Why You Need an Online Shopping VPN to Get the Best Deals

Ever tried shopping for something online and noticed the price had increased when you reloaded the page? Businesses often adjust their online prices based on the location associated with your IP address and other information they have about you. This practice is part of something called “dynamic pricing.” Retailers may also change their prices based on your online behavior and what they think you’ll pay. 

Changing your IP address with a VPN for online shopping can help you find the lowest prices on goods and services. Wondering how that’s possible? This article covers everything you need to know about online shopping and dynamic pricing. We’ll dive into why it happens and how online retailers get your data in the first place. Then we’ll guide you through using a VPN to get lower prices and shop online securely.

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What Is Dynamic Pricing?

Dynamic pricing lets businesses maximize profit without pricing themselves out of the market. The traveling and hospitality industries have been using this strategy for years. Flights and hotel prices vary depending on when you travel and can change quickly while you’re searching. That’s dynamic pricing in action. 

On one hand, it makes complete sense. You’d expect prices to change based on seasonal demand. What’s harder to understand is why prices change based on the device you’re using, the median income in your area, and how often you look at a product online.

It’s not just the travel industry doing this. Some online retailers use price discrimination for everyday products and services, too. Most e-commerce sites use dynamic pricing to show you the most expensive items or prices based on what you’d be willing to pay – at least, according to their calculations based on your data. Since websites collect a lot of data about you, they’re extremely accurate when it comes to pricing products just for you.

Dynamic pricing also goes by quite a few other names, including: 

• Price discrimination
• Price segmentation
• Surge pricing
• Demand pricing

How Does Dynamic Pricing Work?

Dynamic pricing is an online shopping phenomenon. Online stores can automatically and almost instantly adapt the prices they show you when they use dynamic pricing software. This software feeds all available data into an algorithm to predict the highest prices you’d personally be willing to pay. 

Think of dynamic pricing as a seesaw that goes up and down based on who’s on it and what’s happening around it. It uses every bit of data available to continuously modify prices per person. 

Many people think it’s harmless when big tech companies harvest your data. Sadly, losing your privacy isn’t actually harmless – it’s only costing you more as companies use your and other people’s data to maximize their profits. Wondering what kind of data is affecting your wallet? Let’s take a closer look.

1. Supply and Demand Monitoring

You might already know that when lots of people want something, it costs more and when there’s less demand for it, the price goes down. Dynamic pricing software continuously assesses data to determine the demand for a product and adjusts its prices accordingly. It can also predict your behavior based on your past and live data to assess your interest and whether you’d be willing to pay more.

2. Time-Based Price Changes

You might notice the price of a product or service changing depending on when you look at it. Here’s an example: ordering a trip on a ride-hailing service during the morning rush hour will likely cost more than during off-peak hours. This happens because the app developers know you’re probably in a hurry to get to work at that time which means you’re willing to pay more. See how it works?

3. Competition Assessment

Businesses try to ensure their prices are competitive in terms of market value. Ever looked at renting a moving truck and wondered why the prices from different providers are almost exactly the same? It’s not an eerie coincidence. Those companies likely use dynamic pricing to track competitors and adjust their pricing limits accordingly. Companies may lower prices to avoid losing customers to competitors. It can also lead to higher prices if competitors are charging more on average for the same products or services.

4. Location Tracking 

Some websites track your location using your IP address and change the prices you see depending on where you’re buying from. Lower-income countries might get cheaper offers than countries like Monaco, the UK, or Luxembourg. Prices can even vary within the same city or country based on the median income of the people living in that zip code. 

Regional pricing is based on factors like currency strength, shipping costs, and local taxes. Generally speaking, changing your location to bypass regional pricing goes against most websites’ terms of service – and we strongly recommend against breaking their rules. That said, dynamic pricing practices that use your location to increase prices based on other factors, like the average income of homeowners in your ZIP code, aren’t the same thing. 

5. Customer Behavior Analysis

Websites might change the prices you see based on how often you look at an item or what kind of buyer you are. Sites collect detailed information about your demographic (gender, age, income, etc.), browsing habits, and previous purchases. They use this data to generate the highest price they think you’ll accept. They’re essentially looking for the sweet spot between profit and purchase likelihood.

6. Device OS Detection

Believe it or not, the device you use might influence the prices you see. Whether you’re browsing on an iPhone, Android tablet, Mac laptop, or Windows PC, pricing algorithms detect your device’s operating system.

Retailers make assumptions about people based on their devices. For example, people who buy Apple products are often considered to be more likely to be high spenders than people who buy Android or Windows devices. Some studies even suggest that Mac users are often “steered” towards higher-priced hotels – and that this practice is probably not limited to the travel industry. This type of price discrimination isn’t always the case, but it’s a testament to how granular these algorithms can be.

