Shopaholics dream: the soaring Aussie dollar
With the Australian dollar now buying around 87 cents in the U.S., many holiday goers are snapping up bargains whilst on their travels overseas. But back home, web-savvy shoppers across Australia are finding that they can now make considerable savings from the comfort of their home, by buying from large online retailers based overseas.
Why is it then, that we often pay a premium in Australia for exactly the same product? One of the reasons is our population. When it comes to certain types of product, Aussies simply do not purchase enough to give our importers the buying power of the big boys across the pond. Since the U.S. imports goods in much higher quantities than Australia, it makes sense that they are able to obtain and sell goods at lower prices than our local counterparts. The lower minimum wages in the U.S. may also play a part in reducing the bottom line cost charged to consumers.
Research shows that online shoppers can, in certain circumstances, save as much as 30 - 50% on an item, simply by purchasing online from a U.S. retailer - and that is taking into account the cost of shipping the item to Australia.
Take entertainment products, for example. The latest video game could cost around AU$109.95 if bought from a local retail store. Purchasing the same product from an online U.S. retailer such as TronixWeb.com would set you back just AU$83.37, and that includes express 3-day shipping via a FedEx courier, with online tracking of your shipment. Buy two or more items, and the proportional cost of shipping diminishes, resulting in further savings.
Camera gear is another great example of a type of product which can be much cheaper to ship from overseas than it is to buy locally. BHPhoto.com is the online store front for one of the largest U.S. camera retailers. Here, a camera flash unit such as the SB600 for a Nikon digital camera can be purchased, and shipped to your home or office for AU$251.75. The cost to purchase from a local camera store would be around AU$549.95 - a whopping 54.22% difference.
But it's not just technology products where Australians tend to pay a premium over other countries. Savings can be made in clothing purchases too - particularly shoes, watches and other low-volume sales items.
A word of warning though, before you jump into online shopping. As with anything, you need to be aware of the technicalities of the item you are looking to purchase. Certain video games will not work on locally-purchased systems. DVDs often have region-encoding which can prevent playback of certain discs unless you have a region-free DVD player. Clothing sizes may vary dramatically in overseas markets, and you should always be wary of purchasing from online stores which aren't well known.
In addition, certain brands of product may only offer a warranty in the region of sale, leaving you in the lurch if the item breaks. Fortunately, local warranties are relatively inexpensive to purchase.
Online shoppers should also be aware that credit card companies will charge a small fee for purchases made in a foreign currency. The foreign currency processing fee varies, but is usually around 2% of the cost of purchase. Still, if you're saving 50% or more on the latest camera, DVD or wrist watch, such costs are easily absorbed.
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