Net bargains put NZ retailers to shame

By CHRIS BARTON

When it comes to getting a bargain, our retailers are badly underestimating the resourcefulness of the Kiwi buyer and the power of the internet.

Since my column last week about the appallingly high prices of consumer electronics here, I've been deluged with email which shows our retailers are missing out on a lot of sales.

Many of the emails talked about the shopping savings made when travelling overseas, but a large number are making savings from the comfort of their keyboard.

While consumer electronics - in particular digital cameras - was the most common product category, whopping savings don't stop there. Readers reported Weber BBQs, Italian bicycles, PC and Mac servers, Chrysler car parts, telescopes, Mac notebooks, DJ decks and even a made-in-New Zealand Navman Chartplotter could be bought overseas or via the net at savings of between 40 and 60 per cent.

Incidentally, I may have confused some readers last week when I said Kiwi consumers were paying 40 to 60 per cent more than their American counterparts.

What I meant was that New Zealand consumers could buy products overseas for 40 to 60 per cent less than they pay in New Zealand.

In actual fact my misstatement was being kind to New Zealand retailers because based on the examples I used last week consumers here are paying between 69 and 141 per cent more than their American counterparts.

But as many have pointed out, it's not an entirely accurate comparison because the examples didn't factor in things such as shipping costs and GST. So this week, using some real examples sent to me by readers who have bought via the internet, I have made more accurate comparisons.

The internet price quoted in the accompanying table is the landed cost in New Zealand and includes shipping costs and GST which is sometimes applied to goods when you import them.

The results are still shocking. In these examples, our local prices are on average 50 per cent more than buying via the net.

For more information on what and when customs hits you with GST or duty go to NZ Customs website.

Shipping costs vary wildly too. You can get an idea of charges at the US postal service website. It's also worth having a look at Toship.

Bruce's example in the accompanying table was through one of the stores on ebay.co.nz. He advises to use the search facility under ebay.co.nz and check the "available to New Zealand" button.

Shane's example is used because although the saving isn't as high as the others, it enabled him to get the product three months ahead of its release in New Zealand - another benefit cited as a reason to buy overseas.

Charles' example shows how the savvy buyer saves on sometimes exorbitant shipping costs by bundling several items to together in the one order. He also had to fax a copy of his passport and credit card to the store.

Readers had lots of useful advice for internet shoppers.

Ryan, who lives in the United States, says it is all too easy to look around websites using pricescan or mysimon and get a false impression of the "real" prices that are available to the consumer.

He says most Americans buy from local retail stores where they do not find the same bargains and have sales tax to pay on top of all listed prices: "Typically, the cheapest prices you find online are from less than reputable suppliers or mail order suppliers. Some of these products are 'grey' imports (parallel imports without US warranties) and provided you are buying from another state you do not pay sales tax."

His advice is that it's better to save 20 per cent off New Zealand prices and be happy with the supplier than 40 per cent off and have all kinds of headaches.

Which sites are the best? Readers gave numerous examples with many saying Cnet with its product reviews and price comparisons was a good place to start.

Ebay stores such as Cameta were also popular. Others used by New Zealand buyers include CDW; Minidisco.com; Mp3factorydirect; Outpost.com; Hardwarezone (for Singapore prices) and Provantage.

Besides not being able to see and touch the goods before you buy, other concerns about buying overseas were the difference in power supplies between the United States and here and whether electrical goods had international warranties.

Most buyers said many American power adaptors were fine, plugging straight into New Zealand plugs with a plug adaptor.

But you do need to check that the gear you buy will automatically switch between 110 and 240 volts.

International warranties appear a little more complicated. Some brands have them and some don't - although information on the subject is often conflicting. Canon in New Zealand for example says buyers can't get international warranties on its digital cameras. But a reader who bought a Canon product from the US says his international warranty card specifically includes both New Zealand and Australia.

In the examples used here buying over the net means an average saving of 33 per cent - and that's after adding exorbitant shipping charges and GST. Something is very wrong.

* Email Chris Barton

NZ Customs Charges

US postal service international calculator

Toship

ebay search

Cnet

Cameta

CDW

Minidisco.com

Mp3factorydirect

Outpost.com

Hardwarezone

Provantage