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Black Friday bargain hunters crash David Jones website

Online retailers are feeling the force of frantic Black Friday bargain hunters wanting to score the best buy. David Jones has joined a list of global websites that have crashed in the chaos. SEE THE BEST DEALS.

How to grab a bargain on Black Friday

Black Friday is finally here and with it the website of one of Australia’s largest department stores has crashed.

The David Jones website succumbed to the high amount of bargain hunters flowing through, trying to access deals of up to 60 per cent off, about 11am today.

While it was momentarily offline and now back up and running, it has been one of several experiencing issues globally.

Before the Black Friday fun even started, the Nordstrom Rack and Costco websites in the United States went down, with many sales enthusiasts turning to social media to vent their frustrations.

Online shoppers are expected to spent more than $7.6 billion in the Australian Retailers Association’s “Other Retailing” category, according to executive director Russell Zimmerman.

In the lead up to Christmas, he added Australians were expected to spend $53 billion.

“In 2018, Black Friday and Cyber Monday brought spending forward, as the week following the sales saw more products delivered than the first week of December, the usual online shopping peak,” Mr Zimmerman said.

“Many Australians are no longer waiting until Boxing Day for a bargain, while many have written their lists early and jumped online in search of the perfect gift to make a very Merry Christmas.”

Australian Retailers Association executive director Russell Zimmerman.
Australian Retailers Association executive director Russell Zimmerman.

According to Australia Post, fashion accounted for 27 per cent of all online purchases in 2018, while beauty and cosmetic products had a huge boost during Black Friday and Cyber Monday.

And if you are looking abroad for an even better deal, experts are warning to think twice about who they buy from – and the costs involved – when purchasing overseas.

Freight-forwarding services such as MyUS, Shipito, USA2ME, US to OZ and Big Apple Buddy have seen a surge in popularity because they let customers buy from overseas websites that do not ship to Australia – giving them access to potentially cheaper prices and a wider range of products.

Australia Post has its own freight-forwarding service – ShopMate – which has seen 15 per cent annual growth over the past three years.

ShopMate last year forwarded $9.67m worth of American goods into the country.

With Australians expected to spend $53 billion in the lead up to Christmas, freight-forwarding services have been marketing themselves to customers as a way of grabbing an even better deal.

But while overseas markets may sell different products or offer them at a cheaper price, consumer finance expert Lisa Montgomery urged shoppers to think twice before spending with these foreign retailers.

“It’s really important to do your research on brands and buy from a retailer with credibility,” she said.

“Know the product you’re buying, know its price and look at the conversion rate if shown in a different currency.

Consumer finance expert Lisa Montgomery. Picture: Supplied
Consumer finance expert Lisa Montgomery. Picture: Supplied

“Check to make sure you’re actually getting a good deal and there are no additional fees. It’s very important to read the fine print too and check whether you have the option of returning what you buy.

“I think people can get too caught up in the moment and frenzy, and may buy things that aren’t that great of a deal or that they don’t need.”

Many brands do not ship internationally from the US including Adidas, Billabong, Skullcandy, Apple, Nike, Old Navy Vans and Walmart.

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While some have Australian stores, the range of products and deals available can differ.

At first glance, these appears to be a bargain for shoppers.

Ms Montgomery warned that shoppers need to be mindful of the shipping costs involved, if any, as well as conversion rates of the currency they are shopping in and added GST.

Since July last year, a goods and services tax of 10 per cent applies to all products bought overseas, even on items worth less than $1000.

On the US Nike website, the Airforce 1 Mid By You shoe is listed for US$115 – compared to $180 in Australia.

But after currency conversion and GST, this price blows out to more than $185 for Australians.

Nike's <i>Airforce 1 Mid By You</i> shoe. Picture: Nike website
Nike's Airforce 1 Mid By You shoe. Picture: Nike website

Then shoppers have to add on the cost of freight-forwarding services like ShopMate, which charges on the parcel’s weight and dimensions.

ShopMate charges a $A25.25 base shipping rate per parcel, plus $A5.45 weight rate per 500g.

But that is not to say a bargain cannot be found.

Skullcandy wireless headphones – selling for $299.95 in Australia – are available for $99.99 ($A147.52) online in the US.

Skullcandy wireless headphones offered on its American site. Picture: Skullcandy website
Skullcandy wireless headphones offered on its American site. Picture: Skullcandy website
Skullcandy wireless headphones offered on its Australian site. Picture: Skullcandy website
Skullcandy wireless headphones offered on its Australian site. Picture: Skullcandy website

Ms Montgomery said the most popular big ticket items included AirPods, Dysons and game consuls, as well as other items priced between $500 and $1500.

