This Christmas saw a 52 per cent increase in the amount of packages shipped to Malta over the same period last year, with books, DVDs and CDs topping the list of the most popular items, according to Maltapost.

It comes as no surprise because some items can be bought online for about half the price in Malta, according to a simple analysis by The Times. Better still, most online shops include free packaging, shipping and home delivery.

As shoppers rushed to buy their last gifts with ever-shrinking budgets this week, they may be frustrated to realise how much they could have saved if they shopped online... It could be a New Year resolution for the next festive season to plan ahead next Christmas.

The bestselling paperback at Agenda bookshop, 7th Heaven by James Patterson, is selling at €13 but on Play.com, which delivers to Malta for free, it will only set you back by €6.99.

A DVD box-set of the popular television series Grey's Anatomy costs double the price at Exotique than it does from Amazon.com while the Mamma Mia! original movie soundtrack is sold at Exotique for €15 but can be bought for €9.99 at Play.com.

But according to a salesman of video games and electronics, the key to remaining competitive was to provide a service that online shops could not give.

"We give bundle packages, guarantees, the chance to try out the product before you buy it, after-sales service and the security of knowing what you are buying and being able to return if something goes wrong," he said. Although he also buys certain items online because of the competitive prices and wide selection, he believes that the two types of shopping can coexist, targeting different types of clients.

He said that, due to economies of scale and the sales service, the prices have to be higher.

Electronics and gadgets, like video games, consoles and Mp3 players are also much cheaper online but many online providers do not ship such items to Malta.

However, thanks to a large number of Maltese living abroad who return home at this time of year, many smart shoppers have shipped the items to relatives in the UK or elsewhere, to get the items delivered for free. This way, as long as the country in question is within the EU, they also save on VAT and duty costs and get through Customs easily.

The new Apple Mp3, the iPod Touch, costs more than €100 extra if bought from Scan Computers, as opposed to one of the many electronic shops online. The same can be said for the iPod sound-docks and other hi-fi equipment bought from various shops around the island.

Another trend that is developing is shopping for clothes online from websites like Asos.com.

A lady who has stopped buying clothes locally said that when she shops online she finds a better selection and better quality. She can also do it from the comfort of her own bed! Although she has to pay for shipping, the cost usually works out to be the same as that in Malta because the actual cost of the clothes is cheaper. Another popular way to shop online is through eBay.com, where users sell their second-hand items through a system of auctioning. Although the site is less reliable and more complex than standard online shops, eBay offers users the chance to find a bargain and buy from a huge selection of items, many of which cannot be found locally.

The director general of the Chamber for Small and Medium Enterprises - GRTU, Vince Farrugia recently said that, in Malta, online shopping increased in popularity - especially from foreign sites - creating more competition for local shop owners.

The trend has turned the fortunes of the postal service. Maltapost official Pierre Montebello says that, despite a sharp drop in traditional mail, the postal service now receives all kinds of packages from abroad including tyres, spare parts, TVs and computer equipment: "Once we even received the windscreen of a truck."

With a market of millions of customers, it is no surprise that big websites can afford lower prices. In particular, buying from the UK has become even more cost-effective due to the recession and drop in VAT. An e-commerce study by Ernst & Young launched last July showed that 58 per cent of the Maltese who used the internet shopped online, with the figure rising from 35 per cent in September 2006.

Fifty-six per cent had said the prices were better, 36 per cent said it was more convenient for them to do so and 27 per cent pointed out they bought products that were not available locally.

cperegin@timesofmalta.com

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