take advantage of the sales event to finally buy something they’ve been waiting for should definitely do so.
When you’re ready to make that Prime Day purchase you’ve been preparing for, consider using one of the best credit cards for all of your Amazon Prime Day purchases. Also, remember that you have to be an Amazon Prime member to be eligible for Prime Day sales. If you’re not currently a Prime member, there are ways to get a discounted or even free membership.
For avid Amazon shoppers and Prime members, the Amazon Prime Rewards Visa Signature Card is currently offering a welcome bonus for a limited time through July 29. New cardholders can earn a $200 Amazon Gift Card immediately upon approval and can earn up to 10% cash back on specially marked Amazon products, with rotating items and categories, among other gift-back perks. cash.
Amazon Prime Rewards Visa Signature Card
rewards
5% cash back at Amazon.com and Whole Foods Market; 2% back at restaurants, gas stations, and pharmacies; 1% back on all other purchases
welcome bonus
$200 Amazon.com Gift Card Upon Approval
Annual quota
$0 (but Prime membership required)
Introductory APR
ordinary APR
14.99% to 22.99% variable
Balance Transfer Fee
Foreign transaction fee
credit needed
For flat-rate cash back rewards on all other spending, the Citi® Double Cash Card is a nice addition to anyone’s wallet, with 2% cash back; that is, 1% cash back on all eligible purchases plus an additional 1% cash back once your credit card bill is paid.
Citi® Dual Cash Card
rewards
2% Cash Back – 1% on all eligible purchases and an additional 1% after you pay your credit card bill
welcome bonus
Annual quota
Introductory APR
0% for the first 18 months on balance transfers; N/A for purchases
ordinary APR
15.49% – 25.49% variable on purchases and balance transfers
Balance Transfer Fee
For balance transfers completed within 4 months of account opening, an initial balance transfer fee of 3% of each transfer ($5 minimum) applies; after that, a 5% balance transfer fee applies to each transfer ($5 minimum)
Foreign transaction fee
credit needed
Citi Premier® Card
rewards
3X points per $1 spent at restaurants, grocery stores, gas stations, and on hotels and air travel, 1X points on all other purchases
welcome bonus
80,000 bonus ThankYou® Points after you spend $4,000 on purchases within the first 3 months of account opening
Annual quota
Introductory APR
ordinary APR
17.49% – 25.49% variable APR on purchases and balance transfers
Balance Transfer Fee
5% of each balance transfer, $5 minimum
Foreign transaction fee
credit needed
Information about the Amazon Prime Rewards Visa Signature Card has been independently compiled by Select and has not been reviewed or provided by the issuer prior to publication; if you buy something through the Select links, we may earn a commission.
Editorial note: Any opinions, analyses, reviews, or recommendations expressed in this article are solely those of Select’s editorial staff and have not been reviewed, approved, or otherwise endorsed by any third party.
Source: www.cnbc.com