7. Membership Status and Login Data

Your membership status and account information can also influence the prices you get. Many online stores give discounts to loyal customers. When you log in, the store recognizes you as a returning customer and might offer personalized offers based on your data. 

Creating an account might not always work in your favor, though. Logging in means a website can collect more data about you. It can also link other data it collects about you to your account. This makes it easier for the company to track and predict your behavior, which can lead to raised prices instead of discounts.

8. Redirection Pages

Dynamic pricing algorithms track how you get to the page you’re visiting. If you had clicked through a partner site or a special offer page, the prices you get could change. This helps businesses win customers through affiliate marketing.

Companies consider all these factors (and more) to modify the prices you see online. These prices can change quickly, so the deal you see today might be gone tomorrow. The website or app might even warn you that you’re seeing a time-limited offer to encourage you to buy quickly.

VPNs can’t stop websites from tracking you because they use a multitude of built-in trackers and tools to follow you and collect your information. That said, VPNs can help you avoid some of the negative side effects of price discrimination so you can shop for the best prices. Want to know the trick to managing dynamic pricing practices like location tracking and behavior analysis? Use a VPN to mask your IP address with one from another location!

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What Is a VPN and How Does It Work?

VPNs are tools that let you connect to the internet securely. They create an encrypted connection between your device and a VPN server, which serves as a middleman between your device and the internet. This process also masks your real IP address and makes it seem like you’re connecting from the VPN server’s location. That’s because an IP address is a string of identifying numbers that’s registered to a specific region. The combination of VPN encryption and IP masking protects your privacy, enhances your device’s security, and lets you browse as if you’re from that IP location.

Benefits of Using a VPN for Online Shopping

Wait – using a VPN helps you avoid price discrimination? Yes, it does, and much more. Let’s take a look at why you should consider a VPN for online shopping. 

1. Avoid Price Discrimination

VPNs make it harder for websites to track your location and browsing behavior back to you. Companies could still implement region-based price discrimination, but with a VPN, you can use that to your benefit. You can keep changing VPN servers to virtually hop around the world in search of the lowest prices – as long as it’s not against the retailer’s terms of service to shop from overseas. 

Connecting to a VPN server also means you share an IP address with people who are simultaneously connected to the same server. This can “confuse” the algorithm – preventing it from collecting accurate records of your behavior and interests.

It’s worth noting that using a VPN is less effective if you’re logged into your regular account or using your regular browser. Masking your IP address won’t change the fact that browsers and websites collect your data. To get the most out of shopping with a VPN, you can log out of your accounts (or use incognito mode), clear your cache, or use a private browser.

2. Shop Safely on Public Wi-Fi

Public Wi-Fi networks tend to have weaker security protocols. This makes them hotbeds for cybercriminals trying to steal your information. If you’re sharing a network with cybercriminals and they have the right tools, they can easily intercept your device’s traffic and steal your sensitive information. 

Here’s a list of what information is most at risk:

• Card and bank details
• Account passwords
• Email credentials
• Any files, messages, and information you send and receive

Using a VPN for online shopping makes it much, much harder for cybercriminals on your network to intercept your traffic. VPNs encrypt your data against intrusion by changing plaintext format into unreadable streams of code. Even if cybercriminals got hold of your data, they wouldn’t be able to make sense of it. Good VPNs use powerful encryption to protect your private data from prying eyes the moment it leaves your device. 

3. Access Shopping Sites from Abroad

Sometimes online retailers offer exclusive deals to people in specific countries. A VPN helps you look like you’re connected from somewhere else, so when you’re connected to a VPN server in a country where the website is available, it will treat you like any other person browsing from there. This will help you shop local sales at your favorite stores at home while you’re traveling.

4. Access Deals & Coupons from Social Networks

Many social media channels offer location-based deals and coupons. Unless you visit the social platform and use the coupon with an IP address from that location, you won’t get the discount. You can use a VPN to change your IP location to easily access these deals no matter where you are. 

5. Shop Securely on All Your Devices

You might want the ability to shop securely on all your devices. Instead of waiting to get home to use your desktop, you can shop securely with a VPN on your phone. 

A PIA subscription lets you connect unlimited devices at once so you never have to miss an awesome deal. PIA VPN is compatible with Android, iOS, macOS, Linux, and PC. 

What Is the Best VPN for Online Shopping?

VPN providers differ on things like server numbers, privacy policies, server speeds, and more. If you don’t know enough about VPNs, you might not be able to discern between these features while looking for a good shopping VPN. Fear not – we’ll explain the most important VPN features for shopping online.

1. Global Server Network

The first thing you should consider is whether a VPN server network suits your needs. The more servers locations it has, the more places you can virtually visit. When you can use IP addresses from many countries, you can hop around to find the lowest prices and even keep shopping from your favorite retailers when you travel or move. 

