Restrictive Sales Practices on the Web? 736
"Here are a few examples:
IBM, Apple and Dell operate web stores that sell almost their entire range of kit, they only ship to the USA. Power Notebooks have the same policy but cite different reasons (see below). Some manufacturers have local country websites but these offer a restricted range compared to the main site.
Apple has their new iTunes system. As I am outside the USA they will not let me logon to the system.
Amazon.com are willing to sell me books but nothing else.
The reasons for this policy range from the (almost) reasonable to the downright silly. Amazon cite difficulties with warranty returns as their reason and while most of the rest won't tell me why they don't want my business Power Notebooks told me that recent anti-terrorist legislation stops them from exporting equipment. Quite why they cannot export a notebook originally manufactured in the Far East is beyond me.
Getting the kit to me in Hungary is no problem either. FedEx and UPS have local offices and if that fails there is always the Hungarian Postal Service. Shipping time from the USA can be as short as two working days, I know this because my company obtains spares from the USA for our products."
Fraud (Score:5, Interesting)
Let me sum it up in one word... (Score:5, Interesting)
Hungary is one of about ten countries worldwide that are responsible for a whopping 55% of credit card / bank / wire fraud. Serving the few legitimate customers in these ten countries often takes a back seat to preventing $3000 laptops from disappearing into the ether.
Sad but true. Even in the U.S., where our large cities are cesspools of scams and larcenies, the authorities have a better handle on the situation (mostly because the police forces here are rarely in cahoots with organized crime).
Brokers? (Score:5, Interesting)
Is anyone aware of any brokers who specialise in buying stuff from US web sites, shipping it to a US addess, then forwarding it to an international address?
Fraud and accountability (Score:5, Interesting)
In each instance the cards and billing info were from overseas. None yet from within the US. I'm guessing that credit card fraud is a little more common in other coutries.
For us it's not a really big deal. We shut off the accounts and refund the money. However, if we were actually shipping a physical product I'm not sure we'd be as willing to deal with customers from overseas.
Credit card companies (Score:5, Interesting)
No major credit card company will validate a credit card from one country to the next. Hence, if I live in Canada, and want to purchase a product from a company in the UK, Visa (or Mastercard, Discover, American Express, etc) won't do a check on my credit card for the company in the UK to ensure that I'm the cardholder, that my address & postal code match, etc.
If credit card companies would allow cross-border validation to occur, online commerce would see an enormous increase in activity. Unfortunately, fraudulent purchases would be one of those increases, hence why the credit card companies won't budge. If there is a solution to the fraud issue (.NET? Liberty Alliance?), then convincing the credit card co's/banks/financial institutions to allow cross-border validation would be much easier...
Re:Fraud (Score:2, Interesting)
I think there is a difference in the people's attitudes about product warrenties in some of the former eastern block countries. A coworker of mine is married to a Ukranian, and she was telling us one day about how American style warrenties would not work there. To a Ukranian, a 3 year warrenty means that in 2 years, 11.5 months you bring your product back in for a replacement no matter what.
other possible reasons (Score:5, Interesting)
danmark has 25% VAT, and germany 13% (VAT = sales tax); to equalize final prices, car manufactures price the cars so that the final price (after the VAT) is about the same in both countries.
a lot of germans used to go over to danmark, buy a car, go back to germany (get a refund on that 25% on the way out of danmark) and pay the VAT for germany. pocket a good chunck of change.
manufactures were not happy about it, so that changed in a zippy (lobbied some legislation, IIRC).
so, for example apple products are 30% more expensive in japan than the US. I can't imagine them being happy about me shipping a powerbook over here.
on the other hand, amazon japan seem to be all for shipping things to the US, though - any maybe to other countries like hungary too; so maybe give them a try.
Re:Fraud (Score:5, Interesting)
In other parts of the world... (Score:2, Interesting)
Fortunately, a few local companies (it's been mostly airlines here) have realized this is good business and so have created the service for anyone to use. You pay with your card, set the shipping address to some US P.O. box they give you (usually in Miami) and once it gets there (transparently for the vendor) they take care of getting it to your house, charging you for all the taxes involved, checking all relevant regulations, etc (obviously you pay a little more for the service but There Ain't No Such Thing As Free Shipping). This is extremely understandable and is, I believe, the way to go (except for the LARGEST companies - I'm sure, say, Amazon could afford to ship here).
(What DOES remain a problem is when they definitely do NOT take any sort of international credit cards. I mean, you HAVE to pay some way! Hello, this is not a fraudulent country!)
iTunes Music Store (Score:3, Interesting)
Re:Sounds like a market opportunity to me (Score:2, Interesting)
Ever browse Ebay? So many items are "Will Ship To Continental U.S. Only"
Same problem all over again.
