Ivan Camilleri, Brussels
Online shopping 'usually cheaper'
Maltese consumers had better get more accustomed to buying online as according to a new EU study, many products bought from foreign online websites are at least 10 per cent cheaper than if bought from Maltese shops or local websites.
In an EU-wide Mystery Shopping exercise performed recently by the European Commission in all the EU 27 member states, shoppers tried to buy 100 products like cameras, CDs, books and clothes from a cross-border provider. Over 11,000 test orders were made.
The results show that Maltese consumers are not getting a very good deal when buying locally compared to the deals offered by foreign websites.
On over half of the 100 items ordered, the price of products offered by foreign online websites was over 10 per cent cheaper than the prices offered in Malta, even when including the shipping costs.
The study also identifies other problems being faced by Maltese consumers.
One of the major obstacles is that online shopping in Malta is almost non-existent with a mere five per cent of items in the EU's shopping list being available online.
The other main problem is availability, as many online suppliers across Europe do not ship to Malta. According to an EU official there might be various reasons for this.
"One of the reasons might be that the Maltese market is so small that foreign retailers do not feel it is worth offering the facility to ship there. However, another main reason might be that retailers in Malta, who in many cases act as agents for many products, put pressure to their foreign suppliers not to offer these products online to the Maltese market as this will mean losing their business," the official said. Recent data issued by Eurostat shows that Malta registered the highest inflation in the euro area in the past 12 months and it is widely known that prices of many imported items in Malta are much higher than in other EU member states.
However, according to the study, Maltese consumers are not the only ones facing problems. There are in fact widespread problems with refusals of orders by EU consumers trying to purchase goods online in another member state. The research found that 60 per cent of cross-border transactions could not be completed by consumers because the trader did not ship the product to their country or did not offer adequate payment facilities.
Malta fares as one of the member states which tops all the three main categories researched: higher prices in the local market, lack of supply by foreign traders and no facilities to buy online locally.
Consumers Commissioner Maglena Kuneva described the results of this research as "very striking" and said the figures showed the extent to which the European single market for consumers was not happening online.
"Better deals and greater product choice for consumers on our vast European market could be just a click or a mouse away. But in reality online shoppers are still largely confined within national borders. Europe's consumers are being denied better choice and value for money and they deserve better," she said.
28 Comments
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Joe Fenech
Oct 26th 2009, 13:52
J Duca
Yes Primark is cheap, but it's also crap quality and design!
Why such a title?:don't we all know it?
J. Duca
Oct 25th 2009, 11:16
And what about those who do their shopping abroad. If you visit Primark or Lillywhites in London or Manchester, you think you are still in Malta (apart from the prices), because here,and there, you can hear someone talking in Maltese. You can get a Nike runner from a high street shop in London for a fraction of the price you get from here. Maltese consumers have been taken for a ride for years now. The last being when retailers promised us that prices will go down with the introduction of the euro. Yes in fact it did went down, but only from Internet shopping.
Jos Vella
Oct 25th 2009, 08:53
everyone has expenses, even consumers..not just the business man! It is now the time for business to start changing their strategy; one does not necessarily need a shop, a website will be just enough (depending on the type of business of course!). I am an online shopper and honestly at times the item price including postage is still far cheaper than local prices. Business must understand that the tricks of the trade have now changed, and if a business wants to survive then tactics and methods need to be changed. Customer Service has improved in Malta, but in certain cases it is still far from Satisfactory. Lots of improvements are yet to be done.
Eugenio Taliana
Oct 24th 2009, 20:10
I live on my own and whenever I order from abroad the postman never finds me home, therefore I have to go to the post office myself for whatever it is that I've ordered - apart from that, I do not know why the first postal advice never manages to arrive at my home and therefore I always receive an advise from the post office that if I do not pick up the object it would be returned to the original owner.
M Borg
Oct 24th 2009, 19:18
Shopping online will all save a fortune. I think Maltese retailers are greedy and the government do not regulate price fixing.
@L. Gatt
I have been using this site for well over a year now and have saved a nice amount. I'm not 100% sure if they are a Maltese company but i can't say i ever had any problems. And the customer service is very good, much better than what your get in Malta.
Joe Grima
Oct 24th 2009, 17:40
During the last ten years Malta has become incredibly expensive. There was a time when we were told that because of new circumstances ( I can't remember whether it was the introduction of the Euro or something else) hundreds and hundreds of items had been reduced in price. Even with that, internet prices are most times much much less than local ones and traders in cities like Hong Kong include free freight with their items. I have been shopping online for years buying art, electronics, books, Cds and DVDs and the instances where I was robbed were very few and far between. I pay through Paypal. Both Paypal and local banks issuing card cards will refund if something goes wrong. There are some companies that don't ship to Malta or will ship one Item only such as Amazon US. There are also hundreds of thousands of foreign companies that ship to Malta. Internet shopping is the citizen's antidote to the few but irksome get-rich-quick, sometimes couldn't-care-less local traders. Thank God these are in the minority but even with fair traders, in most cases local prices remain higher than internet ones.
