Business @ AsiaOne

Save with online shopping sprees, but beware of risks

Some spree organisers have been known to cheat buyers, either replacing the items ordered with fake or cheaper items, or simply running away with the money.
Chua Hian Hou

Tue, May 13, 2008
The Straits Times

Get together with other like- minded shoppers online to buy products via 'sprees', or Internet mass orders, to enjoy cost savings. You could even pick up exotic items not otherwise available in Singapore.

In recent years, such sprees have spread like wildfire.

On the SingaporeMotherhood.com site, for instance, you can go on dozens of sprees for health supplements, branded baby clothes and educational toys.

At HardwareZone.com forums, mass orders for computer parts, Crumpler laptop bags and Bluetooth headsets are abound, while car forums offer deals on Mugen bodykits and leather steering wheel wraps. Even classified ad websites like ST701.com have got in on the act, organising sprees for fashion labels such as Gap, Old Navy and Victoria's Secret lingerie.

The appeal of sprees is easy to understand - you enjoy lower prices at online merchants than at the shops, and you can share the cost of shipping the items to Singapore with others.

Another bonus: Banding together with others can get you further bulk discounts that individuals will not enjoy.

In addition, with the Internet, Singapore shoppers are no longer limited to what local merchants choose to bring in.

Capitalising on this trend are new logistics services, such as ComGateway.com, that help online shoppers ship in goods at less than what the merchant would charge.

But while sprees are attractive, there are risks.

For example, a warranty issued by an overseas merchant might not be honoured by the local distributor. If you have problems with the item, you would have to send it back overseas, possibly incurring significant freight charges.

Sometimes, items arrive damaged - or not at all, having been lost in transit.

Some spree organisers have been known to cheat buyers, either replacing the items ordered with fake or cheaper items, or simply running away with the money.

Probably the most sensational case in Singapore involving a runaway spree organiser was in 2006, when 24-year-old Goh Chin Soo ran sprees on popular car forums.

He claimed he could get car accessories at amazingly low prices, and convinced many car aficionados to hand over thousands of dollars. He eventually ran away with the money. Although he was subsequently arrested, he jumped bail and is currently at large.

The lesson? Be careful of deals that sound too good to be true.

There are ways to protect yourself from scams or, at least, minimise the risks. For instance, join sprees on sites that have already run some checks on the organiser. If you are not in a hurry to get the item, wait and see how a spree by a particular organiser turns out; if it goes well, join his next one.

Finally, be sure there is a solid audit trail to follow in case things go wrong. For instance, get the organiser's mobile number, pay via an online banking service, and keep the transaction reference numbers and the organiser's bank account number.

Sprees can be found on the message boards of many community and hobby sites. For instance, fans of Japanese animation can try sgclub.com's anime and manga sections.

A good way to find a spree is to check out popular websites and their forums. Keywords to search include spree, bulk order, mass order and group buy.

The organiser will usually set certain rules that stipulate, for instance, the foreign exchange rate he will charge if the purchase is from a foreign website, the payment methods, how shipping charges will be shared and local collection points.

Once you have checked the rules, you can register for an account. You post what you want to buy and also your contact details. The organiser will usually contact you to finalise the deal.

Most organisers want payment upfront, typically via an online banking service. The reason is that there are no fees for online banking transactions between individuals.

At the same time, buyers get peace of mind because the money trail should lead directly to the seller if something goes wrong with the spree.

After the spree closes, it might take a while - several weeks, in some cases - for the merchant to process the order and ship the items to Singapore. Once the organiser has collected the items, he usually updates the original spree posting to inform the buyers that the items have arrived and to arrange collections.

Typical collection options include normal post, registered post or self-collection. Self-collection is the cheapest, but organisers usually have pre-determined collection points and schedules. Normal post is cheap but not as reliable as registered post.

This article was first published in The Straits Times on May 11, 2008

 
 
 
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