Same trouble in Japan (Score:2, Interesting)
Some of this is probably due to trade restrictions, but I can see little difference between selling a DVD and selling software, though they are probably handled by seperate trade laws and agreements.
Hello McFly? (Score:5, Interesting)
Along the same lines.... why is it that Amazon will ship this person books, but nothing else? I can see region coded DVD's, but not CD's, or consumer electronics?
In this day and age, if a country is willing to ship some products overseas, there really isn't a reason why they can't ship all of them. They've already got the infastructure in place, yet they aren't fully using it.
I have it. (Score:3, Interesting)
That just leaves services like iTunes. I'm sure Apple would not take too kindly to that service being proxied. But what's the harm in a merchandise proxy service? Not that I'm too interested in getting into that. Sounds too complicated for me (read: I'm just the idea man
Re:The real reason (Score:2, Interesting)
Re:Hello McFly? (Score:1, Interesting)
European Union (Score:2, Interesting)
Re:Let me sum it up in one word... (Score:5, Interesting)
In the last three years I've been deployed to the Balkans twice by the US Army. I go nowhere without my laptop. But good luck trying to get updated software or Accessories, As the original article mentioned Amazon will at least sell books and movies, but little else.
The last time I deployed I had just purchased a new laptop, and realized after I was enroute that Norton System Tools 2002 did not support the XP the system ran, so I tried to order Norton System Tools 2003. Nobody would ship it, and it the PX didn't stock it. I ended up ordering it to my home and having my family send it to me. The same issue came up when I decided I wanted an ergonomic keyboard. Unable to ship the Norton, I could kind of understand as there maybe some export restirctions for some reason, but a funky shaped keyboard? And I have to note that all this stuff was being sent to my APO address. All I should have had to do was find companies that used the US Postal Service as all APO's are treated as stateside mail addresses. No Luck and again the Post Exchange(PX) system's lousy tech selection didn't help me either. Supposedly anything I want the PX has it online, right. At least Amazon would send my books and most important my DVD's quickly. (Hint to anyone deployed or looking at getting deployed, when ordering to an APO select the cheapest shipping option, they automatically upgrade it to first class mail at no charge.)
Try to order something of an electronic or software nature to an overseas address. Most online retailers have their systems set up to serve only the US and maybe Canada. They aren't limiting to trouble countries like Hungary, they usually won't even give any shipping option or purchase option outside the US, not even to APO's which are legally considered stateside addresses.
Again as I said above, I can understand it if the merchants are forced to balk on some items with export restrictions such as encryption restrictions. However, instead they have made it a blanket blockage on items that don't fall into those categories.
Okay you say, but I've just mentioned difficulties with APO addresses using US mail, and what about other forms of shipping. So add the higher shipping charges as necessary. UPS, DHL FEDEX and other shippers do ship overseas. I will grant some difficulties due to customs tarrifs, but wonder how much a burden that really is considering how widespead the aformentioned delivery companies's operations are.
Determining the shipping charges may take some additional time, but thats easy to handle. Simply put into the transaction software a point where the purchaser may have to wait a brief time until the purchase and shipping charges can be confirmed and then emailed to the purchaser with a link back to the purchase to complete the transaction.
In conclusion I agree with the Original Article, in this day of international commerce and the World Wide Web why can't we get basic electronics software and computers and components shipped overseas?
Re:"Can't be bothered..." (Score:5, Interesting)
It is my understanding based on information from the mid 90's that DHL operates in those countries with a very large internal blacklist, and hired a company to go and do a physical address survey in areas well known for fraud. Something on the order of 90% of shipments to certain third world nations were fraud, and 50-60% in eastern bloc countries for non B2B shipments. Fraud for B2B was still high in parts of Africa.
I would not be surprised at all if FedEx and UPS and other international shipping companies have experienced similar problems.
You can't really blame a lot of businesses for not being willing to take the risk. If you are selling laptops and making $100 a piece on them, losing 6 out of 10 you ship will put you out of business in a hurry.
The only suggestion I have for you is to call the merchant and arrange for a B2B style delivery. Reluctant merchants are far more likely to ship to a business they can look up and verify exist than a private address.
Re:"Can't be bothered..." (Score:2, Interesting)
First, you must be able to ship there. OK, maybe that's no problem, though the unit cost'll be pretty high and insurance may be necessary (and also pretty expensive) because of package loss problems mentioned in other threads.
