Bargains and risks of online shopping

The place where consumers always expect to find a good bargain is undoubtedly the internet.

Unbelievable discounts are advertised on every website. But cyberspace is far from being the heaven every shopper dreams of.

Even though consumers can really save money if they shop wisely, caution is advised throughout the shopping experience. Large discounts prove to be a real bargain as long as they are not eaten up by additional charges that seem to come out of nowhere.

Most of the time, these hidden charges are camouflaged as shipping costs. Sometimes, sellers project the impression that their prices are lowest on the market but in reality make up for the reduced price by inflating shipping charges.

Consumers' best defence against exorbitant shipping charges is comparison shopping. Naturally, consumers should compare both the price of the product and that of the shipping. It is only by adding up these two that consumers are really able to detect a real bargain.

Another tactic used by internet sellers is charging for 'express' shipping. To encourage consumers to select this kind of shipping, other shipping methods are either excessively slow or not insured. Shipping upgrades to more acceptable timelines are then offered to consumers for an extra fee.

Therefore, before buying anything, consumers should double check the shipping policies of the seller and calculate the total cost involved to actually have the item delivered to one's house.

Moreover, when goods are bought from outside the EU, the risk of hidden charges increases.

Depending on the item purchased and its value, may be required to pay customs duty and/or VAT.

Even though these fees are legally established and above the seller's control, consumers may still feel they are being ripped off of more money before they can finally hold the product purchased.

Consumers' best tool to avoid any unpleasant hidden charges is to carefully calculate all expenses, including tax rate and customs duty, before clicking the 'order' button.

This calculation will help consumers determine whether or not their online purchase is actually a bargain or not.

Besides these precautions, there are also EU regulations, such as the Distance Selling Regulations that bind internet sellers to provide complete information about their goods and services and all costs involved. When it comes to distance selling, transparent information is a must.

Basically, businesses engaged in electronic commerce should provide sufficient information about the terms, conditions and costs associated with a transaction to enable consumers to make an informed buying decision.

Ms Vella is senior information officer, Consumer and Competition Division.

customer@timesofmalta.com, odette.vella@gov.mt