Gidon Sadovsky, CEO of Overnight Glasses, reveals the checkout tactics retailers use and how to spot them every time.
What’s happening: Online shopping’s convenience comes with a cost many Australians don’t see until checkout. Hidden fees, pre-selected add-ons, and dynamic pricing tactics are quietly inflating shopping bills.
Why this matters: Understanding these tactics helps consumers protect their wallets and make informed purchasing decisions.
Retailers often sneak in optional extras like gift wrapping, extended warranties, or expedited processing by pre-selecting them during checkout.
A recent survey by the Better Business Bureau found that 29% of online shoppers accidentally paid for services they didn’t intend to buy simply by not unchecking pre-filled boxes.
“People often speed through checkout without realizing they’ve agreed to optional add-ons,” said Sadovsky. “These services may only cost a few dollars each, but across multiple orders, they become a consistent source of unnecessary spending.”
The tactic works because consumers have become conditioned to click through checkout screens quickly. Retailers position these add-ons as checked by default, requiring active disengagement rather than active selection. Gift wrapping for $4.95, rush processing for $7.99, or insurance for $3.50 might seem negligible in isolation, but they compound across repeated purchases throughout the year.
Before confirming your order, scroll through the entire checkout page. Look for any pre-ticked boxes or selected options you didn’t explicitly choose. If something is already checked, read what it is before proceeding.
Dynamic pricing exposed
Online prices can change depending on your device, location, or browsing history. This practice is known as dynamic pricing.
“A returning user or someone in a high-income zip code may see higher prices for the same product,” Sadovsky explained. “Dynamic pricing is a subtle but powerful tactic.”
According to research from Northeastern University, prices on major retail sites can fluctuate by as much as 10 to 20% depending on your digital footprint. Retailers use algorithms that track your browsing patterns, previous purchases, device type, and even your geographic location to adjust pricing in real time.
Shopping in incognito or private browsing mode prevents retailers from accessing your browsing history and cookies. This removes one layer of data retailers use to personalise pricing. Additionally, comparing prices across different devices, a laptop versus a mobile phone, can reveal price variations based on device type.
Clear your browser cookies before shopping, or use a VPN to mask your location if you’re comparison shopping across regions. The effort can save significant money, particularly on high value purchases like electronics or travel bookings.
Return fees matter
Many shoppers assume returns are free, but that’s not always the case. Some retailers charge restocking fees or require you to pay for return shipping.
“People assume returns are free, but in many cases, the cost of return shipping or restocking can significantly reduce your refund,” Sadovsky warned.
A report from the National Retail Federation revealed that return related fees cost U.S. consumers over $9 billion annually. Australian consumers face similar challenges, with 26% of shoppers abandoning their carts after discovering additional fees associated with their purchases.
Return policies vary dramatically between retailers. Some offer free returns within 30 days, while others charge restocking fees of 10 to 20% of the purchase price, or require customers to cover return shipping costs that can exceed $15 for standard items.
Before purchasing, locate and read the return policy. Look for specific details about who pays for return shipping, whether restocking fees apply, and what condition items must be in to qualify for full refunds. Screenshot or save the policy if it’s particularly generous, as some retailers have been known to change terms.
Your card already covers it
Retailers often promote extended warranties, but in many cases, they duplicate coverage you already have.
“In many cases, your credit card already provides purchase protection, or the manufacturer’s warranty is sufficient,” Sadovsky noted.
Consumer Reports found that 55% of shoppers who bought extended warranties never used them, and 38% were already covered by another plan. Many credit cards offer automatic purchase protection for 90 to 120 days, covering damage, theft, or defects. Premium cards often extend manufacturer warranties by an additional year at no cost.
Before purchasing an extended warranty, check your credit card benefits. Most card issuers provide detailed benefit guides online, or you can call the number on the back of your card. Compare what the retailer offers against what your card already provides. In most cases, the overlap makes the additional warranty unnecessary.
For electronics and appliances, manufacturer warranties typically cover defects for the first year. Combined with credit card protections, you’re often covered for 18 to 24 months without spending extra money.
Final expert take
“Most hidden fees show up at the very end of the checkout process, so one smart tactic is to simulate a purchase before you actually commit,” Sadovsky advised.
“Add the item to your cart, go through checkout until the final review screen, and take note of any surprise handling fees, shipping costs, or add-ons. Then close the tab and compare it with other retailers offering the same product. You’d be surprised how often the same item is available elsewhere with fewer fees, and this one-minute check can save you real money.”
The tactic works because it forces transparency before commitment. Retailers design checkout flows to minimize friction, which often means hiding fees until the last possible moment. By deliberately pausing before completing the purchase, consumers regain control over the decision and can make informed comparisons.
For Australian shoppers navigating an increasingly complex ecommerce landscape, awareness of these tactics transforms shopping from a passive experience into an active defence of your wallet.
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