Beating Broke

Personal Finance from the Broke Perspective

  • Home
  • About
  • We Recommend
  • Contact
  • Privacy Policy

Powered by Genesis

Oh Amazon: 12 Sneaky Tricks Amazon Is Using To Get More Of Your Money

March 26, 2024 By Catherine Reed 1 Comment

Sneaky Tricks Amazon Is Using To Get More Of Your Money

Amazon, the e-commerce giant, has transformed the way we shop online, offering convenience, variety, and competitive pricing. However, as consumers increasingly turn to Amazon for their shopping needs, it’s crucial to be aware of the subtle tactics the platform employs to encourage spending. Here is a closer look at 12 sneaky tricks Amazon is using to get more of your money, shedding light on the company’s sophisticated strategies and how you can shop smarter.

1. Prime Membership: The Loyalty Hook

Prime Membership

Amazon Prime is a masterclass in customer loyalty programs, offering enticing benefits such as free shipping, exclusive deals, and access to streaming services. However, the annual or monthly fee creates a psychological urge to “get your money’s worth,” driving more frequent purchases and higher spending to justify the membership cost. The convenience and perceived savings can make it easy to overlook the accumulation of purchases over time.

2. “Frequently Bought Together” Recommendations

Frequently Bought Together

The “Frequently Bought Together” feature is more than a helpful suggestion—it’s a clever upselling tactic. By showcasing complementary products, Amazon taps into the consumer’s desire for convenience and completeness, encouraging additional purchases that might not have been initially intended. This strategy not only increases the average order value but also introduces shoppers to items they might not have otherwise considered.

3. The Endless Scroll of Deals

Endless Scroll of Deals

Amazon’s interface is designed for discovery, with endless scrolls of deals and recommendations that keep you engaged and browsing for longer. This endless aisle effect, akin to wandering through a vast, digital storefront, increases the likelihood of impulse purchases as you’re continually exposed to enticing deals and new products.

4. One-Click Ordering

One-Click Ordering

The convenience of one-click ordering is undeniable, but it also makes it dangerously easy to make impulsive purchases without a second thought. The absence of a checkout process removes a crucial pause for consideration, leading to quicker and potentially less deliberate spending decisions.

5. Countdown Timers on Deals

Countdown Timers on Deals

Countdown timers on limited-time deals create a sense of urgency, compelling you to make quick purchasing decisions for fear of missing out. This psychological tactic, known as scarcity marketing, leverages the fear of loss to prompt immediate action, often bypassing more careful consideration of the purchase’s necessity or value.

6. Amazon’s Choice and Best Seller Labels

Amazon's Choice and Best Seller Labels

Labels like “Amazon’s Choice” and “Best Seller” serve as powerful endorsements, guiding consumers toward specific products. While these labels suggest quality and popularity, they can also steer shoppers towards items with higher profit margins for Amazon or those from preferred sellers, subtly influencing purchasing decisions.

7. Subscribe & Save Program

Subscribe & Save Program

The Subscribe & Save program offers convenience and discounts on repeat purchases, but it also locks you into recurring payments. This can lead to overstocking items you don’t need immediately or continuing to buy products out of habit rather than necessity, increasing your overall spending.

8. Dynamic Pricing

Dynamic Pricing

Amazon’s dynamic pricing strategy means that the prices of products can fluctuate based on demand, time of day, and your browsing history. This practice can lead to impulse buying if you notice a price drop, fearing that waiting could mean paying more later.

9. Hidden Costs in “Free Shipping”

Hidden Costs in Free Shipping

While free shipping is a major draw, it’s often contingent on reaching a certain purchase threshold. This can entice you to add more items to your cart than initially planned just to qualify for free shipping, subtly increasing your total spend.

10. Amazon Prime Video and Music Upsells

Amazon Prime Video and Music Upsells

Integrating services like Prime Video and Prime Music into the Prime membership not only adds value but also creates more touchpoints with Amazon’s ecosystem, increasing brand loyalty and the likelihood of making Amazon your default shopping destination.

11. Personalized Advertising

Personalized Advertising

Amazon’s sophisticated use of data analytics allows for highly personalized advertising, both on and off the platform. By presenting tailored ads based on your browsing and purchase history, Amazon keeps products and deals top-of-mind, nudging you towards more purchases.