Second, you must know what duties and taxes to pay on the shipment. And you'll have to keep up as tariffs change. This must be done for each country that you want to ship to.
Third, warranties: If you're a retailer like Amazon, you may not have much say in removing warranties. Additionally, different countries have different laws about how much warranty is inherent (as do different states in the U.S., and for that matter, probably different states, provinces, federal districts, etc. in other countries). So you'll need a legal framework (for each country/region/province/whatever, mind you) to handle the finer points of warranty law; this must also be kept up to date with the most recent laws.
I'm sure this list is not exhaustive.
The volume is likely to be much lower for overseas shipments than domestic shipments, especially for small companies, meaning that the overhead in two and three can't really be rolled into the unit shipping costs without pricing yourself right out of reasonability.
It's one thing if you've got a presence in the country. But if you don't, it's probably not that reasonable to try to ship to that country.
Matt
Re:Fraud (Score:3, Interesting)
It´s not any better in Europe (Score:5, Interesting)
Try using Western Unions website to send money from France to Holland for example. Cant do it. You cant even call them and use the phone service. Its all for U.S. customers only.
There are loads and loads and loads of examples. Even more often its for stupid reasons, like it requires a phone number, and when you enter your phone number it comes back with "Oops youve entered too many digits for your phone number. Please enter your full 10 digit phone number with area code first" The same problem exists with postal codes.
European websites dont have this problem. Its just the American ones. Its quite frustrating, as I am also American, and would often like to order stuff from there. I usually just bring an empty suitcase when I go just so I can bring back what I cant buy over the web.
Not getting more US centric (Score:3, Interesting)
No, that is most companies trying to sell a product in thier country on the web.
For example, I race radio controll cars. Japan has the newest and more "professional" kits (carbon fibre, titanium, etc). Many not available in the US because of tarriffs - companies just don't have enough demand for them at the price. I make enough and want one. Unfortunatly it is VERY difficult to find someone that will ship what you want, replacement parts, and other misc items needed to run the car to the US.
One of my friends like "foreign" films (not made in the US). He has players for the regions he wants. It is difficult to get many of the DVD's shipped to the US.
There has never been the implication of everything on world accessable servers to sell to the world, wasn't using gopher, usenet, or the web - all of which had parts that were world visisble. In fact, it is not horribly uncommon to find web sites that will not sale outside of thier states as they do not want to deal with fraud issues and legalities between states, let alone international.
Apple is more limited in sales (Score:5, Interesting)
Clearly, the Vilnius operator just consolidates #2 for those who don't want to go to Warsaw.
Aside from that, there are still the issues of international law, taxes, tariffs, and dealing with criminality. Quite simply, if you send something valuable through Lithuanian post, it has an excellent chance of disappearing, computer equipment especially. Apparantly international studies point one finger (bribes) at the Customs department, but local people say no, it's the post workers themselves. I myself am kindof divided on the issue: I don't really know where the stuff disappears, just that it definitely does. I also know that I had tons of trouble even getting stuff through UPS, and UPS did not even inform me that it was held up! I had to start calling around, asking pointed questions before I finally found the item, convinced them that there was no legal way to apply a tariff, and they then sent it on. Note that they did not even send a note asking the intended recipient for the product. It seems they were just going to delay it until a time limit ran out, and take it. And UPS did not seem to have any ability to help, except to tell me where in their system the package had disappeared.
But that being the case, there's not a lot of point in paying a 500% insurance rate on shipping. Maybe it's the same in Hungary.
get a friend to do it (Score:2, Interesting)
Re:The reason is (Score:5, Interesting)
The main reason comes because of taxes, warrenties,customs,shipping and other legal problems.
It costs alot of money to make sure that the company complies with all of theses and until a the time a company sees they can profit they are not going to spend the time and money to sell in theses countries.
Until then ship the product to somone you know in the US and then have them ship it to you. That way the person shipping to you has to deal with customs and all that mess.
No barriers (Score:3, Interesting)
Of course, that doesn't directly help you in Hungary, but anyway...
Showtime and other media channels... (Score:4, Interesting)
The stupidity of companies doesnt even phase me anymore...
Re:"Can't be bothered..." (Score:5, Interesting)
The are 60 million people in the UK. That's an awful lot of homes. If you're sending packages from the suburbs of London to the suburbs of Glasgow at a minimum it will go from local post-office, to local sorting office, to regional sorting office, to airport, to plane, from plane, to airport, to regional sorting office, to recipient, say. That's many places where it could go missing. The major distance (London to Glasgow) isn't an issue here. That could be 400 miles, it could be 4000 miles.
