Black Friday Sale: 5 shopping traps to avoid

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Black Friday, the shopping extravaganza that promises unbeatable deals and discounts, is now live and continues for this weekend.

Amazon, BigBasket, Flipkart, Croma and others have lined up attractive deals, cashback offers and hefty discounts.

But, amidst the excitement and frenzy, buyers need to exercise caution and be aware of the potential pitfalls.

While the prospect of snagging incredible bargains can be thrilling, it's crucial to remember that retailers often employ tactics to influence purchasing decisions.

From cleverly crafted ads to scarcity tactics, buyers must be vigilant to avoid falling prey to these marketing ploys. We'll delve into the common mistakes to avoid during Black Friday sales.

Here are five shopping traps to avoid.

Don't fall for common pressure tactics such as limited time offers, countdown timers, limited stock warnings, gift offers with conditions, scarcity messages such as last chance and social proof below the product (e.g., "X users bought this").

The e-commerce websites also offer time-sensitive coupons, flash sales and early bird discounts for new product launches. These are tactics to create a false sense of urgency.

“Buyers must resist pressure tactics by setting a shopping budget and sticking to it, ignoring limited time offers, avoiding impulse buying decisions, not falling for fake scarcity and doing extensive research about products,” says Harshil Morjaria, a certified financial planner at ValueCurve Financial Solutions.

To lure customers, some e-commerce websites employ a clever tactic. They first inflate prices and then offer massive discounts. In reality, prices may be identical to those around three months before the offer.

“Before snapping up a sale deal, do your homework. Track prices beforehand to verify the discount's authenticity. To top it all, compare prices across multiple e-commerce platforms," says Adhil Shetty, Chief Executive Officer (CEO), BankBazaar.

Online retailers often offer substantial discounts of up to 70 per cent on consumer electronics and outdated clothing lines. These massive discounts could either be on old models or product lines that the retailer wants to get rid of. Don't sacrifice quality for the sake of discounts. Check out product details closely.  “Read at least 10-15 customers reviews, manufacturer's warranty and support,” says Nisreen Mamaji, founder, MoneyWorks Financial Services, a financial advisory firm. She advises that a customer should also look for attributes like a product’s originality, whether it is an outdated product or a recent launch.

E-commerce websites and retailers roll out enticing deals during festivals to capture customer attention. Popular offers include Buy 2 and Get 1 Free, cashback rewards on partner banks credit and debit cards, bundled freebies with big-ticket electronics.

Before you shop you need to scrutinise these offers. “You must read terms and conditions, calculate overall savings and verify cashback and freebie terms,” says Shetty.

Cashbacks can be enticing but beware of hidden limitations. For instance, the cashback advertised by an e-commerce website will be 10 percent by using a partnered bank credit card for shopping, but the maximum cashback may be limited to Rs 2,000. So, if you spend Rs 20,000, you get a 10 per cent cashback (Rs 2,000), but if you spend Rs 40,000, effective cashback is only 5 per cent (since there is cap on cashback at Rs 2,000). Spend wisely after doing some calculation. Don't overspend for misleading cashbacks.

“Bundled gifts with purchases can be deceiving," warns Shetty. "If they're unnecessary or compromise your discount, they're essentially worthless," he adds.

Watch out for additional charges, such as shipping and handling fees, delivery charges, convenience fees, payment processing fees, return and restocking fees, exchange rate fees (for international transactions), etc. Paying these fees can negate discounts so keep an eye on such hidden fees being charged by e-commerce websites.

You can check for details of these fees on product description pages, checkout pages, under terms and conditions of e-commerce website and payment gateways. You can avoid unnecessary services such as insurance on consumer electronics, unless these are genuinely high-value purchases that can cause financial losses to you if lost or damaged.

Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd that publishes Moneycontrol.com.