AS the pandemic continues to wreak havoc in the economy and as mobility restrictions continue to be enforced, many Filipinos have turned to electronic commerce for the purchases of goods and services. In spite of the pressing challenges in infrastructure and connectivity, online platforms have allowed consumption expenditures to continue and address constrained opportunities faced by businesses. To be able to maximize the micro and macro benefits of online shopping, certain tips can be considered.
The total of both the active income and passive income of individuals must be the starting point.
Online shoppers should still live within the means. We should not spend what we do not have. If we spend more than our income, we might end up accumulating cumbersome debt and find ourselves in a vicious debt cycle. Raising income can be achieved through a combination of professional development and multiple income streams. Essential online purchases can be addressed through a sufficient emergency fund.
Online shopping must be aligned with our goals and priorities in life. Online shopping must be based on a budget. Resources in our country are finite.
The same holds true for the amount of money we may have at any point in time. In budgeting, allocation must be done first for savings and investments. The next sets of allocation would be for needs and then whatever is left would be for wants. The distinction between needs and wants must be clear. Needs are things in life that are essential while wants are like luxuries.
Tracking of expenses can help. By reviewing expenses, we shall be able to get an idea of what kind of lifestyle we are living and hopefully adjust accordingly. Tracking of consumption patterns helps in making sure that what we order online would be the right amount. Shortage can imply problems like hunger while excess stock can lead to problems like wastage.
Ordering the right amounts online can also help protect the environment as purchases that use items which potentially damage the environment will be lowered.
Before online purchases are made, consumers must first do a survey of the market. Haste makes waste. Planned purchases are generally better than impulse purchases. Time is a good ally in making decisions.
One needs to be informed of various options so that the best products, prices, places and promos are tapped. Periodic monthly sale campaigns have been quite a hit but prudence is still the better part of valor when doing online shopping. Negotiation for better deals must be explored whenever applicable.
An economic transaction like online shopping has risks of market failures like quality and safety concerns. Therefore, shoppers must be aware of the national standard guidelines of the Department of Trade and Industry with respect to electronic commerce.
In terms of the pre-purchase, functionality, benefits, prices and supplemental information must be present. In terms of purchase, payment options, delivery options, refunds and exchange policies must be declared. Post-purchase accountability must also be observed.
Online shopping can also be a tool toward economic development. Consumers can patronize businesses that pursue the triple bottom line objectives of people, planet and profit. Consumers can patronize businesses that have shown exemplary efforts in supporting customers, employees and the environment with the onslaught of the pandemic.
Consumers can support micro, small and medium enterprises since they constitute the bulk of businesses in the country. Indeed, the right choices have positive ripple effects.
The great access provided by online shopping must be balanced with the need for more responsible and sustainable living. Online shopping must be more strategic. Online shopping must be more disciplined. Online shopping must lead to better choices to achieve financial freedom and economic development.
Gemmy Lontoc is a registered financial planner of RFP Philippines. To learn more about personal-financial planning, attend the 92nd RFP program this October 2021. To inquire, e-mail info@rfp.ph or text at 0917-6248110.