Two in five (42%) US consumers admit to blowing their budgets while online shopping in the past six months, increasing debt on credit cards.
According to new research from CouponFollow, a leading US online couponing platform that gives shoppers instant access to discount codes, which surveyed more than 1,700 American consumers on their spending and credit card habits, 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 quizzed in the survey, online shopping and credit debt go hand-in-hand, with around 29% reporting that they had gone into debt in the past six months due to online purchases.
For this reason, 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; more than 78% 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 from online shopping in the past, but most shoppers said $100 - $300 was the most online shopping debt they’d ever carried.
“While most consumers admit to occasionally overspending, retailers should take into account just how savvy many shoppers really are,” says 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.”
He continues: “Two-thirds of American consumers place at least one online shopping purchase per month, and that trend will only continue to grow. But 18% 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.”