Shopping secrets

Want to skip the Christmas crowds, or nab a once in a lifetime bargain? Online shopping could be the answer. Tim Dean looks at the glory and the pitfalls.

Christmas is a few weeks away and you've still got half a dozen gaps in your gift shopping list. It's starting to get serious. You decide to brave the local shopping centre on a Saturday morning. It takes a substantial amount of physical and psychological preparation if you're to survive the onslaught of tinsel-ridden reindeer and Christmas trees laden with seasonal marketing paraphernalia. Then there's the throngs of other frantic shoppers, shiftily eyeing out the best bargains, all the while herding a mob of excited, screaming children.

Does this picture seem familiar to you? Some love the buzz of Christmas shopping, while many dread the inevitable crowds, parking problems, and the ever present potential that the product you want is out of stock by the time you get there.

Thankfully, there is an alternative: online shopping. And the best thing is, this alternative means you don't even need to get up from your seat, let alone brave crazed crowds, in order to find the best bargains from all around the world.

Online shopping has increased dramatically in popularity over the last few years. Industry figures indicate the numbers of people shopping online has been doubling every year for the last few years, and whilst we're still a little behind the US in terms of people who are confident to shop regularly online, Christmas is the one big exception. Christmas is the ideal time to make your way through cybermalls, and retailers are expecting this year to be the biggest ever in terms of online sales.

Price crawlers like Froogle let you search across multiple outlets at once.

Retail online

Only a few years ago, if you wanted to know whether your local book store had a certain title in stock, you'd need to have a copy of their paper catalogue, or dig up their phone number and give them a call and ask. You might even remember the Yellow Pages ads urging us to let our fingers do the walking not that long ago. These days, you can let your mouse walk for you by browsing the latest catalogues of your favourite retailers online.

Even if you don't fancy making the actual transaction online, whether it be because of security fears or just because you like the act of actually going in store and walking home with the goods, you can still browse the catalogues of several stores to compare prices and get the best bargain. Most large retailers have online stores with stock information and pricing, and while you're hunting around, you might well find a smaller retailer you've never heard of with an even better deal.

The next logical step for retailers has been to implement a form of e-commerce on their sites, allowing you to place orders and pay for them online. Many retailers, ranging from department stores to book and music stores, have online shopping features, and there are many that offer discounts for online purchases. Some stores also have other nifty features, such as order tracking, so once you've made your purchase you can keep track of exactly how it's progressing and get a better idea of when it will be arriving at your door.

The first issue that comes up when browsing online is actually finding the product or retailer you want. You should be able to find the websites of your favourite retailers easy enough, but there are thousands of smaller stores out there that may be offering an even better deal. This is where online directories come into play. There are many directories, and the better ones will not only give you a broad range of choices of where to shop, but they also rate the sites in terms of ease of use, product range and customer service. Beware, though, some require stores to pay for their listing, so they're not as reliable as sites that are free for the retailers.

Things to look for when shopping through a store's website are the usual security features (see 'Safe and Sound'), as well as the terms and conditions of the sale. Make sure you have the same rights as a walk-in customer, such as with returns and refunds. Also check the delivery details to get an idea of how long it will take to ship to you. The cost of delivery should also be clearly displayed, and you should make sure that you're not paying more overall than if you popped down to the shop, especially if you're only ordering a single item and paying high delivery fees. For stores you've never heard of before, you should also ensure they have plenty of information about the company, such as a physical address and a phone number you can call if you run into trouble. Finally, one of the basic truths of shopping online in general: if you see a bargain that's too good to be true, chances are it is.

If you're doing your Christmas shopping online, you'll also need to factor delivery time into the picture. Keep in mind that Christmas is also the busiest time of year for most retailers, so allow at least two weeks for delivery, especially in December. If you really need the product sooner, you can try for express delivery, although that'll come at a premium, and some sites also offer the option of picking up the product from a store or warehouse.

Overseas stores

If you had to name one online-only store that represents internet shopping, it would have to be Amazon. The original dot com mega-bookstore is still around today, with branches in many countries around the world, although unfortunately there's not one in Australia. Many similar dot com online stores opened up in the late 1990s, and not many have survived today, but the ones that have, have done so by offering superior services and maintaining a loyal user base.

Amazon is a showcase of online shopping, and also offers some great bargains for Australian shoppers.