Joanne Micallef
Oct 24th 2009, 16:29
Granted that the running costs in Malta are high, for us customers this fact is irrelevant. The retailers must understand that we customers more often than not find it hard to make ends meet, so it’s only obvious that in time the number of people who buy online will only increase.
joe briffa
Oct 24th 2009, 15:02
Of course online things are cheaper to buy,they always where,here retailers want to g et rich quicker,has nothing to do with importing prices or anything,to be honest I am glad that this is of competition,to every retailer in Malta,in fact here these business men are ruining every bit of the economy,maybe someday they will learn.....example.;here you buy an LED light bulb for 22 euros,where online I get 5 for less that price including postage
M. Debono
Oct 24th 2009, 14:56
@ Mr. Aquilina
There are many reasons why products are more expensive in Malta,
here are a few:
Since we have a small economy we can not haggle a better price with suppliers (larger orders = better prices) - online you only buy 1 product not dozens, less chance of haggling.
Shipping to Malta is very very expensive (up to 10 times more than shipping to other, more distant locations) - when you buy online, you ALSO have to pay for shipping
expences to register and run a business in Malta are many times higher than overseas, with limited tunover this is a problem - aren't we now complaining of low wages!! why is running a business more expensive than abroad??
Shop owners have seen their profit margins down to a fraction of what they used to earn previously (1980's esp), most of these profits are now going to the government (or govt entities) - in the 80s 65% income tax, today 35% income tax. ARE YOU SERIOUS!
If prices and to go down AND business survive, the Govt is going to have to reduce it's direct and indirect taxes and charges - LOL.
Erin Ciantar
Oct 24th 2009, 14:56
@David Ellul
"For instance, if an item is sold online the purchaser has the right to return the item for full refund no questions asked after 7 days of using it. "
Another reason why I only shop online.
Edward Zammit
Oct 24th 2009, 14:20
I make online transactions very frequently, and when you see prices of some products compared to the prices you see here it's ridiculous. Vehicle parts, music, DVD, gadgets, jewelry, you name it,, IT"S MUCH CHEAPER not just 10% !!!!! I wish that I could support local businesses but unless they change their attitude and keep thinking that they are the royalty and the consumers are the serfs. I will do what I've been doing for quite some time turn my back on local legalized fraud and go for foreign honest prices !!
martin saliba
Oct 24th 2009, 14:13
I have a Hitachi driller which i took in for repairs a few years ago and was told that the parts alone would cost Lm 42.00. I took the model number and looked it up on the net and found a supplier in the UK that sold Hitachi parts. I ordered the parts needed and they sent me enough to repair the same fault 5 times. Cost of parts , 2.02 pounds sterling and 5.00 pounds sterling postage. Someone please work the maths , i'm not bothered.
Nigel Lawrence
Oct 24th 2009, 14:13
The ONLY things I but locally are my food supplies, otherwise, everything else from the net.
janet bayes
Oct 24th 2009, 14:07
@L.Gatt - - - it might be a good place - - if I could get in after opening an account!!! My log in details emailed to me, but I dont exist. I just knew online shoopping in malta is/was a joke!!
margaret richards
Oct 24th 2009, 14:06
Buying things from Malta is as good as robbing yourself. I buy lots of things from ebay, and most of the things are as other bloggers are saying ridiculously low. In fact I already started my Christmas Shopping online. Saves me time, money & hassle to find a decent parking place. So yes i'm all for online shopping. No to shopping in Malta!!! Especially books!!! Even magazines. For examples I only watch italian TV so I buy Telepiu' magazine. Last year it was 95euro cents, now it's 1euro 45 cents. I was in Italy few months ago and I bought it for just 75 euros. Although this is not online shopping it shows to which extent we are paying more for same items we can get for less.
L. Gatt
Oct 24th 2009, 13:22
I don't really care who is to blame anymore. I simply refuse to purchase most of the things i need in Malta anymore. Why pay more for the same item after all? A friend of mine told me about a Maltese website called www.rewardlover.com. You can shop online for loads and loads of things for really cheap prices, and not only that but you get cashback as well. I had never heard of such a thing as this concept seems to be new in Malta. But it is really great.
I'd recommend it for sure.
Andrea Portelli
Oct 24th 2009, 13:04
I will always shop online for specialized products.
Everything is a rip-off in this country under the excuse of "small country > small demand / few consumers > high prices" (Which for me is no excuse).
At the end of the day it's local retailers that are losing, not online-customers!
Joseph E Briffa
Oct 24th 2009, 12:28
Funny.... 10% cheaper? you must be kidding. I buy used cameras for my collection and the prices on ebay are ridicilously low..the same goes for books, car parts. The books in Malta are mostly imported by the Millers and the mark-up is astounding! In fact the locals reduce prices of books by 50% after some time and they still make a profit. It's a rip off here..they better adjust their prices as their sales are bound to go down with more locals shopping on line.
David Ellul
Oct 24th 2009, 12:23
Being a local retailer this article really annoyed me. It is unfair and a slap in the face to those who operate an establishment with integrity and honesty.