12. Amazon Credit Card Incentives

Amazon Credit Card Incentives

The Amazon credit card offers attractive rewards and cashback on purchases, encouraging you to use it as your primary payment method. This can lead to more frequent shopping on the platform, driven by the allure of rewards and discounts, potentially increasing your spending.

Watch Out for the Sneaky Tricks Amazon Is Using to Get More of Your Money

Watch Out for the Sneaky Tricks Amazon Is Using to Get More of Your Money

Understanding the sneaky tricks Amazon is using empowers you to shop more mindfully, resist impulsive purchases, and make more informed decisions. Remember, every feature designed for your convenience also serves Amazon’s goal of boosting sales. Shop smarter by recognizing these tricks and keeping your spending in check.

Read More:

Why We Decided to Keep Our Amazon Subscription

Spending Your Money Wisely

Catherine Reed
Catherine Reed

Catherine is a tech-savvy writer who has focused on the personal finance space for more than eight years. She has a Bachelor’s in Information Technology and enjoys showcasing how tech can simplify everyday personal finance tasks like budgeting, spending tracking, and planning for the future. Additionally, she’s explored the ins and outs of the world of side hustles and loves to share what she’s learned along the way. When she’s not working, you can find her relaxing at home in the Pacific Northwest with her two cats or enjoying a cup of coffee at her neighborhood cafe.

Filed Under: ShareMe, Shopping Tagged With: amazon, budgeting, online shopping, sneaky tricks, spending

The Biggest Reason to Always Pay with a Credit Card

March 7, 2022 By MelissaB Leave a Comment

Reason to Always Pay with a Credit Card

Some financial advisors and gurus urge all of their audience to use cash only. They argue if you use cash, you can’t overspend. Further, they say you’re also more conscious of your spending when you use cash. While these arguments may be true for some credit card users, they’re not for all. Many people can use credit cards and stay within their budgets. In addition, paying with credit cards offers several advantages, one of which is particularly important.

The Biggest Reason to Always Pay with Credit Card

The biggest reason to always pay with a credit card is the purchase protection. I saw this in effect recently with my mom and a $450 treadmill she purchased last fall.

The Credit Card Purchase

My mom is trying to improve her fitness level, so last September, she bought a treadmill on Amazon. The treadmill was never perfect—she complained about how hard it was to walk on it. When I visited her recently, I tried the treadmill, and it felt heavy and slow. A few days into my visit, the treadmill would turn on and off, but you couldn’t get the tread to move.

Customer Service Was a Bust

We discovered the treadmill company is in China, and the only phone number for support was a Chinese number. I emailed support and told them what the problem was. The company took two days to get back to me and then asked for a video demonstrating the problem. I sent that and then waited another two days for a reply. Next, they told me how to disassemble part of the treadmill and send them more videos showing the problem. I did, and then I didn’t get a reply for several days.

Contacting Amazon Didn’t Help

Meanwhile, I contacted Amazon to ask for a refund. Amazon said they couldn’t help me because the return window closed in December. When I mentioned that the treadmill had a one-year warranty, Amazon said I had to work with the manufacturer.

Customer Service Still Refused to Help

Reasons to Always Pay with a Credit Card

By now, I had been going back and forth with the treadmill company’s customer service for approximately 10 days. Finally, I said I wanted a refund as the treadmill was under warranty and shouldn’t break after five months of ownership. The company told me to contact Amazon to activate the warranty, which I had already done, to no avail.

Contacting the Credit Card Company Made the Difference

I then contacted the credit card company and explained what had happened. After taking down all the details, the credit card company issued my mom a full refund. Having the ability to go straight to the credit card company to get a refund when all else fails is the biggest reason to always pay with a credit card.

Final Thoughts

My opinion to always pay with a credit card, especially with large purchases, was reaffirmed with this situation. Further, I learned that when purchasing something on Amazon, checking out reviews is not enough. I must also verify where the company is based. A company based in China may be challenging to work with and receive assistance.

We used my mom’s credit card refund to purchase a new treadmill from a company based in Arkansas. If she has trouble in the future, I’m confident communicating with the company will be easier.

Read More

How to Pay Down Your Credit Card Faster Even If You Don’t Have Extra Money

Help Your College Student by Adding Them as an Authorized User to Your Credit Card

Is It Worthwhile to Still Use Credit Cards with So Many Data Breaches?

