Christian Peregin
Number of parcels up 52%
Online shopping was big this Christmas. Maltapost has seen a staggering 52 per cent increase in the amount of packages shipped to Malta over the same period last year. Photo: Matthew Mirabelli
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.
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28 Comments
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Graham Crocker
Dec 29th 2008, 22:47
lgalea
You obviously have no idea what you are talking about, you probably don't know what the EU is either.
I used to buy from the internet during the days of dial up, timing a bid with the hours I bought to use the internet (this was before always online and when ISDN was something amazing). Not books from Uk, but rather pc components, cd players, a big Siemens mobile, special wires and so on. from hong kong, taiwan, UK, USA, Germany.
The EU free-roaming is for buisness to buisness as far as I know, and when I buy an Mp3 player off Ebay from Taiwan (which is not in the EU), those laws don't affect me, because they come through (look at article title) Maltapost as Parcels.
The only effect EU brings us in this context is Better products (i'm not talking about bread and milk here) at lower prices. So what the hell is Freddie (Flintstone) and The Architect (tal matrix) making you talk about.
I was speaking about the sideeffects of the Global Recession, if everybody decided to buy everything online (from EU,Asia,Africa,USA, Australia etc).
M.Gauci
Dec 28th 2008, 10:58
@E.Delia
Very easy to answer:
(1) I never said that the Sony Agent should honour the International Warranty in my case. I made it amply obvious (should you have cared to read properly) that the accident was entirely my fault. I made it clear at the Sony agent that I was ready to pay for repairs. The answer was "You're on your own since you did not purchase it from us"
(2) Systec helped without questions asked and without caring of whether I would buy anything from them in future. That is customer care, you know!
(3) No I did not AS YET buy anything directly from Systec, does not mean I will not do so, but from the other unhelpful agent you can rest assured I will never do so. Systec have gained from the good comments_I_spread_around_about_them.
(4) All the other products purchased, except for the PS2 were bought locally
(5) You can buy as much as you like from that agent, it is really your pigeon and your money on the line
E Delia
Dec 28th 2008, 10:44
This debate has been going on for a long while, not just in Malta but also in the UK where retailers were complaining about the competition presented by the on-line stores.
Some comments here though are mutually exclusive:
Mr M Gauci: You expect me to believe that had the local agents gone out of their way to honour a warranty on a product not purchased from them, then you would have purchased more items from them? I don't believe that and obviously, neither did the agent. And by the way, did you buy anything from Systec after they supported you?
If you don't support the local business, then you cannot expect to be supported by the local business when you need it. The local agents need to use their limited resources in order to support THEIR local clients.
M.Gauci
Dec 28th 2008, 10:09
@Igalea
Joining the EU has nothing to do with Globalisation. Now I could go into further details explaining why, but I am sure I would be wasting time since your reddish tint will never allow you to process facts from fiction.
lgalea
Dec 28th 2008, 09:29
Graham Crocker
Well, people voted for the eu didn't they?
That means that there is now an eu wide market from where to buy.
Those who voted in favour of joining the eu are now realizing what it means.
Happy New Year to all especially The Times Editor and Staff who have to bear with us the tribulations of seeing all our comments and posting them here.
A very big THANK YOU.
Graham Crocker
Dec 28th 2008, 01:00
@Jean Paul Gatt
They are not ripping you off, they have to pay for things other than the book and remember Malta is only a population of 400,000, wheras in London alone as far as I remember are 7 million , therefore their profits per product can be lower, while earning a greater Total net profit, because they'll have far more sales in a year.
Saying that do you know Woolworths is closing down? Would you like all the major shops in Malta to close down, and when you'd need something at that instance, you won't be able to buy it?
I'm not against online buying, but to buy everything from the internet is sheer madness, conserding the Global Climate and the inevitible recession. Do you really want businesses to fail before or cut down more workers?
People should be spending all their disposable income, so we try stop the recession or slow it down ,not dothe opposite and the goverment is getting less money, because nobody is buying property any more. No wonder there is a larger deficit than expected, if everybody stops buying we might as well ask CommunistChina to adopt us.
P James
Dec 27th 2008, 21:32
@C. Saliba - You will find the majority of retailers that ship to Malta from http://www.rewardlover.com as stated by T Xuereb plus they offer cashback on every purchase so in a way it covers the cost of delivery.
Jean Paul Gatt
Dec 27th 2008, 21:05
@Maurice Bonello
Purchasing from people who are ripping you off is not patriotic, it's just plain old Stupid. And it is far more secure to buy online than to hand over your credit card at a restaurant, or write a cheque or pay in cash. But, if you want to live in the past that's your choice I guess! In the meantime, I'll be buying from all over the world.
I only wish Maltapost and the Maltese in people in general would adopt a more honest approach when doing business online. I'm getting sick of tired of getting this kind of replies from e-tailers... "Sorry, we do not deliver to Malta. Although you were a good client in the past, we have suffered too many lost packages when delivering to Malta".