As I logged on to a UK site that sells identical products as we sell ( http://www.modern-rugs.co.uk/page/product.cfm?event=shop.shopfront.product&id=3216 ) an item that we sold just yesterday sells for 449.00 Pounds Sterling equivalent to 488.00 Euro. Our price 344.00 Euro. That is 144.00 Euro. cheaper than a UK online store.
The article also states that local online shopping is almost non-existent. Could the reason be that conditions for online sales are unreasonable? For instance, if an item is sold online the purchaser has the right to return the item for full refund no questions asked after 7 days of using it. What is the retailer supposed to do with the returned item? Do EU regulations suggest that the retailer resell the used item as new to someone else?
The main reason that many online stores do not accept Maltese orders is due to too many orders lost and not delivered. Not as the article stated that it is due to local Businessmen putting pressure on foreign suppliers, That is ridiculous.
James Aquilina
Oct 24th 2009, 12:20
There are many reasons why products are more expensive in Malta,
here are a few:
Since we have a small economy we can not haggle a better price with suppliers (larger orders = better prices)
Shipping to Malta is very very expensive (up to 10 times more than shipping to other, more distant locations)
expences to register and run a business in Malta are many times higher than overseas, with limited tunover this is a problem.
Shop owners have seen their profit margins down to a fraction of what they used to earn previously (1980's esp), most of these profits are now going to the government (or govt entities).
If prices and to go down AND business survive, the Govt is going to have to reduce it's direct and indirect taxes and charges.
Joanne Micallef
Oct 24th 2009, 12:06
@ Mr Anthony A Mifsud - Please share the link for this E Shop to help us all save a buck.
Another way to save a huge amount of money is to buy your health supplements from abroad, I get mine from Health Span and I can assure you that you'll save loads of money by doing so.
joe scerri
Oct 24th 2009, 11:35
'usually cheaper' is a gross understatement. It more like something around half the price.
Joanne Micallef
Oct 24th 2009, 10:40
However, another main reason might be that retailers in Malta, who in many cases act as agents for many products, put pressure to their foreign suppliers not to offer these products online to the Maltese market as this will mean losing their business," the official said.
Isn’t this against the law, especially within the EU were free trade and competition are the norm?
Anthony A. Mifsud
Oct 24th 2009, 10:17
I can not agree more, infact we have ordered and purchased some Energy Saving Bulbs from a E shop in UK, and the cost plus shipping was 60% cheaper then the local market.
Plus you can choose your bulbs not the likes of our dealers that they try and sell what you don't need.
I recommand to all to go on line and buy on line
Tony
Randolph Spiteri
Oct 24th 2009, 10:07
Did you say 10 % cheaper ??
This must be a joke as in realty products are very often 50 % cheaper on the internet
Try going to "play.com" and compare prices of books and cds to local ones.
I really can't remember the last time I bought a CD or a book locally and just to let the readers know, I simply love books and when in the mood I spent hours and hours reading so I have to order frequently to satisfy my quench for reading.
So until I see local prices drop by at least 50%, I 'll never go and buy a CD or a book locally. I won't argue as to who's ripping off who : that's for the consumers to judge. Its a free market and everybody sets his own price. But the consumer should be king and if you don't like the price or service do like me ...... take your custom elsewhere !!
Kevin Camilleri
Oct 24th 2009, 10:01
Finally! It was about time this survey was done, even though there wasn't a need for it since we all know how things are.
You ask companies to ship you products and tell you to go to your local store! Yes why not, so he'll charge you a hack lot of money for the same item you see much cheaper online. Just to mention one thing, I bought around 2 months ago a steering wheel for the PS3. From maltese shops it was priced around EUR 330, I bought it from ebay (UK Seller) @ EUR 187 inclusive of shipping. This is not to mention that it arrived at home 3 days after I've ordered it.
Sorry but aren't we in the EU as all other Member States? How come we do not game threated the same way as other citizens in other countries? Can the EU do something?
Muscat. Pat
Oct 24th 2009, 10:01
Shipping a mere 100 kilos of freight from London cost 20 Euros,but the cost from Free Port to Hal- Far, with all the "services" add up an other 160 euros! Yes, 20 euros from London to Malta, and 160 euros to get hold of ones freight at Hal-Far! It makes you wonder how "monopolised" free markets work wonder! Somewhere, somehow ,someone is siphoning off most of the extra costs 160 euros. Blame it on local traders? Hardly. Blame it on those who negotiated this state of affairs. Someone is making a quick buck , and you don't have to be a rocket scientist, to understand who is responsible for all this money trap.
Edward Penza
Oct 24th 2009, 09:58
Online shopping will remain cheaper and will hurt local business more than it's already doing. Local retailers don't seem to be worried about losing business to online shopping (or aren't aware?) and that spells bad news for an already frail economy.
Just the other day I asked a "salesman" in a local shop why the manufacturer's recommended sales price for a particular product is 299 euro all over Europe and they insist on selling at 329. The answer "Eqq, ma nafx jiena, but that is our price."
Government - Educate local retailers?
Local retailers - WAKE UP!!