Online Sales – Face the truth!
Posted By Mimenta on May 21, 2012
The retailers are lying when they tell you that no GST gives online sellers an advantage over retailers in bricks and mortar shops. The truth is actually the opposite:
- When I buy something online, I have to pay postage and handling, something my local store doesn’t usually charge me for. If I bought something as large as a refrigerator, on line, the postage and handling is at least 20% more than if I bought it from a department store who charges me for the local carrier to deliver it (and I know what time or day he will drop it off too). Postage and handling for online sales is always more than GST. If the retailers really want the “level playing field” like they claim, they should increase the GST to 15% to equal the online postage and handling charges.
- If I’m not happy with the goods, I can take them back to the store for an exchange or refund. Australian Consumer Laws protect me if the goods are defective or fail to perform as the seller advertised. Online, there is no such protection. The seller is likely to reside overseas where our consumer laws don’t apply (even when it says he’s in Australia). Refunds or exchanges are purely at the discretion of the seller who is not legally bound to offer them.
- Retailers ignore the fact that already many of their current sales are the result of buyers researching the product online and going to the store to touch and feel the actual product (the “hands on” experience). In the USA a study was performed on shoppers and it was found that over 22% of department store shoppers used the Internet to research their purchase first but bought from the store for their final purchase because they wanted that final “hands on” experience that they could not get on the Internet.
The real truth is that retailers will lose business to online sellers and they deserve to because:
- Retailers charge too much. The Jewelery trade marks their product up often by over 600%. Retailers have grown used to huge profits for little work and need to get leaner. I don’t have to buy off you. There’s other stores, so make it worth my while.
- Retailers give such poor service, that people might as well go online. You can’t look at anything in a store without being pounced on by someone.
- Retailers don’t research their products. I can find out more on the Internet than I can in any store, from an attendant. In a Harvey Norman Store, I was given wrong information twice about a laptop computer by an attendant who tried to sell me a laptop that was not suited to what I wanted. At his sales desk was a computer where he could have looked up the information on the Internet but his employer would probably consider that a waste of paid time. One of the worst offenders would be the Dick Smith and Tandy stores, when it comes to selling electronics components – their attendants are so ignorant of their products, it’s lucky they haven’t electrocuted someone.
- Retailers treat customers like sheep. Why should I queue at a Harvey Norman store to pay a cashier for my purchase? I spent 5 minutes in a queue in a Telstra Shop to wait for an attendant and I hadn’t even been served yet! I walked out and signed up with Southern Phone over the phone and got them to cancel my Telstra Account, all while I sat in my car in the carpark!
- If I have to talk to an Indian or Philipino customer service officer about my Melbourne purchase, why don’t I just go online and buy direct from India or Philipines for at least 20% less, online?
- Stop feeding me that Buy Australian patriotic crap – your products came from overseas, your customer service is overseas and you are probably saving up for another holiday overseas. When I see Gerry Harvey saying “We are losing Australian jobs” I want to puke. It’s a case of “Pot calling the kettle black”. How many Aussie jobs were lost when a huge chain like his Harvey Norman Stores sources their goods from places like China?
It’s time retailers showed some integrity, and faced the truth. Even with the advantages of “hands on” experience, consumer law protection, lower delivery costs and face to face personal human contact to cater for my needs personally, you just aren’t good enough to earn my business!