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I often purchase items from Amazon even if I could get them cheaper elsewhere. Keep reading to learn why.
When I shop for items online, Amazon is almost always the place where I end up buying them. In some circumstances, I will even opt to purchase an item from Amazon if another website or a local store might have the product for a cheaper price.
While this can mean a little bit of extra money coming out of my checking account, there are four reasons why I opt to use Amazon almost every time — even sometimes at the expense of rock-bottom pricing.
1. To take advantage of free shipping
Free shipping is really important to me — and I’m not alone. In fact, 84% of respondents to a 2019 survey from BigCommerce say they’ve made a purchase with a particular retailer due to free shipping, and 77% have walked away from a purchase because they weren’t satisfied with the shipping options available to them.
The reality is, Amazon’s free shipping often ends up making the product cheaper when total costs are considered — especially given the fact that most items come the same day or the next day at no extra costs. Meanwhile, other retailers might charge a hefty premium for next-day shipping.
When you’re shopping, don’t just look at the product page when deciding if you should opt for Amazon or a different retailer. Add the item to your cart and see how much shipping adds to determine what’s the best deal overall. And if you have to add extra items to your cart with another retailer to make shipping free (and you don’t need those items), then take those costs into account too.
2. I get 5% cash back on Amazon purchases
Another big reason why I sometimes choose Amazon for a purchase even if it is more expensive is because my credit card provides me with 5% cash back for Amazon purchases. This is essentially like getting a 5% discount.
If an item costs slightly less at another retailer but I would only end up getting 1% back, then the Amazon product may actually end up being cheaper in the end.
If you also have cards that offer differing levels of rewards at different retailers, take this into account as well. If you have a RedCard and can save 5% at Target, for example, then an item at Walmart that’s 1% cheaper than Target’s price wouldn’t be as good of a buy for you.
3. The item will come quickly
Amazon’s same day or next day shipping is a huge draw for me, and it is one big reason why I will pay a premium even if an item could be purchased cheaper elsewhere. There are a lot of situations where I realize at the last minute I need something — like when I’m running out of diapers or wipes for my kids or our favorite drink mixes.
Rather than being out of an essential or having to run to the store — thus wasting time and gas — I may pay a premium to purchase something at Amazon. If you also need something quickly, consider whether it’s worth your time and travel expenses to go buy it elsewhere at a lower cost or if you’d be better off paying a dollar or two extra from Amazon.
4. Amazon is convenient
Finally, convenience is the last big reason I’ll sometimes opt to purchase from Amazon even if I have to pay a price premium. Not only can I avoid those last-minute trips to the store, but my Amazon account is set up for one-click purchasing. I don’t have to enter my payment method or shipping info, it’s all there for me.
It’s worth considering how big of a price you’re willing to pay for convenience, though. You may decide it’s worth an extra $1 or $2 not to have to retype all of your information into a new site to buy an item for less money — but probably not worth an extra $5 or $10.
The bottom line is there’s a lot of factors that go into purchasing decisions. So, think about what your priorities are when it comes to shopping — saving money, convenience, speedy delivery, or all of the above. By deciding what’s most important to you, you can make your purchases at the places that make the most sense for your needs and your budget.
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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Christy Bieber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon.com. The Motley Fool has a disclosure policy.