In fact, to this day, Amazon is a showcase of what an online store should be. It has a vast database of products that includes not just books but music CDs, DVDs, toys and games, software and more. The database is very easy to search or browse, and each entry has a huge amount of information on the product - far more than most other online stores. Another great feature is the user reviews, as well as the recommendations of other products you might like based on what other users bought. One tip (and don't tell Amazon we told you) is to start your search at Amazon, browse its collection, find recommendations and read reviews, then when you've made your decision, pop down to a local retailer and pick it up right away.

There are times when you will want to make your purchase from an overseas store. The most common reason would be if the product you want is simply not available locally, or if it's so new that it's not expected to reach our shores for another few weeks - and you just can't wait. Another reason is price, with some stores like Amazon offering incredible offers on many products.

If you can work your way through these obstacles, then you can open up your purchasing options to products from virtually anywhere in the world.

Going, going...

There are plenty of ways to shop online for new products, but what if you want used products? One way to do it is to browse the classifieds, with all the major papers, as well as dedicated classified papers like the Trading Post, having online versions of their paper publications. This is also a good way to get a gauge on the value of used items before you go shopping elsewhere.

Beyond the classifieds, one of the most popular methods of shopping online for used products is through eBay. Launched in the US in 1995, eBay came to Australia in 1999, and has grown into a popular marketplace for collectors, traders and private individuals alike. Everything from electronics, to antiques, to cars and all sorts of unclassifiable items are up for grabs.

eBay is based on the simple open auction principle, and people post items for sale with a start bid price and a close date, and the rest just goes from there. Basically, the person with the highest bid at the close time wins the auction - although there are plenty of advanced techniques you can use to win an auction.

You can pick up some cheap computer components on eBay.

eBay uses a proxy bidding system, where you can bid the highest amount you're willing to pay for the item, and eBay will only bid the minimum amount needed to win the auction. As such, you could bid $50 for an item, but if the next highest bid is $30, then you'll only need $31 to win, and that's all you'll pay. This means it's a good idea to open your bidding with a reasonable amount you'd expect to pay, and eBay will take care of the rest. If you open your bidding too low, you could end up getting swamped by other bidders, and you'll need to place a new bid.

One popular technique used for winning auctions is 'sniping'. This is where you wait until the last moment to put in a final high bid to try and win the item. If you time it just right, you can snatch victory from competing bidders. The danger is if you bid too early, another bidder will have time to counter-snipe, while if you leave it too late, your bid might not make it through in time. Sniping is just as much art as it is science, although there are a number of third party tools out there that can help you in scoring a victory. However, these utilities are not recommended as there are many spoof tools that are just spyware or they're practically useless if you're a reasonably seasoned eBay user anyway.

Always read through the seller's feedback to make sure they're a fair trader.

If you're considering bidding on an item, there are a couple of steps you should take first. Read the description of the item carefully, and make sure it's exactly what you want. If there's not enough detail, or you want more images, you can always contact the seller directly and have them give you the information you want. It's also a good idea to get a delivery quote from the seller to get a good idea of the total price of the item. You should read the seller's profile and feedback comments too to see if there is any negative feedback. Even if there is, it might be worth contacting the seller to see what their side of the story is, as it may have been an unreasonable buyer who left the comment.

eBay itself doesn't handle the transaction once you've won the auction. You'll need to contact the seller directly and organise payment. There are many options open to you, although some are more secure than others. Direct bank deposit is usually the preferred method, as it's fast and involves no other fees, although it's hard to reverse once the transaction has taken place. You can also use a credit card, if the seller accepts credit card payments, which will give you an added layer of protection from your bank's credit card fraud division. Each bank usually has advice on its site about how to best use your card online, and it's a good idea to give these pages a read before using your credit card on eBay.

PayPal is another popular choice. PayPal is a free service for buyers, and allows you to securely transfer money to any other PayPal user. If you're selling, then you may be hit with a small fee for every transaction, but this is still lower than most banks would charge for a similar service. Given it's free, there's no reason not to sign up for a PayPal account as a buyer if you're planning to browse eBay.

Another method of payment is to use an escrow service. With an escrow service, the transaction is handled through a third party, with them holding on to your payment until you've received your goods, and given them the thumbs up. Only then does your payment go on to the seller. Escrow services protect the buyer, although this gives sellers an incentive to use them as well, as it offers further peace of mind and can encourage more bids on their items. eBay recommends Escrow Australia, although there are others out there as well. Be warned, though, as there have been recorded incidents of escrow services themselves being fraudulent.

If you're not after used goods, but don't want to pay retail prices, there's yet another option for you. You've probably heard of the live auctions that take place on a daily basis in cities around Australia. Many of these include liquidated stock from closing businesses, or excess stock from large stores that need to make room for new products. The auctions can also include demonstration or reconditioned stock that is sold at a discount because it has seen limited use or has minor marks or scratches.