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: General Finance Tagged With: amazon, cash, credit card, customer service, warranties

5 Ways to Save on an Amazon Prime Membership

December 21, 2020 By MelissaB 1 Comment

save on an Amazon Prime membership

An Amazon Prime membership offers a number of perks such as free Amazon shipping, free movies and music, a discount at Whole Foods, and many more.  However, some people balk  at the $119 annual membership fee, which is understandable.  If you’d like to have an Amazon Prime membership but want to save money, there are a number of possibilities.

Split an Amazon Prime Membership

If there’s another adult family member that you’d like to split Amazon Prime with, you can.  And no, this isn’t like sneaking another family member into a hotel without telling the hotel staff.  Amazon has a whole page dedicated to how to split a membership, which they call Amazon Household.

how to s

Say your mother-in-law lives with you.  You’ll share a membership, each putting in a payment method to pay your portion, and you will have separate accounts.  If you can do this, you’ll automatically pay just half–$59.50 instead of the full price of $119.

Get a Student Discount

If you’re a college student with an .edu email address, you can get a discounted Amazon Prime membership by signing up for an Amazon Prime Student account.  The first 6 months are free, and then you’re charged $6.49 per month (equaling $79 per year, a $40 a year savings from traditional Prime)

EBT & Medicaid Discount

If you receive EBT benefits or Medicaid, you’re eligible for a special Amazon Prime membership for just $5.99/month.  You’ll need to verify that you actually receive benefits, and every 12 months, you’ll need to verify that you’re still eligible for this type of membership.  You are allowed this special rate for 48 months.

Credit Card with Prime as a Perk

save on Amazon Prime membership

Some credit cards offer an Amazon Prime membership, or a discount on the membership, as a perk.  For instance, the Uber Visa Card by Barclay offers $50 off an Amazon Prime membership after you spend $5,000 on the card each year.  This will take the Prime membership down to $69.

Likewise, the Amazon Business Prime American Express Card offers a $125 Amazon.com gift card when you’re approved for the card.

Amazon Prime Discount

Amazon Prime rarely offers discounts, but once a year, you can usually find them.  They may offer the deal in July during Amazon Prime Day, or when they have new shows to debut, or their shows, like Mozart in the Jungle, win awards.  You’ll just need to keep a close eye on Amazon to snag the discount when it’s available.

If none of these discounts applies to you or you just don’t want to spend the money, keep in mind, you’ll get free shipping from Amazon if your order is over $25, and you can always get a 30-day free trial membership should you want to binge watch a show or order a number of items, say around Christmas time.

Do you currently have an Amazon Prime membership?  If so, do you use one of the above strategies or another one to avoid paying full price?  Do you think Amazon Prime is worth paying the full price?

Read More

Is It Worth Paying for an Amazon Prime Membership?

5 Ways to Save on Utilities and Amazon

Free Alternatives to Things You Currently Pay For

 

MelissaB
MelissaB

Melissa is a writer and virtual assistant. She earned her Master’s from Southern Illinois University, and her Bachelor’s in English from the University of Michigan. When she’s not working, you can find her homeschooling her kids, reading a good book, or cooking. She resides in New York, where she loves the natural beauty of the area.

www.momsplans.com/

Filed Under: Frugality, Saving Tagged With: amazon, Amazon Prime membership, discounts, subscriptions

  • Facebook
  • Pinterest
  • RSS
  • Twitter

Improve Your Credit Score

Money Blogs

  • Celebrating Financial Freedom
  • Christian PF
  • Dual Income No Kids
  • Financial Panther
  • Gajizmo.com
  • Lazy Man and Money
  • Make Money Your Way
  • Money Talks News
  • My Personal Finance Journey
  • Personal Profitability
  • PF Blogs
  • Reach Financial Independence
  • So Over Debt
  • The Savvy Scot
  • Yes, I am Cheap

Categories

Disclaimer

Please note that Beating Broke has financial relationships with some of the merchants mentioned here. Beating Broke may be compensated if consumers choose to utilize the links located throughout the content on this site and generate sales for the said merchant.

Visit Our Advertisers

Need to change careers? Consider an Accounting Certificate Program from WTI.