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The age of overseas bargains is over

Getty

Getty

The days of sidestepping local retailers in favour of far cheaper foreign websites may have ended.

A weakening dollar, fading novelty and local competition have eroded the online bargains available overseas, a consumer expert has claimed.

“The Aladdin’s Cave that was online shopping a year or two ago is not the same,” said independent consumer advocate Christopher Zinn.

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Last week, Treasurer Joe Hockey and his state counterparts agreed to a new online shopping tax, even as the Aussie dollar fell again on Monday to US$0.76, well below the highs of more than a full US dollar back in 2011 and 90 cents last year.

Consumers who want to snap up cheap e-books, movies and music will be forced to pay an extra 10 per cent on these ‘intangible services’ sold to Australia under proposed changes to the goods and services tax (GST).

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More of the packages we buy may be posted locally, not from overseas. Photo: Getty

This may foreshadow a lowering of the GST threshold from the ‘exceedingly generous’ current limit of $1000, some commentators have predicted. A similar campaign has already begun in New Zealand, where retailers want the Kiwi threshold to drop to about AUD$25.

As production costs rise in China, local businesses – both physical and online – have finally “pulled up their socks big time”, Mr Zinn said.

“Retailers here have come up with much better offerings to challenge the overseas ones.

“Competition has really delivered for consumers in this area.”

Last year, online spending continued to rise in popularity but at a slower rate, the National Australia Bank (NAB) reported in its annual online retail sales index report.

Online spending increased 12 per cent, below the two-year average of 17 per cent and far lower than the 30 per cent growth seen back in 2010, the report found.

Once postage is factored in, the window of opportunity for overseas bargains may be slowly closing, but more discounts may be found closer to home.

Australian Retail Association executive director Russell Zimmerman agreed that local retailers are becoming more competitive – to the benefit of consumers.

“We’ve lagged well behind in the online space, but currently we are seeing retailers giving an offering that is equal to or better than [overseas], both price-wise and in their actual websites,” Mr Zimmerman said.

Overseas bargains not dead yet

But a spokesman for consumer group CHOICE said there are still overseas bargains to be found.

“We know the ‘Australia Tax’ is alive and well Down Under, particularly with digital games,” CHOICE spokesman Tom Godfrey said.

“Even with the GST factored in, consumers can still make savings by shopping around international online stores.”

While the weak currency rate is persuasive, the appeal of foreign websites may be more than just price.

Consumers also value product range and convenience, IBIS World senior researcher Lauren Magner previously told The New Daily.

“The main reason Australian retailers will take back market share from international retailers is because they’re migrating online and offering more products and becoming more competitive in their pricing,” Ms Magner said.

For now, there is no concrete plan to drop the GST threshold, but any change could hasten the demise of the overseas deal.

National Online Retailers Association executive chairman Paul Greenberg previously described the current $1000 threshold to The New Daily as “exceedingly generous”.

How to still find online bargains

• Consolidate your purchases to save on freight and unlock discounts on bulk orders;
• Never shop without discount coupons and promotional codes. Check for these vouchers at sites like finder.com.au and ozdiscount.com;
• Use price comparison sites shopbot.com.au and getprice.com.au to ensure you’re shopping at the cheapest dealer;

• Once you’ve found something you like, search it on multiple websites, not just one;
• Like your brands on social media – you’ll be the first to know about sales and special offers;
• Carefully check the website’s refunds, returns, privacy, delivery and guarantee policies to save you time and money later on;
• Get the newsletter – let your favourite brands contact you when they have a deal to offer;
• Use a private window in your internet browser, just in case the shopping website is varying its prices depending on your internet history.

– with AAP

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