Pandemic store changes fueled impulse purchases
Certainly, the pandemic has changed the way people spend money.
“Consumers abandoned ingrained shopping habits, driving e-commerce into a hyperdrive,” according to an analysis by McKinsey & Company.
Americans spend more on clothing, travel and experiences, the report said, and are now conditioned “to believe they can get what they want, whenever they want.”
But that also makes shoppers more prone to impulse purchases.
Another recent report from online lender SoFi found that 56% of consumers said more than half of their online purchases are spontaneous, driven largely by changing habits after Covid and the rise of buy now, pay later, which along with the general trend increase in online shopping.
BNPL, social media and drunken shopping are budget busters
Several studies show that BNPL has played a role in: encourage consumers to spend more than they can afford on impulse purchases.
According to a report from LendingTree, nearly half of buyers said they wouldn’t have made the same purchase if they didn’t have the ability to finance.
Sites such as TikTok, Instagram and Facebook also provide impulse purchases.
fast online shopping
Jelena Lalic | Istock | Getty Images
About half of social media users made an impulse purchase because of something they saw in their feed, Bankrate recently discovered. In the SoFi survey, as many as three quarters of consumers said they bought something they saw on social media.
It’s not just the allure of celebrities like the Kardashians anymore: seeing influencers and even friends, posting at restaurants, on vacation or shopping creates a “keep up with the Joneses” mentality that’s hard to resist. is.
Nearly 40% of young adults said they spend more of their money on experiences than on necessities like paying bills, in part because they want to share it on social media, according to a separate report from Credit Karma.
Two friends with cotton candy taking pictures against the Ferris wheel
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The surge in spending through social media platforms has also led to an increase in shopping, though not quite sober.
With more consumers online 24 hours a day, more than half of adults, or 53%, admit to having shopped drunk, according to SoFi.
The most popular post-cocktail purchase: clothing, based on social media posts about drunken shopping online. Amazon was by far the most mentioned retailer.
Living with regret
The buyer’s remorse is not new. Under these circumstances, however, it is more pervasive than ever.
Of those who have used installment payment plans, 22% regret their decision, according to a survey by DebtHammer.org.
Based on Bankrate’s report, 64% of shoppers said they regret at least one purchase they made because of social media.
And when it comes to drunk shopping, a whopping 65% of respondents said they forgot to order an item until it arrived at their doorstep, according to SoFi.
Meanwhile, total credit card debt has plunged to $890 billion, just below its 2019 record high. Allen Amadin, president and CEO of American Consumer Credit Counseling, offers these tips for curbing spending and paying off debt.
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