Source: Straits Times, Life. Sunday, October 19, 2008 by Frankie Chee

Net Gains

Shopping online these days is not only easier, but it helps you save money, too 

Amid the financial crunch and long faces, there is a silver lining for bargain-hunters. This economic downturn wull be like no other - in the way savvy Singaporean can save bucks by shopping online, that is.

The savings to be had from clicking on  mouse can range from a dollar or two on DVDs or books to hundreds of dollars for electronic items.

Sure, inline shopping is not new, nut unlike 2003 when the last big downturn hit Singapore - what with the Sars epidemic and Iraq war - it is now a lot easier and attractive to do so.

This is the case whether you are buying something here or off websites in the United States, despite the drawback that most merchants there do not accept credit cards issued outside America. Also, most do not ship goods outside the US.

However, local "concierge" services such as ComGateway, started by DBS Bank in 2005, along with Globeshopper and also vPost - launched by Singpost about five years ago - have spring ip to ensure scam less cyber-shopping for Singaporean. They provide customers with a domestic shipping address in the US to enter on the merchant's website when ordering goods online. The orders are then delivered to that address and the conceige service ships them to Singapore.

Another factor making online shopping more attractive is the cheaper US dollars. back in 2003, one Singapore dollar was worth about 57 US cents. But these days, a local dollar buys you 68 US cents.

So anything from music CDs and clothes to kitchenware is now both cheaper and easier to obtain,

Sales manager Eugene Lim, 29, has saved a bundle by buying goods online from US. "I have been shopping online for the last three years and I save 40 to 50 per cent, compared to what I'd pay locally. I have bought books, CDs and DVDs that cost half of what they cost in Singapore.

Human recourse assistant Fanny Neo, 23, who buys from American women's fashion brand www.forever21.com once every three months, is attracted not just by its newer and wider ranges "but most importantly, it is because I get to save money as the clothes are much cheaper".

Consumer can save even more when they pool their overseas online purchases to reduce shipping cost. such enterprise even has a name: an online spree group.

Public relations associate Cheryl Chan, who joins online spree groups of between eight and 12 buyers, says," I can save up to SGD 30 a dress just by joining the groups." The 22 year old makes a purchase at Forever21 every three months.

There are pitfalls, too

Singaporean are really clicking with concierge services.

Citibank, which introduced Globeshopper, atie-up with logistics from DHL and e-commerce solutions firm Borderlinx, has seen sign-up growing by thousands each month. More than 10,000 people have signed up since it started in March.

Citibank Singapore's head of portfolio management and sales Jacquelyn Tan says: "Our shipment volume has increased significantly since the launch of Globeshopper. Our monthly sales is a mid-six figure every month."

Still, there are pitfalls.

Some products such as DVDs, TVs and games may run on a different electronic platform or code and will not work in Singapore. Not all warranties are international either.

While some goods may be cheaper, add shipping costs, say, SGD20 for a kg package from the US and it might not add up to a saving. So buyers have to do their sums thoroughly. However, shopping several items together will bring down the cost.

Borderlinx's concierge service is free and users pay only for the shipment; ComGateway charges a 5% per cent fee on top of shipping charges, while vPost imposes a base charge of SGD13.24 plus shipping charges of SGD9.16 per kg.

And if you urgently need that high definition Blu-ray disc player - the latest thing since the DVD player - then online shopping may be too slow as shipments can take a week or more.

Also, some parcels have been known to go missing. Mr Lim laments: @Bad experiences would be shipping online with vPost-USA. Very slow shipment to arrive, there was a slow customer service response, misplaced packages and lousy online interface.

Indeed, a check on home theatre and hi-fi online forum XtremePlace found several complaints about vPost services.

The company declined to comment.

There is also the worry that the item may break in transit. Insurance, especially for pricey items, is advisable. All Borderlinx shipments are automatically covered up to USGD10,000. Insurance for the other two services is optional and costs between 3 and 5 percent of the goods' value/

Still, it might be worth it. Your cargo is coming a long way, at a time when it is important that every cent goes a long way.

Additional reporting by Jocelyn Lee and Cheryl Tan