Avoiding sharks on the net

16 October 2007

Getting the most from online shopping means following a few important rules

Canny shoppers are finding the net is a great way to find bargains. But there are some downsides, because of the relative anonymity of the Internet it's possible for anybody to claim to be a business. The NSW Department of Fair Trading recently warned about disappointed shoppers after receiving 1,500 complaints this year about online sales.

If you are buying on the Internet, we recommend doing the following;

• Shop around properly. Compare total prices and be aware of the price at your local shops.
• Make sure you are comparing the same thing, check those model numbers closely. Charles Wright of the Bleeding Edge column had a story of one poor shopper who'd bidded big on the wrong handheld computer.
• Allow for shipping costs.
• If you buy at auction, decide on a price and stick to it.
• Remember that buying from overseas increases shipping costs, delivery times and the difficulty of resolving any disputes. You might also find you are liable for GST or duty on imported goods.
• Overseas products might be different to the local model. Check things like warranties, voltages and built in languages. On items like printers it might be difficult to get replacement consumables.
• Always buy from a business with physical address and phone number.
• Research the company you are buying from. Google their name(s) to see if anyone has had problems with them before. If you are using an online service like eBay, check their ratings.
• Google the business's address. If it appears a lot of businesses share the same address, you can be sure the company operates from a serviced office. This is not a good sign.
• Use a credit card to pay so that you are protected if a dispute does arise.
• Remember that if a price is too good to be true, then it probably isn't true.

Online shopping can be great fun and gives you the opportunity to shop all over the world without leaving your lounge room. By being a little careful, you can avoid the traps.

The Department of Fair Trading has tips on how to avoid the sharks on their website.