A VPN with fewer server locations will limit your options and slow down your connection speeds. A large global server network gives you better flexibility. PIA has high-speed servers in 91 countries, so you can shop like a local from any of these regions. 

2. Automatic Kill Switch

If your VPN disconnects due to sudden drops in your internet connection, it could leave you exposed to online threats. To prevent your data from leaking when you’re back online, choose a VPN with a kill switch. PIA’s kill switch feature automatically stops traffic to and from your device until your VPN is reconnected so you can continue shopping online securely. 

3. Split Tunneling

A split tunneling feature lets you choose which sites and apps to encrypt with your VPN and which to run through your standard connection. It can be useful if you want to keep visiting sites with your local IP address while accessing sites available in a different country. 

For example, imagine you’re planning a trip from Spain to Germany and want to compare flight prices from different locations. You might find lower prices if you’re not searching with a Spanish IP address. With split tunneling, you can simultaneously check airline sites from different countries for a side-by-side comparison.

4. Device Compatibility

You know whether you prefer shopping on your laptop, iPhone, or tablet. If your VPN provider doesn’t have an app for your preferred device, you’ll likely be forced to use a different one. Most VPNs also limit how many devices you can connect at once with a VPN subscription. Choosing a VPN that suits your needs means you can get the most from online shopping on any device. PIA offers unlimited simultaneous connections and our VPN is compatible with all major operating systems.

5. Built-in Ad Blocking

Premium VPNs often offer additional features that help to improve your experience. An ad and tracker blocker, for example, works well with a VPN for online shopping since it also reduces websites’ ability to accurately collect your data. PIA VPN has a built-in ad-blocking feature which reduces ads and trackers. Our MACE feature uses DNS-level ad-blocking so you can browse with fewer ads and intrusive trackers.

How to Get Things Cheaper with a VPN

Shopping with a VPN won’t instantly give you lower prices – it still requires that you put on your detective hat. You’ll need to change your IP address to a different region to compare prices from different places. You may need to try a bunch of different places to see which has the lowest price.

How do you do that? Simply connect to a VPN server in the country whose prices you want to compare. Here’s how to do it on the PIA VPN app. 

1. Subscribe to PIA VPN and install the relevant app for your device.
2. Open the PIA VPN app. 
3. Tap the section that says Current Region. 

4. Choose your preferred region from the list (In this case, I chose France).  

5. Go to the site or app you’re shopping on and shop securely!

How to Stay Safe While Shopping Online

When it comes to staying safe while shopping online, a VPN only gets you so far. It prevents outsiders from snooping on your data by encrypting your connection. However, a VPN can’t protect you against fake sites and scams. For that, you need common sense and caution. Here are a few tips to help you have the safest possible online shopping experience. 

• Connect to a VPN. Always shop with a VPN to protect your financial information – especially on public Wi-Fi.
• Check reviews and trust scores. It’s not always easy to recognize scam websites when you see them. It’s safer to always check reviews and trust scores from sites like Trustpilot before purchasing from a new site.

• Make sure the website is secure. You can see whether a website is secure on Chrome, for example, by clicking on the tune icon on the left side of the URL in the address bar. You’ll see information about its connection security and whether the site has a valid security certificate. 

• Check the URL. If you’re visiting a well-known retailer, ensure the URL is correct. Cybercriminals sometimes create close copycats to trick you into giving up your financial information or buying from their scam sites.
• Use disposable cards. Some banking apps let you create disposable cards for one-time purchases. This helps protect your finances when you’re unsure about a vendor. Even if a fraudulent vendor doesn’t deliver the goods you ordered, they won’t be able to steal more money from your account. Just remember to deactivate or delete disposable cards so they can’t be used again.
• Use credit cards. If disposable cards aren’t an option, credit cards have decent fraud protection which makes them a more secure option for online purchases.
  
• Use strong passwords and multi-factor authentication. If you’re using retail sites like Amazon or Etsy where you need to create an account, make sure to create strong passwords that aren’t easy to guess to protect your financial details. Never share your passwords with anyone. Be sure to also set up multi-factor authentication and enable any other security measures the platform provides.

Secure Shopping with a VPN

Shopping with a VPN keeps your financial information safe and lets you take advantage of lower prices in other countries. 

A good online shopping VPN should offer a large global server network, an automatic kill switch, and IP address management options. These features will help you stay secure and circumvent price discrimination by preventing accidental data leaks and giving you more freedom of choice. 

PIA VPN is an all-around solution for getting better deals online while increasing your privacy and security. Our massive global server network lets you virtually hop between 91+ countries to find the lowest prices for online purchases. You can try it for free for 30 days with our money-back guarantee.

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