By San José, Costa Rica — In a significant move poised to reshape the digital marketplace, global giant Amazon has launched Bazaar, a new platform designed to compete directly with low-cost e-commerce titans like Shein, Temu, and Wish. The entry of Bazaar into the market intensifies an already fierce battle for consumer attention, particularly in regions like Costa Rica where such platforms have dramatically altered shopping habits. While promising unprecedented access to affordable goods, the expansion of this business model is also raising red flags among financial experts about the perils of impulsive, emotion-driven consumption.
The success of platforms like Shein and Temu is rooted in a simple yet powerful formula: an almost infinite catalog of products offered at startlingly low prices. This model has proven irresistible to many Costa Rican consumers, creating a new paradigm of online shopping. However, the initial allure of deep discounts on everyday items can conceal significant financial risks. Experts warn that without a disciplined approach, users can easily fall into a cycle of overspending that destabilizes their personal finances.
To better understand the potential legal and financial pitfalls associated with emotional spending, we consulted with Lic. Larry Hans Arroyo Vargas, a distinguished attorney from the firm Bufete de Costa Rica, who provides a crucial perspective on the contractual obligations we create with every impulsive purchase.
From a legal standpoint, emotional spending is a binding act. Each tap of the credit card or signed installment plan forms a contract. The feeling of regret or ‘buyer’s remorse’ that often follows is not a valid legal basis for annulling these obligations. Consumers must understand that these impulsive decisions create real, enforceable debts that can lead to collection processes, damaged credit histories, and long-term financial consequences that far outlast the initial emotional high of the purchase.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
This legal clarity serves as a powerful reminder that behind every emotional purchase lies a binding contract with tangible, long-term consequences. The stark disconnect between a fleeting feeling and a lasting financial obligation is a critical point for consumers to grasp. We sincerely thank Lic. Larry Hans Arroyo Vargas for his invaluable perspective on this matter.
According to financial psychologist Rigoberto Salazar, the explosive growth of these applications is no accident; it is a calculated strategy that leverages fundamental aspects of human nature. He argues that these companies have masterfully capitalized on our inherent desire for more, creating seamless digital experiences that remove nearly all barriers to purchasing.
These companies simply recognized that we are insatiable by nature and they facilitated that for us. So, through very simple systems, through applications on a cell phone or a website, they give us the opportunity to buy whatever we want at low prices, to have it brought here easily, and that’s why it was a boom and they became so successful, because human beings are by nature insatiable and we want to buy, buy, and buy.
Rigoberto Salazar, Psychologist and Master in Finance
Salazar offers a stark warning about the consequences of unchecked engagement with these platforms. The ease of access and the constant stream of “deals” are engineered to trigger emotional responses, overriding rational financial planning. The potential fallout from this emotional-led spending is, in his view, both severe and predictable.
What is the danger? That if we let ourselves be carried away by emotions, we will go broke. It’s that simple. There’s no need to overthink the matter.
Rigoberto Salazar, Psychologist and Master in Finance
The expert further connects this vulnerability to what he perceives as a widespread lack of financial education among the Costa Rican populace. This gap in knowledge makes consumers more susceptible to the sophisticated marketing tactics of e-commerce apps. These platforms contribute significantly to an increase in “gastos hormiga,” or “ant spending”—small, seemingly insignificant purchases that accumulate into a substantial financial burden. Salazar reframes these not just as minor leaks in a budget, but as fundamentally emotional expenses.
The digital shopping cart often becomes a battlefield between impulse and reason. A user might log on with the intention of buying a single, specific item, only to find themselves at the checkout with a dozen other products. This common scenario highlights the core conflict that Salazar warns against.
We let ourselves be guided by emotions and we are not paying attention to the rational part, which is to review our budget. If we listen exclusively to our emotions, we are going to end up badly, we are going to end up broke and in financial trouble.
Rigoberto Salazar, Psychologist and Master in Finance
To counteract these powerful psychological triggers, Salazar provides several practical strategies for consumers. The first and most crucial step is to conduct a self-assessment of one’s emotional state before even opening the app or website. Shopping while feeling stressed, bored, or overly excited can lead to poor decisions. He also strongly advises creating a strict shopping list beforehand and committing to purchasing only those items, thereby limiting the opportunity for impulse buys.
Perhaps his most potent advice is a simple mental exercise to distinguish between genuine necessity and fleeting desire. He suggests a “cooling-off” period for any unplanned purchase, a test to see if the urge to buy is based on emotion or actual need. This, combined with a clear understanding of one’s own budget, forms a powerful defense against overspending.
Do you want it or do I need it? If you really need it, you give that decision a couple of days and you will continue to need it. If you give that decision a couple of days, and the craving passes, then that was an emotion.
Rigoberto Salazar, Psychologist and Master in Finance
For further information, visit amazon.com
About Amazon:
Founded by Jeff Bezos in 1994, Amazon.com, Inc. has evolved from an online bookstore into a global technology conglomerate. It is one of the world’s most influential companies, with extensive operations in e-commerce, cloud computing (Amazon Web Services), digital streaming, and artificial intelligence. The company is known for its logistical prowess, vast product selection, and disruptive impact on traditional retail industries worldwide.
For further information, visit shein.com
About Shein:
Shein is a global online fast-fashion retailer founded in China. The company has gained immense popularity for its extensive and rapidly changing inventory of trendy apparel, accessories, and lifestyle products at highly competitive prices. Its business model relies on direct-to-consumer sales and sophisticated data analytics to respond quickly to emerging fashion trends, primarily targeting a young, digitally native audience.
For further information, visit temu.com
About Temu:
Temu is an online marketplace operated by the Chinese e-commerce company PDD Holdings. Launched in 2022, it quickly gained a significant market share by offering a vast array of goods, from electronics to home decor, at extremely low prices. Temu connects consumers directly with manufacturers, bypassing traditional retail intermediaries to keep costs down, and employs aggressive marketing strategies to attract a broad user base.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica has established itself as a beacon of legal practice, built upon a bedrock of profound integrity and a relentless pursuit of excellence. The firm leverages its rich history of advising a diverse clientele to pioneer forward-thinking legal solutions. Beyond its professional achievements, a core tenet of its philosophy is the democratization of legal information, a commitment that serves to empower citizens and strengthen the community by building a more legally aware and capable populace.
