Websites, auction sites and the latest, blogshops, which are
marketed through social networking sites like Facebook and Twitter,
are changing the face of retail. Here are some considerations when
shopping at virtual stores.
Georgette Tan, a journalist based in Sarawak, shops extensively
from blogshops. She mainly looks for clothes as she finds the
options limited in the shops in Kuching. “I'm a plus size gal and
it's difficult to find anything that fits in the outlets here,” she
says.
The blogshops are mainly located in Kuala Lumpur or Selangor,
and the items are sent either via PosExpress or PosLaju. To date,
Tan's experience has been largely positive. “I've yet to encounter
one [a blogshop] that didn't ship the goods.”
There are many others like Tan who do their shopping online at
websites, auction sites and blogshops, with the last reaching out
to their target consumers via social networking sites like Facebook
and Twitter.
Since its inception in 1998, Malaysia's pioneer auction site
Lelong.com.my has seen an increase in consumers. Its director Wei
Kwok Seing says the rise was particularly apparent following the
introduction of broadband services in the country. Among the more
popular items traded are costume jewellery, accessories for ladies,
mobile phones, computers and notebooks and related parts.
A reason for the popularity of online retail is the convenience
— you sit at your computer and with a few clicks of the mouse,
you've completed your purchase. Then there's the promise of scoring
great deals. Public service website and e-mail newsletter
Scambusters.org says Internet auction houses make it easy for
people to find great deals on hard-to-find items from around the
world.
“The excitement also makes them prime hunting grounds for scam
artists who are ready to play on the desire many auction bidders
have for that ‘unbelievable deal',” says the site. It adds that
auction fraud accounts for roughly 48% of online fraud reports to
the US Federal Trade Commission.
Some of the scams include misrepresentation, failure to ship the
items, and piracy and counterfeiting. So, short of simply staying
away from auction sites or never shopping online, what can you do
to protect yourself? The most important thing, say online shoppers
and consumer advocates, is to learn the ropes. Here are some of the
things you should consider.
Paying with credit cards
Opt for the credit card rather than cheque, money order or bank
transfers. Sacmbusters.org says if you use your credit card to make
a purchase and you encounter a problem — and the seller won't
attend to the problem — you can notify the bank that issues your
credit card that you are disputing the charge, and you don't have
to pay the amount while your dispute is being investigated. And, if
the company doesn't deliver the item or it is a scam, you're in a
much better position to get your money back.
Lim Eng Seong, HSBC Bank Malaysia Bhd's general manager of
personal financial services, says while online credit card
transactions today can be considered relatively safe, consumers
should be mindful of ways to keep their credit card details intact
while making the transactions. “The five golden rules are: Ensure
the security patches are up to date, install reputable anti-virus
software with the latest updates, use personal firewalls, read the
[respective bank's] password advice, and use an anti-spyware
program,” he says.
Other payment options
For Tan and many other blogshop customers, bank transfer is the
conventional method of payment as many of the virtual stores are
usually home-based businesses and may not have the volume of
business that would make payment via credit card viable. While it
doesn't mean that you should stay away from such retailers, it does
mean that you need to do more homework and check out the seller
before deciding on a purchase.
Apart from credit cards and bank transfers, you can also
consider services like PayPal. By having a PayPal account (sign-up
is free, and you provide your credit card details) for instance,
you can make online purchases without exposing your credit card
number to merchants (for details, visit www.paypal.com/my).
Or you can also consider an escrow service. Basically, escrow
works as a neutral third party in your transaction. Lelong.com.my,
for instance, offers an escrow service called Safetrade (fees for
this service are as low as RM2) for both buyers and sellers.
Once the buyer initiates Safetrade, the seller is informed and
has three days to agree to the transaction. Once the two parties
have agreed to the transaction, the buyer makes the payment to the
third party (in this case, the operator of Lelong.com.my). Once the
payment is received, the seller is then instructed to ship the
item, and once the buyer receives the goods, the payment is
released to the seller's Safetrade account (for details see
www.lelong.com.my/safetrade).
