I became an adult just as online shopping became a major industry. Bolstered by such outlets as Amazon.com and eBay.com, the digital marketplace has expanded exponentially in the last 15 years (Amazon.com was founded in 1994, eBay.com in 1995). In 2008, Amazon.com brought in over $19 billion in revenue; eBay.com brought in over $8.5 billion. While those numbers still trail traditional brick and mortar establishments – Target, for instance, brought in nearly $65 billion in revenue in 2008 from both their online and brick and mortar stores – those companies and other like them are still heavy hitters, and their forecast remains very positive.

Looking at those numbers made me think about what I buy online. Looking at my order history from such sites as Amazon.com and Newegg.com, I bought everything from books and hard drives to a GPS, a camera and even a kitchen knife set. In total, for the year 2009 I spent $1,335.98. That number was a bit hard to type, but when I look back, all of my major purchases were made online. And that doesn’t even count airline tickets or hotel reservations. So if I’m willing to buy books for school, home electronics and Christmas gifts, what am I not willing to buy online?
  • Engagement Ring – Although I didn’t purchase the ring in 2009, I did briefly consider that option when I did make the purchase. I think this rule extends to most jewelry. This isn’t for a lack of reputable online shops, but if I’m going to buy something along those lines I’d like to see it in person first.
  • Most Clothes – T-shirts are the exception to this rule, but if I have to buy clothes, I’d at least like to try them on first to see how they feel and fit. Some things can’t be reproduced online it seems.
  • Furniture – For pretty much the same reasons as clothes. There’s only so much that a picture can do for you.
  • Special Products – For example, I would never buy a new guitar online; I need to hold it, feel its weight and hear how it sounds.
While I was making this list, it struck me that the primary reason why I wouldn’t buy a certain product online was not due to a lack of faith in online retailers, or a lack of availability. Instead, it was because each product required some sort of tactile feedback that is meaningless for other products (I don’t care how a GPS “feels” in my hands). Will technology one day break down that barrier? First instinct says no, but then again, it wasn’t long ago that the idea of doing something like instantaneously sharing a document with someone across the world would be considered ridiculous. So who knows. Readers: is there anything you wouldn’t buy online?
Michael
Twitter: @michael_dink

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3) Watch the numbers. Get a budget, monitor your spending and track your net worth.

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