Maurice Bonello
Dec 27th 2008, 20:40
@Graham Crocker quite right you are absolutly correct, why should the Maltese make the UK richer and make Malta poorer! is beyond my comprehension. I remember the time when Britain had a slogen Buy British and every Brit. done just that. You never see any foreign entertainers on British TV - anything thing foreign is taboo. Now we maltese can take a leaf from their slogen although we are not as selfish as the British but then again charity begins at home and we should support our local traders and shops, we show the brits. that we are still a great nation and never what Malta will always comes up tops, ofcourse competition is the name of the game but then again thats business and at the end of the day the public's choice. I'll never buy on line primarily i don't think its all that secure but thats my opinion and i just don't trust the system thankyou verymuch.
Gabriel Cassar Torregiani
Dec 27th 2008, 19:35
Like C.Saliba i buy from play.com, however once too often things do not arrive. This Christmas i ordered 4 pS3 games with 2 arriving. I believe the problem is local. Unfortunately play.com does not have a tracking system. So when we are classified as we are, you now know why. Maltapost have enough complaints to warrant an investigation.
C. Saliba
Dec 27th 2008, 18:16
Whenever possible I buy everything online. play.com is the most efficient and reliable and postage is free. Pity they do not deliver electronics outside the UK. Can some readers help and let us know onliner retailers who do.
Play has to be paid in euros at, unfortunately, an unreasonable €1.40 to the pound sterling. hmv and blahdvd accept payments in pound sterling and although they charge for postage it may work out cheaper. Blah only charges a nominal one pound sterling for postage.
I have never bought from amazon. They classify Malta as 'rest of the world' and charge you their highest rate of postage, the same as that charged for Argentina. For amazon Malta is not in W. Europe (although Greece is) because their postage rates are based on a country's location and not on EU membership. Their geography is fantastic!
How about a forum informing locals to share their experiences with online retailers who post to Malta. It will help readers to be aware of the reliable ones and those that are not, and those who offer free or reasonable postage to Malta.
J. Saliba
Dec 27th 2008, 16:28
We have been ripped off by local representatives for far too long. Ever since the local Lidl offered an excellent digital camera at €99 the local representative quickly reduced his prices to compete.
Buy locally for peace of mind! You must be joking. How do you expect local representatives to honour International and Worldworld guarantees when they do not even honour the guarantees for items bought locally? My Waterman was bought with a lifetime guarantee and I still had to pay €10 to tighten a screw on the pen-nib.
We have been in the EU for four years yet are rights concerning guarantees are still disregarded.
wally vella-zarb
Dec 27th 2008, 15:36
It's all very well for the local retailers to claim higher operating costs, but why should we be expected to support their overheads / mark-ups?
How can you justify a 60ml tube of acrylic paint (Winsor & Newton Finity range) being sold locally for Lm3.50 when I can get the same brand from the States at less than $3 or from the UK for under £2.50? (I don't know the Euro prices that they are now being sold at because I stopped buying locally).
Even when I add postage and packing, it works out cheaper - and I am comparing like with like.
catherine caruana
Dec 27th 2008, 15:09
Much has been said about the cheaper cost of buying on line electronic items on internet.What about buying perfumes of brand names and costume jewellry?Try it.They are exactly half the price of their cost if you were to buy them from Malta.And this includes shipping and getting them to your house .This year I bought such items on the internet and hopefully will do the same for next year.
T Xuereb
Dec 27th 2008, 15:09
I buy online but i shop through a site called rewardlover. They offer users money back from hundreds of online at stores who ship to Malta such as play and ebay. This site offer users like me a good incentive to shop online.
M.Gauci
Dec 27th 2008, 14:46
I have to agree with Duncan Sant. I bought a Sony Vaio from Tottenham Court Road and a year later I unfortuantely dropped this laptop, which needed repairs. I have an international guarantee, I wasn't expecting to use it, I knew it was my fault.
The same local Sony Agent which Duncan Sant mentioned, asked where I had purchased the laptop...I replied the UK. The person bluntly tells me, you're on your own!
I then took this laptop to Systec Malta, I believe local agents for HP in Msida and they fixed it for me, no questions asked.
In the meantime I have purchased another Laptop - DELL 1720, a playstation 2, a WII, a video Camera Cannon and an SLR again Canon, and never even set foot at the SONY agent in Malta for how they treated me when I needed their help.
PS. The playstation 2 was bought, well again, from the UK.
Who really lost out was it the local Sony agent or me ?
M.Degiorgio
Dec 27th 2008, 13:47
The Maltese market, being so small and limited, obliges retailers to apply high margins with which sales personal are employed, and all other expenses paid through.
It's the price to pay to have a decent retail economy with plenty of choice. If small margins are to be applied, we will have a lot less shops, restaurants and so forth, Malta will become dull. Is this what we prefer and want?
On the other hand, retailers will do well not to exaggerate and explain things intelligently and not take us for morons!
martin saliba
Dec 27th 2008, 13:16
@kenneth roberts
Although buying in shops is more expensive at least you will have piece of mind should anything go wrong and you need support, if you bought a playstation from abroad and it broke who would you take it to?