There is an issue with the reliability of the packages arm of the post office, Parcel Farce. They aren't very good. But the private carriers are generally fine. I can have a friend from Arizona send me a harddrive and it turn up on my door step two days later.
But as others say in the end it's down to the effort the suppliers want to make. You could either use a better carrier, insure against potential fraud (Western Europe is not the third world and our crime is no worse than the US and in some areas a lot better), carry out better checks. Add a premium to the sales price to cover these.
We're a big market. Scandinavia, Ireland, the UK, France, Germany, Spain and Italy is a hell of a lot of population (between 400 million and 0.5 billion people). It must be worth their while to sell to us. If they don't we'll look elsewhere.
Re:"Can't be bothered..." (Score:2, Interesting)
This Dell site says this "Please call a Dell Local Distributor to order" on each model AFAICT. Have a look [dell.com] yourself.
That doesn't help much since he said we wanted to order on the WWW.
Re:Shipping and taxes. (Score:3, Interesting)
A nightmare for all involved, no less. Even ordering from the US into Canada is a nightmare. For example: I wanted to order a copy of Fallout 1/2 (in one package) for ten bucks online. Tack on another $7 for shipping to Canada, that's $17 USD, and I figure, that's about what I'd pay in Canada anyway. So I place the order. Four days later, I get an email telling me they're going to ship it to me via UPS international shipping. This is a problem for two reasons:
First of all, brokerage. On a $10 USD purchase, UPS wanted to charge me, on top of the $7 I was going to pay anyway, another $35 USD. Thirty-five dollars for 'brokerage', even though the only thing I'd have to pay would have been 14% sales tax at the border, which I could have paid no problem. But no, they had to charge me $35 to 'broker' my ten dollar purchase.
Secondly, UPS disclaims all liability when shipping internationally. This means that if they lose my package, too bad. If they smash it with a hammer, too bad. If it arrives in the form of silvery dust in a ziploc bag, well, too bad.
There was a story on slashdot (too lazy to search for it, but someone probably remembers it) about someone who shipped a few thousand dollars worth of mac and PC equipment from Ontario to California. It arrived largely in pieces, with damage to cases, lost cables, boxes smashed open along the sides with holes that things fell out through, etc. It was the worst damage I'd seen done to a computer that wasn't intentional or fire damage, and UPS's attitude was basically 'Yeah, that's too bad, isn't it?'
Unfortunately, UPS seems to be the courier of choice because FedEx is so expensive, and people in the US don't seem to realize what a colossally bad idea it is to ship internationally with UPS, because they can't destroy stuff sent domestically. As a result, if you want something ordered from a US website (with notable exceptions like Crucial), you either get it via UPS (but not intact) or you get it sent USPS, which most people won't even do.
Long story short: chances are, you don't WANT to order from the US. Not even if you're in Canada. ESPECIALLY not if you're overseas. If you need to, then get ahold of a friend in the US, get it shipped to them, then get it sent FedEx deferred by a week or two to save some coin. Otherwise, you're screwed.
--Dan
Re:"Can't be bothered..." (Score:2, Interesting)
I live on an island in the Caribbean Sea and therefor do a lot of on-line ordering.
Take ThinkGeek [thinkgeek.com] for instance: With a lot of their merchandise you see something like: "Sorry. We cannot ship this item outside the USA."
That's why I use a forwarder in Miami: Thinkgeek is happy to receive my payment & send the stuff to the forwarder--but they do not want to send it directly to me. now, why is that?
Fraud -- possible solutions (Score:2, Interesting)
Re:"Can't be bothered..." (Score:4, Interesting)
Re:The reason is (Score:5, Interesting)
Euro VAT a problem too (Score:2, Interesting)
A matter of size (Score:3, Interesting)
Sure, it's a matter of size and being worth their while. America has a 280 million potential customers and a $10 trillion economy and a single, well established (fairly) predictable legal system. Singapore by contrast has 4 million potential customers and a $106 million dollar economy. Setting up the infrastructure to sell to that market (translation, understanding & adapting to local laws, etc. etc.) is difficult & expensive the market is so small it may not even end up being profitable, why bother when there are so many more people in America (or perhaps Europe, or the larger "anglosphere" countries) that have yet to buy your product. Even Austrailia where there is no language barrier and the legal system is essentially the same (also based on English common law with presumption of innocence, jury trials etc.) but still has only 19 million customers and a $528 billion dollar economy is not necessarily going to be worth bothering with if you're a small or medium-sized American business. Still most large American (and very many small) companies DO sell to all or most of the countries you mention - they just don't sell to them from their American web sites.