She added online and broad shopping was particularly popular among young people.

However, older consumers sway towards seeing the item first-hand before making a purchase either in-store or online.

“Certain demographics, who really look for particular items not available in Australia, take advantage of Black Friday to purchase what they want … because not only will they get something that’s not available on home soil but they’ll get it at a discount price,” she said.

The latest research from Vend and YouGov has found 63 per cent of Australians plan to shop at independent stores this Black Friday.

In 2018, shoppers spent more than $10.6 million in stores across the nation – 16 per cent more than what was spent in 2017.

ShopMate’s international product specialist Lucy Watson-Jones said fashion and accessories was the biggest hit among customers.

Kelly Walsh, of Hamilton, and Jo Rodd, of Mango Hill, capitalising on the Black Friday sales. Picture: Liam Kidston
Kelly Walsh, of Hamilton, and Jo Rodd, of Mango Hill, capitalising on the Black Friday sales. Picture: Liam Kidston

Ms Watson-Jones added the biggest challenge faced at ShopMate was the lack of understanding on how the service works among customers, and where it fits into a transaction.

“The first interaction shoppers have in buying a product in the US is with the merchant,” she said.

“Until it arrives at the ShopMate address in the US we are unable to see the order.

“ShopMate is not part of the initial transaction so it can get tricky if items are delayed, damaged or don’t arrive.”

PAYPAL’S SHOPPING TIPS

1. Look for the lock: When shopping online, check to make sure the site is secure by checking that the web address begins with https:// and includes a padlock icon. This indicates that the site has security features in place.

2. Get in early: While you may not be able to see the queues online, they are definitely still there. Make sure to set your alarms this Black Friday to snap up the best deals because they won’t last long.

3. Choose your network wisely: Whether you are shopping on your mobile, desktop or tablet, avoid using unsecured public Wi-Fi networks, as connecting to these networks may open you up to the risk of hackers accessing your personal information.

4. Shop ethically and give better: As consumers, we now have the purchasing power to avoid brands that have a negative impact on society or the environment, and reward those that align with our values. In fact, PayPal’s 2019 mCommerce Index revealed that over half of Aussie consumers (55 per cent) are identified as ‘Conscious Consumers’. This Black Friday use your purchasing power to support brands that are having a positive impact.

5. #buyfromthebush: With eastern Australia facing one of the worst droughts ever, you can support rural communities and #buyfromthebush to access beautiful Australian gifts this year. Check out their Instagram page for some beautiful present inspiration.

6. Do your research: Before purchasing from a new online vendor, get a second opinion by reading reviews to ensure a nasty experience isn’t heading your way. PayPal’s 2019 mCommerce Index found over a quarter of Australian consumers (26 per cent) trust customer product or service reviews more than advertising and 70 per cent of Australians have posted a review in the last 12 months – take advantage of this growing trend to make sure you’re getting what you pay for.

7. Follow your favourites on social media: PayPal’s 2019 mCommerce Index revealed that more Aussies are shopping through social media than ever before and brands are increasingly using it to promote deals. If you’re not already, make sure you are following your favourite brands on social media so you can be all over their best deals in the lead-up to peak sales periods.

8. Find all the deals in one place: Online marketplaces like eBay provide a one-stop-shop for all of the best deals. The best bit? You can shop with peace of mind with eBay Money Back Guarantee which ensures you are protected if the item you ordered didn’t arrive, is faulty or damaged, or doesn’t match the listing. You’ll get your money back.

9. Use a price comparison tool: Use online tools such as Google Shopping, PriceGrabber, NexTag or Pronto to help you quickly determine if you’re getting the best deal before you hit purchase.

10. Use secure payment providers like PayPal: With PayPal, not only checkout quickly but you can rest assured that your financial details will be protected. If something does go wrong, PayPal will also help you take care of any unauthorised transactions. With PayPal, you can also get free return shipping which is always a plus if you’re speed shipping in a sale.

11. When in doubt, delete it: Online marketing campaigns are more common than ever at Christmas time. Sometimes these are a great way of getting a good deal, but be wary of suspicious links in emails, social media posts and texts, as cybercriminals often hide behind the branding of legitimate businesses when attempting to steal your information.

Original URL: https://www.dailytelegraph.com.au/news/national/how-to-avoid-international-online-bargains-going-wrong/news-story/5262f6d89c365323f5a751a9b4ccbf0d