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Online shopping: Is it really a threat to the Oz retail sector?

What's your opinion of online shopping?

  • Online shopping is a threat to Oz retailers.

    Votes: 1 4.5%
  • Online shopping is not a threat to Oz retailers.

    Votes: 4 18.2%
  • If the price is cheaper, I'll buy online.

    Votes: 9 40.9%
  • Stuff the major retailers, they have driven small business into the ground.

    Votes: 6 27.3%
  • If I have to buy a product in Romania that is cheaper, I will have no hesitation in doing so!

    Votes: 2 9.1%

  • Total voters
    22
  • Poll closed .
WRONG.

Telstra has no call centres in India.

Sorry TH, I thought Telstra was one of the many businesses that out-source their customer service depts'.
Must have been another mob that was in the news for doing the same...Cutting back on the local work-force, only to move them [jobs] offshore.

I know I've had frustrations with some of these call centres before.
They appear to speak good English, but still don't seem grasp the concept of what I'm trying to say...Then 'the penny drops' when it's revealed that they're in Mumbai, amongst 4000 odd people at one call- centre, before I hang up out of sheer frustration at being transfered for the fifth time & starting over.

Vicki
 
I run an ebay business so are you talking about cost price or another ebay (chinese) seller?
Cost price from the factory = about $250 according to most estimates. This is the price the factory would sell to a bulk purchase customer (not their actual production cost which would be lower).

Price from ebay seller = $510

Retail at a "bricks and mortar" store = up to about $1600 but some are significantly less. The cheapest I found was a bit over $1000.

Without being too specific and identifying businesses, the item in question is an "off the shelf" electrical/electronic item that commonly leaves the factory by the shipping container load. Essentially it's a manufactured commodity item.
 

How likely do you think it would be to set up warehousing in India or China? It doesn't sound cheap to set up. (good on him if he does).

Gerry and our retailers here don't have very good websites for purchasing goods. While Gerrys point is valid I don't know how gst could be enforced on so many packages coming from overseas. And government sure as heck is not going to remove gst for sand stone retail.

It's a losing proposition for Gerry either way. Aussie retailers have been very slow at coming up with decent online web stores.
 
There is an interesting aside to this, that is, if you want cheap fares you get cheap service. We also need to be careful how far we go to the cheap side of the fence.

.
Very good point. I'd rather pay a bit more and have recourse if something goes wrong. Aren't you going to be disinclined to post something back to the other side of the world if it falls apart, rather than take the faulty article into a store and speak to someone face to face?

WRONG.

Telstra has no call centres in India.
Well, I sure as hell have encountered multiple Indian accents (quite unintelligible often) when phoning about a fault or looking for information.
Perhaps they have purely Australian call centres purely staffed by people who lack the capacity to communicate in English.


Shopping for food and clothes at a store may become a thing of the past.

Do you think so? I'd always want if possible to be able to see what I'm buying.
Just one example in this stone fruit season. If you just ordered a kilo of nectarines, you'd probably get those bullet hard things that go off before they ripen. Waste of money.
I'd also want to try on most clothing.
 
Beatles box set in mono JB HiFi online $369
Amazon DHL to my door $210 from Canada 5days
$159 to blow on booze and listen to new CDs
 


Books and other things under $300

I have had no problem getting refunds
Did not even have to return the goods when they arrived damaged
and in other case never arrived..

And have found significant savings, availability and convenience..

So Vendors online have reputations and good will to protect too
If they are smart......

Of course no doubt .. There are bad ones also

Online for many categories is the future more an more

eg Premium Wine and Spirits ==>The local bottle shops do not ever stock them.

Motorway
 
One point that I think is being missed, isn't it the same manufacturers and suppliers that are selling online that are also supplying the retailers.

Anything you can buy in a store can now be bought online, who is supplying the online stores.

Don't tell me that the stores haven't figured that one out, they don't want to fight with their suppliers to limit online supply so they try to get our silly pollies to do it for them.
 
