eCommerce - Shopping online - Buyer beware!

I have been recently looking for a HD camcorder and found one I liked.

Ok, simple enough you might think, but if you go online there are any number of websites offering what look like bargains.

I found one recently which had a great price - over £50 cheaper than its nearest rival.

However, when I looked more closely, I found that although they had a local rate phone number listed for you to call about enquiries, it was not obvious where the site operated from.

I looked into the terms and conditions page and found they are actually located in Hong Kong!

Now, this raises several issues.

1 - If a high value item is imported into the UK (and presumably elsewhere in the world), the goverment slaps on import duty (around 3% for cameras) this duty is payable on not only the value of the goods, but also the cost of shipping! Now, add to that VAT (sales tax) (currently 17.5%) which goes on the value of the goods, the cost of shipping AND the import duty. What initially looked like a £50 saving turns out to be over £100 more expensive than buying from a site where the goods are already in the country!

2 - Should the item go wrong, you have the cost of shipping this item back to Hong Kong - or wherever else with the delays that ensues.

3 - As the item is a "grey import" it may well be that the manufacturer will not be interested in any guarantee.

4 - As a "grey import" it is highly possible that specifications do not match current standards for that kind of product in your country.

In the UK, a site will state that whether or not the item includes the VAT (sales tax) - always look out for this.

When you are finally ready to place your order online always make sure that the part of the site where you pass over your credit/debit card details is part of a secure server connection - this will be easy to spot as the web address will start https rather than just http.

If you are in any doubt over a deal being offered, it is usually too good to be true and will end up costing you far more than you thought.

There are some sites that operate from the Channel Islands and where the item is of low value - (DVD's batteries etc), VAT is not usually charged, and if the order is made up of several items, the companies usually break the order up into several packages to keep the consignment value low.