3 Key Signs You Spend Too Much Money on Amazon Purchases
Written by
Cynthia Measom
Edited by
Amber Barkley
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Shopping on Amazon is popular. According to data compiled by Zippia, 7% of Americans who are Prime members buy something on Amazon once a day, while 21% buy something every week.
And it’s no wonder. Amazon sells over 12 million products itself and over 341 million from affiliate sellers — all of which are but a tap or click away, making it all too easy for some consumers to overspend.
Why Do People Get Addicted To Spending on Amazon?
Garrett Smith, financial advisor, CCO and business partner at Ascend Investment Partners, explained the many factors that can make someone spend too much on Amazon, besides its convenience, extensive assortment of products and fast delivery options.
“Additionally, Amazon utilizes advanced recommendation algorithms to tailor the purchasing experience for individual users by analyzing their browsing history and previous purchases,” Smith said. “This encourages customers to explore and purchase additional products. Amazon’s appeal is further enhanced by its competitive pricing, frequent offers and discounts and diverse payment options. Amazon’s services, including Prime Video, Kindle and Audible, not only facilitate purchasing but also foster user engagement, loyalty and recurring usage.”
Key Signs You Spend Too Much on Amazon Purchases
Here are three indications your Amazon purchasing habit is out of control.
Regularly Exceeding Your Budget
If your credit card or bank statement is filled with Amazon purchases every month that you can’t afford, it’s a red flag you’re overspending, according to Smith. Racking up a credit balance you can’t pay or draining your bank account of critical funds can make you feel like you are losing control of your finances.
One way to avoid spending beyond your budget on Amazon is to delete the app from your phone and remove your payment details from your account — make it harder for yourself to buy things, and remind yourself what your savings goals are if you’re still tempted to spend.
Impulsive Spending Behavior
If you find yourself adding items to your Amazon cart that you don’t have a particular need for and don’t give much thought to, you are spending impulsively. Repeated impulsive spending sprees signal that you’re spending too much on Amazon, according to Smith.
One way to reduce your impulse purchases is to implement a waiting period. Instead of placing your order immediately, leave your purchases in your cart overnight and reconsider in the morning. You may find that they don’t seem so important or tempting anymore.
Feelings of Remorse or Anxiety Over Spending Patterns
If you have any regretful feelings or anxiety about the amount of money you’re spending on items from Amazon — either right after purchasing or at some point after you’ve received your items — that’s a key sign you’re spending too much, Smith said.
This is a complex issue, and the reason for your buyer’s remorse will be your own, but consider why you wanted the items to begin with — and the next time you’re tempted by a purchase, stop to think about the “why” before you place the order. If the items in your cart are things you just want, rather than things you really need, put off the purchase and think it over to avoid that regret.
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