5 Ways Your Amazon Spending Impacts Your Finances and 5 Ways You Can Save

Amazon may have revolutionized the way you shop, but does convenience cost you more when it comes to saving money? Your attention should be drawn as an Amazon shopper to the purchases you make significantly impacting your finances. Below are six ways your Amazon spending might be affecting your wallet and some practical tips to help you save .

Looking to further offset your Amazon spending? Buy these items at the Dollar Tree and resell them on Amazon.

Check Out: 6 Things the Middle Class Should Sell To Build Their Savings

Try This: 7 Reasons You Should Consider a Financial Advisor — Even If You’re Not Wealthy

You Shop Out of Boredom

If you find yourself aimlessly scrolling through Amazon, pause and put your phone or computer away before you buy something you don’t need. And if that doesn’t work, take a look at your bank account and see just how much money is actually being spent trying to fill a void of ennui.

“Many people fall into the trap of impulse shopping on Amazon when they browse without purpose or when trying to kill time or when they’re bored,” said Andrea Woroch , consumer and money-saving expert. “Even small purchases add up when you’re buying without thought or consideration regularly.”

Read More: 5 Unnecessary Bills You Should Stop Paying in 2024

GOBankingRates Tip: Impulse Purchases Add Up So Wait and Save

Amazon’s shopping makes it easy to make impulse buys. Those small, seemingly insignificant purchases can accumulate over time, leading to substantial spending so create a waiting period rule. If you find something you want to buy, put it in your cart and wait a week before purchasing as cooling-off period can help you determine if you really need the item.

Prime Membership Weighs You Down

Prime is the exclusive club membership where you can get discounts and deals, as well as take advantage of sales on Prime Day. Of course, it does come at an annual cost.

“This is going to sound crazy, but you can potentially cut your Amazon spending by canceling your Prime membership,” said Todd Stearn, founder and CEO of The Money Manual . “The average American Amazon Prime member spends $110 on Amazon each month, according to a 2023 survey by Upgraded Points. Compare this to the average of $38 per month for non-members.”

GOBankingRates Tip: Skip Subscription Services

Amazon offers various subscription services such as Amazon Prime, Audible and Kindle Unlimited. While these services provide value, they also require recurring payments that can add up so be sure to review regularly and cancel any that you are not using frequently. Consider whether the benefits of services like Amazon Prime outweigh the cost based on your usage.

You Click ‘Buy’ Without Checking Your Total

Sometimes it’s hard to tell whether an item is something you really need when you’re caught up in the moment. Take the time to see what your final cart’s adding up to be — with shipping, taxes and other fees, it might be more than you think.

“Walk away from the potential purchase to give yourself some time to think it over,” Woroch said. “When you’re shopping online or via your mobile device, add the item to your cart but then click out of the browser or app for a few moments. If it’s an unnecessary item, chances are the urge to buy it will pass and you will dodge that impulse purchase.”

GOBankingRates Tip: Don’t Overlook Small Purchases

Small purchases, such as household items or digital downloads, often go unnoticed. However, these minor expenses can add up over time and affect your overall budget. You can track all your expenses by using budgeting apps to keep an eye on your spending habits and identify areas where you can cut back.

Auto Deliveries Are Never on Pause

“The ‘Subscribe & Save’ feature offering 5% [savings] on purchases is a nice benefit for Amazon Prime members, but it also leads to overspending and can cost you more in the long run,” Woroch said. “First of all, the 5% savings may still not be cheaper than if you shopped around.”

Retailers like Target and Walmart now offer free curbside pickup or free delivery with a minimum order amount, so it might be just as convenient to order from them and they might have the same item you want for cheaper than Amazon. In addition, you might be getting unnecessary automatic deliveries.

“When you set up the ‘Subscribe & save,’ it’s set up on auto delivery,” Woroch said. “And most people don’t manage the frequency for their deliveries or end up setting up auto delivery on items they really don’t need, which ends up being a waste of money in the long run.”

GOBankingRates Tip: Calculate Convenience Over Cost

Amazon’s convenience can sometimes lead to paying higher prices for the sake of getting items delivered quickly. You might end up spending more than you would if you took the time to compare prices. Just because you’re online doesn’t mean you can’t shop around for the best deals.

You Go Over Your Monthly Limit on Your Amazon Spending

You do it for other bills, from your groceries to your rent. So why not plan and calculate Amazon spending just as you would any other line item in your monthly budget?

One hack that can help you stick to your allotted monthly amount is to load an Amazon gift card each month with the amount you’ve budgeted — once that gift card is empty, don’t buy anything else on Amazon until you reload at the beginning of the next month.

GOBankingRates Tip: Your Credit Is Too Good Here

It’s easy to charge your Amazon purchases to a credit card and lose track of your spending. High-interest rates on credit card debt can significantly impact your financial health. Simply set a monthly budget for your Amazon spending and stick to it to better track all of your transactions.

5 Ways To Save on Amazon

The bottom line is that other than sticking to your saving and budgetary goals, there are specific ways you can save on Amazon if you wish to continue to shop with the mega-retailer. By being mindful of your spending habits and utilizing these five savings tips, you can enjoy the convenience of Amazon without compromising your financial health.

1. Subscribe & Save: Take advantage of Amazon’s “Subscribe & Save” program to get discounts on regularly purchased items. Set up subscriptions for household staples and enjoy savings of up to 15%.
2. Amazon Warehouse Deals: Check out Amazon Warehouse for discounts on open-box and refurbished items. These products are often significantly cheaper and come with the same return policy as new items.
3. Use Amazon Coupons: Regularly check Amazon’s coupons page for discounts on a variety of products. Clip the coupons and apply them at checkout to save on your purchases.
4. Join Amazon Family: If you have young children, consider joining Amazon Family. Members receive discounts on baby products, including diapers and baby food and exclusive family-oriented offers.
5. Amazon Gift Cards: Purchase discounted Amazon gift cards from reputable third-party sites. Use these cards to pay for your Amazon purchases and enjoy instant savings.

Caitlyn Moorhead and Jake Arky contributed to the reporting of this article.

This article originally appeared on GOBankingRates.com : 5 Ways Your Amazon Spending Impacts Your Finances and 5 Ways You Can Save