Find out about the seller
Whether you're shopping online or in a traditional store, buying
from a reputable merchant ensures that the goods are kosher and you
receive the level of service desired (such as returns, exchanges or
warranties). Most websites and blogshops will have details about
the merchant (usually under “About us” or “About me”), so take the
time to check out the merchant's profile. Auction sites like
Lelong.com.my also provide the seller's profile and history, says
Wei.
Scambusters.org suggests that consumers check the feedback on
the seller. While it's a good idea to buy from a seller who has
many positive reviews, do use good sense when checking the ratings.
After all, a few negatives do not mean that a seller is out to
defraud you. Trust your instincts, says Lim.
“Search for previous and current orders, check for a valid
contact number and chat with the seller. See if it has a retail
presence. Talk to friends and see if they've bought from the
seller. Check reviews of the seller on other sites.”
Read the description properly
Whether you're buying from an auction site or a blogshop, read
the descriptions of the items carefully. Scambusters.org says if
there is anything in an item description that doesn't make sense to
you, or that just makes you wonder, don't brush it off. “That's
almost always a valid warning sign. Ask the seller. And don't buy
unless you're sure of the answer.”
Even if you've read the descriptions carefully, there are
occasions when they may not be accurate. Tan recalls buying a dress
from a blogshop, which described the armholes as being of a certain
size but turned out to be at least 12cm smaller. “I wrote in to
complain. The shop owner offered to give me a refund if I sent it
back but I ended up trading it with a friend, so it was not such a
big deal.” Tan adds that such incidences do occur when you shop
online as you don't get to try on the clothes.
If you're unsure, ask
Another frequent “blogshopper” is Sally, who says consumers
should ask many questions to clarify their doubts. She points out
that when buying clothes on blogshops, it's important to find out
the exact measurements. “Most, if not all, of these blogshops offer
measurements of ‘maximum inches' and that's simply not accurate
enough. Even though a top can be stretched to 40 inches, it does
not mean a person with a 38-inch waist would fit comfortably in
it.”
She recounts: “I bought two dresses of the same style in two
different colours. The items were in good condition but my
dissatisfaction was with the sizing. Both dresses were too small
for me. In fact, I asked a friend of mine, who was two sizes
smaller, to try them on and she felt that they were a bit snug. Not
only that, when I put both dresses side by side, I realised that
they were two completely different dresses. I was made to
understand in her (the seller's) description of the dresses that it
was the same style and came in different colours.
“I emailed my dissatisfaction to the seller, whose reply was
defensive. She claimed that the dress fit her perfectly and advised
me to read the measurements carefully the next time. My response to
her was ‘Next time? There won't be a next time. You just lost a
loyal customer'.”
Know what you're buying
This is particularly important when bidding for an item on which
you expect to make a profit later. So, be sure that you know
something about what you're bidding on, or get help from someone
who does, says Scambusters.org.
Keep records of your purchase
Once you've completed the transaction, be sure to print out a
copy of the transaction details (date of purchase,
details/descriptions of the goods, price and so on). You might need
it in case you need to return or exchange the item, or seek a
refund.
Check the privacy policy
Scambusters.org says it's important to check the privacy policy
of any website you plan to purchase from. “Make sure it has a
policy that says your data stay private, and that it won't sell or
rent your information to third parties.”
Be alert
Always be on the alert, to avoid being a victim of phishing
activities, says Lim.
“Phishing involves an e-mail message being sent out to as many
Internet e-mail addresses that the fraudster can obtain, claiming
to come from a legitimate organisation such as a bank, online
payment service, online retailer and so on. The e-mail requests the
recipient to update or verify his personal and financial
information, including date of birth, login information, account
details, credit card numbers, PIN numbers, and so on,” he adds.
To avoid getting phished, never respond to emails asking you to
“confirm” recent transactions.
“Reputable organisations do not send unsolicited e-mail messages
asking their customers to update or verify their personal and
security details,” says Lim, adding that when one is in doubt,
contact the organisation in question immediately.
-- Yahoo!