General Savings
08.01.2025 By Amy Miller, AFC

Shopping Online? Here’s How to Protect Your Wallet and Your Well-Being

Online shopping has become a way of life for many of us. It's quick, convenient, and often feels like the best way to score a deal.

Online shopping has become a way of life for many of us. It's quick, convenient, and often feels like the best way to score a deal. But behind the ease and speed of those online purchases is a growing concern: unsafe and non-compliant products making their way into our homes, especially through third-party sellers on online marketplaces.

To help unpack what this means for consumers, we invited Courtney Griffin, Director of Consumer Product Safety at the Consumer Federation of America, to join us on the Think Like A Saver podcast. Courtney shared highlights from her latest report, Unsafe and Online which sheds light on the risks and realities of online shopping today.

We truly believe that protecting your money goes beyond budgeting and saving: it’s also about making informed, safe spending decisions. That’s why we’re breaking down the key takeaways from Courtney’s findings and offering practical, actionable tips to help you shop smarter, avoid scams, and stay financially safe.

The Hidden Risk of Online Marketplaces

According to the report, online marketplaces are increasingly used by third-party sellers to distribute products that may be unsafe, counterfeit, or don’t meet U.S. safety standards. And here’s the tricky part: Many of us don’t even realize we’re buying from a third party.

Some of the most concerning products flagged in the report include:

  • Children’s toys and baby gear that exceed lead limits or violate federal safety standards
  • Smoke detectors and carbon monoxide alarms that fail to function properly
  • Counterfeit bike helmets and lithium-ion batteries that pose fire and injury risks
  • Cosmetics and electronics with missing or fake certification marks

For savers, these risks aren’t just about safety. Replacing faulty or unsafe products can lead to unexpected costs that disrupt your budget and savings goals.

How to Shop Smarter and Safer Online

Here are some practical ways to protect yourself and your money when shopping online:

Know Who You're Buying From

  • Look at the seller's name. If it’s unfamiliar or seems suspicious, do some research.
  • Don’t assume that just because you're on a trusted site, you're buying from that site. “Sold by” and “Fulfilled by” are not the same.

Watch for Red Flags

  • Prices that seem too good to be true often are.
  • Poor grammar, inconsistent photos, or vague product descriptions can indicate low-quality or counterfeit goods.
  • Be cautious of urgency tactics like countdown clocks or “only 2 left!” alerts that push you to buy fast.

Protect Your Budget

  • Use tools like price trackers to ensure you're getting a true deal.
  • Try “cart therapy” — add items to your cart but wait 24 hours before purchasing.
  • Stick to a shopping list and allocate a specific budget for non-essential spending.

Prioritize Safety

If a product…

  • Touches your child
  • Goes in your mouth
  • Is meant for safety (like helmets or fire alarms)
  • Can overheat or explode (like batteries)
    …make sure it has genuine safety certifications and is from a reputable seller or brand.

The Financial Impact of a Bad Buy

When your budget is tight, it’s tempting to go for the cheapest option — but if that item is unsafe, defective, or needs replacing soon after, it can end up costing more in the long run.

Unsafe products can:

  • Cause injury or damage
  • Need frequent replacement
  • Waste your hard-earned money

A Saver's Mindset for Online Shopping

Being a smart shopper is a key part of being a wise saver. It’s not about avoiding purchases altogether, but more about slowing down, doing your research, and making informed choices.

Before you click “buy now”, ask:

  • Do I need this?
  • Can I trust the seller?
  • Is the product safe and compliant?

And remember, every dollar you don’t waste is a dollar you can save toward your goals.

Want to Learn More?

Read the full report on unsafe and non-compliant products in online marketplaces:
Unsafe and Non-Compliant Products on Online Marketplaces (PDF)

 

Let’s Talk About It!

Have you ever had a bad online shopping experience? Share your story with us using #ThinkLikeASaver and tag @AmericaSaves. Let’s learn and save together.

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