Yes its a threat, which is a good thing. But imposing extra taxes on imports (protectionism) is good for Harvey and bad for the rest of us. Harvey can take a jump.
 
A few years ago.

TimeRanger metal detector bought online from America for about $530 AUD including freight from Kellyco.
TimeRanger metal detector exactly the same for sale $1250 AUD in Brizzy.

The dude more than doubled the price and would have imported them cheaper than I. Plenty of bozos cough up for imported goods unknowing they can import for less themselves. The good part of the W.W.W.
 
Thats probably the case. After all its is a very poorly managed company.

Yes I'll buy everything I can online but for my weekly Fruit & Veg and (meat, fish, cheeses) I need rub the flesh. Actually like the whole market day process.


One point that I think is being missed, isn't it the same manufacturers and suppliers that are selling online that are also supplying the retailers.

Anything you can buy in a store can now be bought online, who is supplying the online stores.
Xactly. I can understand differences in pricing when our AUD moves up so fast as they have inventory and contracts to fill but it seems the local retailers take a very very long time to adjust prices, if at all.

And have you ever tried to order something from a store in the US that ships internationally but says "we cannot ship that brand OS"!!!
 
A couple of months ago I called Telstra regarding my Bigpond account. The lady I spoke to had an Indian accent and I asked her where she was located. She said Bangalore.

She may of been born in Bangalore but she wasn't speaking to you from there. My partner is a senior Exc at TLS. And assures me that that they don't have any call centres there.

They did for 6 months have one in the Philippines.
 

There are more costs then just what the factory price is. You got duty and customs (which is heaps) and just because it's an online business doesn't mean there are no overheads that they take into consideration...
 
If it's cheaper online, I would always want to purchase and pay less.

But here's a couple of hypotheticals

To what degree will the 'therapeutic' element of shopping and the public show and/or public transaction of shopping diminish through online discounting?

I wonder how online retailing would fare if the Australian dollar bought say 70 US cents?

Julia raised a great point earlier about clothes. Does everywhere outside of Australia have a returns/replacement policy? If the goods you'd purchased from outside Australia, are not fit for the purpose intended when you decided to buy them on-line? What recourse does an Australian consumer have to get their money back without getting tangled in a bunch of foreign legalese? Of course in the absence of a decent Fair Trading, Consumer Protection and/or Trade Practices Act? Could this be a problem for consumers?

Does online shopping from overseas based retailers pose a "buyer beware" element?

Just throwing stuff out there

cheers
Gumby
 
Surely for every new Harvey Norman store that opens and 'creates' new jobs, there's X number of small businesses that suffer and shed jobs in the immediate area.....also are Harvey Normans products manufactured in Australia in order to protect and create employment locally? Or do they import all of their goods from Asia just like the rest of us?

Level playing field...what a load of bollocks.
 
http://thingsboganslike.com/2010/12/13/202-gerry-harvey/

 
What a great post/article.

I remember Gerry saying some years ago, on the subject of achievement & personal success, that If you haven't kept up with the pack, or even been the 'leader' or innovator in your given industry, and found true success by age 30, then you probably never will.

Well, It now appears society & the WWW, have moved-on and are threatening to leave Gerry behind, and so all he can do is bleat about it, rather than follow his own business acumen....Assess what the market wants, or how it opperates, and be the 'leader'.
Or at least keep on the same page.
Sorry Gerry, but that's business, keep up or perish....Or maybe you should retire & just enjoy your true passion...Horses.

Vicki
 
She may of been born in Bangalore but she wasn't speaking to you from there. My partner is a senior Exc at TLS. And assures me that that they don't have any call centres there.

They did for 6 months have one in the Philippines.
Not sure what it was, but I'm fairly confident I've seen a building with Telstra signage in Bangalore within the last 12 months. Back office functions (billing or something?) perhaps?
 
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