Take it to local authorised deal / distributer. If i'm not mistaken they are bound legally to repair if item was bought from the EU. Please correct me if i'm wrong.
Duncan Sant
Dec 27th 2008, 13:15
When you buy expensive items such as electronics from abroad, one of the things you should check is the warranty. If the warranty is International and Worldwide, then the local representative is bound to honour the guarantee.
I have seen adverts by Forestals saying that if the item is not purchased from them, they will not honour the guarantee... while on the other hand SONY give a worldwide guarantee....this is a rip-off!
Graham Crocker
Dec 27th 2008, 13:06
I do buy online, but the thing is if everybody decided to buy online. We might aswell all go out and take loans we will never pay, because we're asking for a recession. Whats the point of saving money, if all our businesses close down? We're earning money to make UK richer & Malta poorer.
Do you find it surprising that shops ask more money than a website? the cost of hiring a server is much less than renting premises, infact I believe it costs half or even less.
Not withstanding, Maltese shops cater for 300000, websites cater for the world.
I do not buy everything online, for example when it comes to things where I want gaurantee (laptop, monitor, calculators, hard disks and so on), I prefer to pay a premium to get a product with a good after sales service.
When it comes to books, DVDs and CDs, which are available online for free by the way. I tend to download first and if I like them or need them, I would buy the ones I want from local shops rather than buying 4 from overseas, I'd buy 2 from Maltese shops that I'd need.
K Camilleri
Dec 27th 2008, 13:00
it is true Mr. Roberts that if you are going to buy an expensive electronics item from abroad, you'll have the problem of the warranty and all the hassle that it will bring with it, however, as regards games and DVD's I'll prefer to buy them from the internet since it is difficult to have a fault in them and they are not going to get some sort of damage. However I was arguing on the fact that in Malta a price for a console or any other electronics is twice the price for the same item in the USA or the UK. Which is definatley not fair. It would be great to have a comment in here from our retail outlets like Forestals and Exotique, however, we all know the answer, having an online shop is much cheaper to run than a proper shop - which I give this to them. However, in near future these types of shops will close down and all will be done online, even in Malta.
PM Camilleri
Dec 27th 2008, 12:42
A box of 90 disposable contact lenses (Focus Dailies) costs 52.88 Euros. From the UK such a box costs 36.95 Euros including p&p! A saving of almost 16 Euros! An Agatha Christie paperback retails for 11 Euros locally. From Play.com it retails for 7.99 Euros!
I personally think that the profit margins are being kept too high locally. Sooner or later they'd have to lower their prices.
kenneth roberts
Dec 27th 2008, 12:30
What you must realise is that importers in malta lose out in bulk buying. These big online retailers like amazon, play etc buy thousands of items at a go, therefore they get much better pricing since when you buy in bulk the manufacturers give much better prices and also they give more items for free.
We simply can not do this in malta, we don;t have the market numbers to allow us to import such large quantities of products and benifit from these discounts.
Although buying in shops is more expensive at least you will have piece of mind should anything go wrong and you need support, if you bought a playstation from abroad and it broke who would you take it to?
lgalea
Dec 27th 2008, 12:00
Save Money.
Buy On-line
K. Camilleri
Dec 27th 2008, 11:31
The same thing applies for console and PC games. A just release PS3 game costs just €56 from Play while it is sold €70 from local shops. I'm sorry - I never buy games locally since they are extremley expensive and prices are unreasonable. In Malta it is a shame the high cost price of electronics. I bought the PS3 in June 2007 and it cost me Lm300, in the US is was sold for around $550 - quick conversion I bought it for $1000. It is a shame. Sorry - we buy online!
Luke Buttigieg
Dec 27th 2008, 11:25
I'm glad everyone is finally realizing how we are constantly ripped off my the local shops here in Malta. Thank God for the internet, perhaps now the local retailers will start reacting to this competition.
Oh and thank you for running this article and making everyone aware of what's happening :)
Joe Scerri
Dec 27th 2008, 11:00
I for one purchase as much as possible online. This year alone I saved around 500 (yes five hundred) euros. Thank you play, amazon, e-bay etc etc. Its even cheaper to buy stuff from outside the EU including courier and VAT !!
No more lame excuses please.
Randolph Spiteri
Dec 27th 2008, 10:54
I' m surprised that anybody actually buys books and dvds from local shops.
I've stopped buying books and dvds locally for several years now. First it was amazon then play.com. I wouldn't expect local prices to match online ones .. but come on ! They're practically double !
Same goes for mobile phones, cameras etc. I recently bought a fuji camera from ebay and it was practically half price from a local shop (which is renowned for best prices).
So it's your choice really .. either make local business rich overnight (which is what they're looking for) or else use your common sense and order online !
I'll refrain from buying books and dvds until prices go down. And my advice before buying something expensive .... read a lot and I mean a LOT of user reviews .. these are far more precious than the 5 mins you can spend fiddling round with a camera or a mobile in a shop.