Wolt and "duty-free" promotions: Why you should check prices before buying
How many times have you seen a "sale" label and assumed it was the lowest price available? We analyzed Wolt's "duty-free" home product offers and found that in many cases, the same items are available elsewhere for significantly less, despite the 18% VAT exemption.
How many times have you seen the word "sale" and immediately assumed it was a price that couldn't be found lower? We have now found an example that illustrates why it is worth stopping for a moment before clicking "add to cart". Wolt offers home products in the app under the heading "duty-free", meaning without the 18% VAT, but a check we conducted reveals that in some cases the exact same products are sold elsewhere at significantly lower prices.
The problem is not just the price itself, but the impression created. The consumer sees a "duty-free" label, sees the savings on VAT, and might understand that they are getting a special deal here. However, in practice, when comparing the price to market prices, the picture can be reversed.
For example, the Aero Straight hair styler by Dreame is offered on Wolt for 1,390 shekels. Apparently, this is a "duty-free" price. However, in a check we conducted, we found the exact same product online for 1,099 shekels, 291 shekels less, meaning a gap of about 21%. In Eilat, the price we found is even lower and stands at 931 shekels. Even after factoring in operating fees, the cost on Wolt reaches 1,395 shekels, still significantly higher than the price we found elsewhere.
Another product we checked is the cordless wet and dry vacuum cleaner Dreame H15 Mix. On Wolt, it is sold for 3,590 shekels as part of the promotion. However, in our check, the exact same product was found for 2,999 shekels. The gap: 591 shekels, or about 16.5% more.
Another product with gaps that are cheaper on the market without "duty-free" promotions, the Smarter D05-01 dehumidifier, is sold on Wolt for 599 shekels, while at Super-Pharm Online we found it for 549 shekels. Here we are talking about a gap of 50 shekels, about 8% cheaper.
In other words, despite the "duty-free" heading and despite the theoretical savings of 18% VAT, the final price does not necessarily beat the prices that already exist in the market. The "duty-free" branding creates a feeling that it is a good deal, even when the actual comparison tells a different story.
It is important to emphasize that in our check, the products tested include a warranty from Crystalino, the official importer of Dreame in Israel, as well as free shipping. Therefore, this is a comparison of identical products and purchase conditions.
Ultimately, not everything that looks like a sale is really an opportunity. The word "duty-free", a discount icon, or a calculation of 18% less VAT should not be a substitute for price comparison. Before you are tempted by a price presented as special, it is worth opening one or two more sites and checking how much the same product costs there.
