News

Commentary: Why we cant resist splurging on online shopping

SYDNEY: The demand for online shopping has obviously increased since COVID-19 restrictions were put in place.

But less obvious are the subtle psychological drivers behind our collective online shopping splurge.

Advertisement

Advertisement

In fact, online shopping can relieve stress, provide entertainment and offers the reduced “pain” of paying online.

In the last week of April, more than two million parcels a day were delivered across the Australia Post network. This is 90 per cent more than the same time last year.

READ: Commentary: When economies reopen for business but families are reluctant to spend

LISTEN: Repairing and recycling to reduce e-waste: A pipe dream?

Advertisement

Advertisement

More recently, data based on a weekly sample – from May 11 to May 17 – of transactions revealed food delivery increased by 230 per cent, furniture and office goods purchases rose 140 per cent and alcohol and tobacco sales rose 45 per cent.

Meanwhile, weve seen thousands of retail job losses, with Wesfarmers announcing plans on Friday to close up to 75 Target stores around the country, and Myer finally reopening stores after nearly two months of closure.

WHY THE SHOPPING FRENZY?

Online sales of many product categories have increased, including for food, winter clothes and toys. This isnt surprising given people still need to eat, winter is coming and were bored at home.

But beyond the fact most people are spending more time at home, there are a range of psychological factors behind the online shopping upheaval.

Recent months have been stressful due to financial uncertainty, the inability to visit loved ones and changes to our daily routines.

Shopping can be a way to cope with stress. In fact, higher levels of distress have been linked with higher purchase intentions. And this compulsion to buy is often part of an effort to reduce negative emotions.

In other words, shopping is an escape.

(Photo: Unsplash)

A 2013 study compared people living close to the Gaza-Israel border during a period of conflict with those from a central Israeli town that wasnt under duress.

The researchers found those living in the high-stress environment reported a higher degree of “materialism” and a desire to shop to relieve stress.

WHEN MALL TRIPS ARENT AN OPTION

Indeed, in a time when typical forms of entertainment such as restaurants and cinemas are inaccessible, shopping becomes a form of entertainment.

READ: Commentary: Multibillion-dollar wizards – how COVID-19 is exposing whats behind the curtain

READ: Commentary: In COVID-19 captivity, my urge to splurge is over and wont be returning soon

The act of shopping alone produces increased arousal, heightened involvement, perceived freedom, and fantasy fulfilment.

It seems the stress and boredom brought on by this pandemic has intensified our will to spend.

Whats more, psychology research has demonstrated humans inability to delay gratification.

We want things now. Even with stay-at-home orders, we still want new makeup, clothes, shoes, electronics and housewares.

Another pleasant aspect of online shopping is it avoids the typical “pain of paying” experienced during in-person transactions.

Most people dont enjoy parting with their money.

But research has shown the psychological pain produced from spending money depends on the transaction type. The more tangible the transaction, the stronger the pain.

Simply, paying for a product by physically giving cash hurts more than clicking a “buy now” button.

CLEAR BROWSING HISTORY

Interestingly, online shopping also allows high levels of anonymity. While you may have to enter your name, address and card details – no one can see you.

READ: Commentary: China's tensions could boost Hong Kong's stock exchange

Its easier to buy “embarrassing” products when no one is looking. Apart from lockdown restrictions making it more difficult to date, this may also help explain why sex toy sales have surged during the pandemic.

Sales of lingerie and other intimate apparel have also reportedly jumped 400 per cent.

HOW HAVE BUSINESSES RESPONDED?

With advertising spend down, businesses have responded in different ways to recent changes in online shopping.

FILE PHOTO: A sign of China's e-commerce company JD.com is seen at its shop at a mall in Shanghai, China October 26, 2018. REUTERS/Aly Song/File Photo

Many are offering discounts to encourage spending. Last weeks Click Frenzy became a central hub for thousands of deals across dozens of retailers such as Telstra, Target and Dell.

Others have moved operations online for the first time. If you scroll through any major food delivery app, youll see offers from restaurants that previously specialised in dine-in services.

Meanwhile, existing meal Read More – Source