Stuff Really Is Cheaper Online
When it comes to electronics and appliances, it pays to shop online, according to new data out this week that was analyzed by the New York Times.
Consider televisions. While data from the new Adobe Digital Index shows that the cost of televisions bought online dropped 20.3% over the course of a year, data collected by the Bureau of Labor Statistics shows the cost of televisions bought in-store falling just 15% during that time, the Times says.
Refrigerators, dishwashers, furniture and bedding also saw bigger price drops online versus in-store, the Times found. (Online groceries, on the other hand, rose in price while in-store groceries got cheaper.)
“Large parts of the economy, a fast-growing part, is now e-commerce-oriented,” Austan Goolsbee, a former economic adviser to President Obama and currently working with Adobe, explained to the Times. “And Amazon’s prices are much cheaper, and if everybody’s doing their shopping on Amazon, then that should properly be taken into account in the inflation rate in a way it isn’t now.”
The takeaway for shoppers is that it's worth doing some web browsing for big purchases. But even if you shop online, you could still be overpaying. Some websites show different prices for identical searches, based on factors like a user's browsing history, type of computer, and location.
Here's Money's advice about how to outsmart the websites:
Delete your cookies. Retailers use cookies to track you and collect information about your preferences. If you want to see unaltered prices, delete cookies by clearing your browsing history.
Browse privately. The problem with deleting your cookies is that information they contain might also work in your favor—remember that users logged into Orbitz or Cheaptickets sometimes saw lower prices than shoppers who were not logged into the site. So look at products using a “private” window, which will not send the website any information about you. See if the price is higher or lower in that mode. (On Google Chrome, go to “File,” then “Open Incognito Window.”)
Wait. Be inelastic. Put an item in your shopping cart, but don’t buy it. Some online retailers will cut the price to close the deal.
Use tools to price-watch. Try CamelCamelCamel.com, which sends you an alert when the price drops on an Amazon product. When Money tried it, the price of a vacuum fluctuated between $212 and $268 over the course of a month.