Grays Online features many IT auctions from leading brands.

Grays Online is one popular auction service in Australia, and you can often find a number of online auctions running at any one time, including things from office furniture, to electrical goods, to wine. Grays has a few key differences to eBay. Firstly, it acts as the intermediary between you and the vendor, so your payment goes directly to Grays, and they usually charge a premium around the 12.5 percent mark for each transaction. Also, Grays has a different method of bidding to eBay. Instead of using a proxy bidding system by default, you have to make a fixed bid, although you can set a maximum bid and have Grays automatically rebid to that limit if someone else pips your initial bid. Unlike eBay, many Grays auctions will also extend a bidding window for an extra 10 minutes when a bid is put through at the last minute. This is called the 'Going, Going, Gone!' period and gives other bidders a chance to make additional bids until 10 more minutes pass without further bidding taking place.

When using Grays Online, there are a couple of things to keep in mind. First, you should read the product description in detail, as refunds are not allowed unless the product turns out to be faulty. You should also keep track of the final cost of the item, including the buyers' premium (usually 12.5 percent) plus shipping, which is detailed in each item description. Finally, know how much you're willing to spend on an item and bid late in the game, but be careful not to let yourself get too caught up in the Going, Going, Gone! period if someone else is bidding aggressively.

Online auctions are a great way to find bargains, whether on popular or obscure items, although you should always allow at least two full weeks for delivery, meaning you need to get on to it well before the middle of December if you want things to arrive before Christmas.

Downloads

Many of us have already been shopping online for quite some time in terms of paid-for downloads. These can come in the form of subscription services to get the best download speeds on freely available files, software that is only available for download or even in the form of shareware, which has been around for decades.

The first of these options comes in the wake of the realisation by many websites that high traffic volumes cost lots of money. As such, despite the abundance of sites around offering downloads, many have speed caps or user limits, meaning you may have to wait before your download can commence. Services, such as FilePlanet, have dedicated servers for subscribers, delivering the best possible bandwidth, along with an exhaustive archive of files. This is a good option if you are a frequent downloader, but if you have a speedy internet connection, or a good ISP that offers a large download database, then you can just hunt around for your download and save the money.

In terms of downloads, there's also a wealth of software available online for purchase. By its nature, software is ideally suited to online distribution, and vendors can offer significant discounts as they don't have to add in costs for packaging materials, CDs, paper manuals or distribution. Even so, many vendors also offer a CD along with the download so you have a permanent backup. There are bargains to be had with downloaded software, such as with McAfee, which offers its popular VirusScan product in a box for $89.95 or as a download at a discount for $59.95. If you're thinking of buying a software package, it's definitely worth seeing if it's available at a cheaper price online, although you should check to make sure you're still entitled to the same levels of technical support and warranty. This is especially important if you're purchasing your software from overseas.

TUCOWS stands for 'the ultimate collection of winsock software', which shows how long it's been around.

Shareware is also another popular online purchase. With the shareware model, you can download and try the software for a limited time for free, then pay a nominal fee to continue using the software after that time. Some of the most popular software packages used today are either shareware, or started out as shareware, including WinZip, Eudora as well as thousands of other applications and utilities. Shareware is a good way to pick up cheap but useful utilities, and there are a number of great sites that offer thousands of apps, such as TUCOWS and Download.com. The main problem is filtering through all the rubbish and getting to the good stuff. Also check to see what kind of support is offered with the software, as sometimes it comes as-is.

Hunting for tech

Technology products are one of the most popular when it comes to shopping online, and here you have plenty of options. Most technology stores have a website where you can browse products and check the latest pricing, and this is a good way to find the lowest price on the product you want. As many technology products, such as components, come from the same vendor or distributor, you'll always get the same product regardless of from where you got it. This means if you can find a small retailer that sells it for less, you can pick up a bargain. Also consider that some larger stores, such as Harris Technology (www.ht.com.au) and Harvey Norman (www.harveynorman.com.au) have greater buying power, so they can sometimes offer excellent value as well. When the PC Authority Labs team calculates the prices for the A-List: Upgrade Guide, we use a wide range of online retailers to find the best possible price, and you can do the same at home for your needs.

When it comes to online PC vendors Dell is the original.

If you're looking for a whole PC, then Dell is a great place to start. Dell pioneered the idea of having a comprehensive online store, and it has refined the concept each year, and managed to stay ahead of the competition in this regard. You can jump on the Dell website, browse the catalogue, customise your PC and have it ordered all in under 30 minutes. Many other PC vendors also have online catalogues as well, so it's worth firing a few up at once to see where you can get the best price.