Re:"Can't be bothered..." (Score:5, Interesting)
These companies don't only frown on grey market imports, they do everything in their power to stop them. Particularly bad are car manufaturers (ridiculous price differences for the same thing even inside Europe, very restrictive sales practices to "authorised dealers" etc) and clothing/shoes people (I seem to remember Reebok stopping supermarkets in Germany from re-importing from China, as it would "dilute their brand" or something).
Anyway, the big companies want globalisation, have factories where the work is cheapest etc. Lawmakers should make sure that individuals have the same capabilities, and for instance make things like "region encoding" illegal.
Ponxx
Then, There's Customs People Who Want a PayOff (Score:3, Interesting)
Re:The reason is (Score:4, Interesting)
What I do is if the order is from outside the U.S. *OR* from inside the U.S. but uses a free-email account as a contact, or there is any question about the validity of the order, an email is sent to the customer asking them to fax a copy of the image of both sides of their credit card along with their signature and a note of the amount to charge. If it is charged back that gives me some documentation to dispute the chargeback with Visa/MC.
Of course, American Express is an entirely different set of nonsense. If you do more than 50% of your business on the Internet AMEX puts you on a "Full Recourse" plan which basically means any chargeback against you CANNOT be disputed, even if you have the above documentation. It's basically a cop-out on the part of AMEX in its duty to do a good-faith investigation into a chargeback. Basically, if the customer disputes the charge you're screwed. For that reason, our company will not accept AMEX orders over $50--which kind of defeats the purpose of accepting American Express. But I happily tell my customers to just use Visa or Mastercard instead. Seems AMEX is shooting itself in the foot.
Re:Get someone in the states to ship it (Score:3, Interesting)
And perhaps, instead of dealing with the vendor he might try dealing with a store. Byte Shop of Britain or some such. Perhaps that Scots outfit McIntosh Computers.
International orders are a huge pain (Score:2, Interesting)
And, boy, is it a pain. First, UPS and FedEx, while nice, charge an arm and a leg to ship internationally. The one pound rate for UPS is about 5-20 times more expensive than the post office depending on the location. Customers won't pay for the expensive shipping.
Second, when the customer chooses the cheap shipping, you can't track it. The US Postal Service tosses your box into the void, and who knows where it goes from there.
Third, after the post office loses your package, the credit card company comes back after you saying that the item wasn't received. Charge back time. That's a $25 charge plus you lose the money for the sale.
And, if it does go through, there's the paperwork. I need to fill out a form in triplicate for packages over 5 lbs. The US Postal Service doesn't have software that does this automatically, of course. By hand, every time.
Oy.
Freight Forwarders are the enemy (Score:2, Interesting)
Not just in Hungary (Score:3, Interesting)
Fine, but I live in Canada. None of these apply. Our credit cards have very similar fraud rates, and there are no extra fees for merchants charging a Canadian card. Heck, I can even get a US Dollar card drawn from Citibank if ya like.
Even those merchants who don't flatly refuse to sell to me make it prohibitively expensive by making their lowest tier international service "DHL 1-hour delivery - $529.99." Thanks guys, but you can just throw that in a box and send it parcel post. I'll pay the duty when the mail carrier comes to my house. I've had this argument with ThinkGeek a few times, and they cannot even comprehend the basic concept of mailing something to a non-US address.
For me, at least, this is maddeningly frustrating. It should be entirely transparent to the merchant to send stuff to me in Canada. The credit card gets charged in USD, and it bills me with the current rate. Merchants don't need to fill out any forms; Canada Post (or UPS, or FedEx) does that for me when I get the package. Same as above with duty and taxes.
Considering that this process is transparent to the merchant, those who say "Only ship to USA" or those who only offer expensive shipping to Canada are making a very clear statement about their priorities. I don't know what that statement is, considering that I'm trying very hard to give them my money, but there's a statement in there for sure.
It all has to do with credit cards. (Score:4, Interesting)
Unfortunately, that means you're hosed.
BTW, it's not the web sites that are your problem, it's the banks that issue the credit cards. They are increasingly willing to refuse transactions on the slightest hint of anything suspicious, using arcane and complicated rules. The merchants can't even find out why a particular transaction was refused, but they don't want to tell that to you, so you get whatever reasonable sounding excuse they can think of.
Re:The reason is (Score:3, Interesting)
I've never had to deal with an ID-theft or fraud (knocks on wood). My GF has, and it was absolute hell. She now gets a phone contact any time her credit gets run, on the assumption it's a fraud. From my point of view, preventing this makes going to a little extra bit of trouble, finding alternate vendors, whatever, very much worth the small amount of extra time. Just my $0.02