There are also a number of sites that are dedicated to monitoring the prices that online vendors have on technology products. One of the most popular is Pricewatch. Dozens of vendors update their prices directly with Pricewatch, and the site then displays the best price for each product category. Another popular price monitor is a part of a tech site, Sharky Extreme. This monitor looks at CPU and memory prices on a weekly basis, and adds a little editorial each time with recommendations on which processors or memory offer the best value at any particular time. While both these sites are based in the US, they can still be a useful guide as to prices for us, and many of the sites mentioned will also deliver internationally if you want to purchase directly from them.

Safe and sound

Whilst online shopping can be a great way to find a bargain, unfortunately there are still some miscreants out there who will take every opportunity to defraud you of your hard earned money. Figures from government agencies in the US and Australia, as well as leading analysts like IDC and Gartner all indicate that the incidence of online fraud is increasing substantially year on year. The cases range from hijacking eBay accounts to phishing credit card numbers or setting up scam websites that look like legitimate retailers.

Even so, there are a few things you can do to insure you're protected, and greatly reduce the chance you will be caught out. First off, the old adage that if something looks too good to be true, it probably is still holds today.

Beyond that, whenever you're about to make a purchase from an online store, do a bit of research to make sure they're legit. Check to see if they have a fixed street address that you can confirm through another source, such as the Yellow Pages. Also make sure they're using secure transaction technology, as indicated by a key or padlock in the bottom corner of your browser window and the prefix https:// to the web address.

When trading on eBay, use a system such as PayPal or an escrow service, especially for items worth over a few hundred dollars. Finally, if you sign up for a service, remember that no-one should ever ask you for your password, so if you get an email prompting you to refresh your password, ignore it, or report it to the site in question.

The Australian Competition and Consumer Commission (ACCC) recently released a report indicating that over 50 percent of online retailers had terms and conditions that breached consumers' rights as dictated by the Trade Practices Act. Before you buy, you should read all terms and conditions carefully, and remember that despite what they say, there are some things that cannot be waived, such as your right to a warranty or a refund in certain conditions.

There is a range of resources online to give you more information about combating online fraud. The ACCC has a page dedicated to online shopping, as does the Government's Consumer Online site, and many states have their own offices of fair trading with information as well. Many online vendors also include their own pages with advice on how to keep things safe and sound. It's a good idea to peruse these pages before committing to an online transaction so you can be fully aware of the latest issues.

The DVD is with you

As an experiment to highlight the different avenues for purchasing a product such as a DVD online, we've tracked down some prices for the new Star Wars Trilogy DVD from several vendors around the world.

Amazon $67.15
Assuming you have a DVD player capable of playing DVDs from another country, you can get your DVDs from overseas from vendors like Amazon. It has the Star Wars Trilogy for US$49.99, which after a currency conversion (72.18c to the dollar at the time of writing) and shipping costs would come to a total of AUD$67.15, and would take from 11 to 16 business days to arrive.

Amazon (Canada)  $82.16
When the Australian dollar was weak against the US dollar, Amazon Canada was a great alternative for low cost DVD and books. These days, though, the Aussie dollar has strengthened against the Greenback, which, on top of the high delivery costs, makes Amazon Canada less attractive than Amazon US.

Total DVD Australia $91.70
One of several dedicated online DVD retailers, Total DVD Australia is offering the Star Wars Trilogy at its recommended retail price. With a little extra for delivery, this means it's cheaper to just drive to the shops and pick up a copy there.

Video Ezy DVD  $67.96
The popular video and DVD rental store now has an online outlet, and sells the Star Wars Trilogy for well below its recommended retail price. It also offers standard Australia Post delivery in the price, or you can have express overnight delivery for an additional $1.80. Even with express delivery the total is only a little more than Amazon US, and you get a Region 4 version to boot. The only downside is Video Ezy DVD doesn't yet deliver to all locations around Australia, including some metro areas.

eBay $62
If you want to try your hand at a bit of auctioning on eBay, you could well pick up a bargain. At the time of writing there were several copies of the Star Wars Trilogy DVD on offer, in various conditions from unopened, to opened and watched only once. Prices varied from $52 from a private seller to $69.95 from a dedicated trader, although with shipping costs included the price could end up being more than from a retailer like Video Ezy DVD or Amazon US.

Note: all prices are in Australian dollars and include the standard shipping rate and, in the case of eBay, the cheapest price available.