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Restrictive Sales Practices on the Web?

Ed Almos asks: "I don't know about other Slashdot readers, who happen to live outside the US, but I'm in Hungary, and am finding it more and more difficult to purchase goods and services over the web. The sites are there, the money is in my account, but the sites won't sell me anything! Can someone come up with a logical reason for these policies? Last time I checked I was using the WORLD Wide Web, and there seems little point wasting bandwidth to post your website to the world when only those living in the USA can buy and/or use the product. Then again, is this yet another example of the Internet and the rest of the world becoming more and more centered on the continental USA? The final irony? I'm originally from Maine. These folk won't even sell to one of their own!"

"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."

9 of 736 comments (clear)

  1. Restrictive Sales Practices on Web - So true !! by $exyNerdie · · Score: 5, Informative


    So true !!

    But wait, I can't buy Yopy 3700 Linux PDA in US.
    (The Yopy 3700 is developed in South Korea and is currently available in France, Austria and the UK for a MSRP of $499 US.)

  2. Here's some reasons by flowerp · · Score: 5, Informative

    Credit card clearinghouses charge more money to US companies for clearing international credit card transactions. Hence a lot of US retailers do not accept foreign credit cards for online orders.

    Fraud is more likely to occur on international shipments where the receiver is harder to track down.

    Foreign people's credit information/scores are not easily available to US companies (this applies to financing options).

    Music businesses may not yet have acquired the rights to distribute the music outside of the US. Local monopolies hamper global distribution.

    There are issues with international shipping and customs. Customs may confiscate or return shipments. Export restrictions may prevent exporting certain technologies and goods. ...extend this list at will...

    --
    --- Eat my sig.
  3. Chargebacks by mikeophile · · Score: 5, Informative

    The chargeback levels from some countries are enormous. When a country accounts for only 2% of your business but makes up 20% of your chargeback, it doesn't take a business genius to decide that country's purchases aren't worth it.

  4. Perhaps you should go to localized sites by Heartz · · Score: 5, Informative
    Dell does ship to Hungary. Just visit their local Hungarian site.

    Your best bet is to look for a localized site so that it's not only easier for you to return the product but also save on postage.

  5. Since Hungary is more in the European region by admbws · · Score: 5, Informative

    It would probably be better to buy things from either European or Hungarian resellers. Instead of Amazon.com, use Amazon.co.uk. Instead of Dell.com, use Dell.hu IBM, again, use IBM.hu instead of IBM.com. Simple really.

  6. Fraud & Chargebacks Kill by esconsult1 · · Score: 5, Informative
    As a merchant, i've stopped selling my software product to certain Eastern European countries because of the fraud problem.

    At one point the level of chargebacks almost drove me out of business. Imaging you selling so many copies and then a month or so later almost all of them get charged back!!

    It leaves a pretty bad taste in the mouth.

    Now, my friends and family in Jamaica will ask me to purchase stuff for them and ship it. I am glad to do it. The submitter better find some friends here that can do it for her/him.

    Until the day comes around when the laws and financial instutions play catch up in those countries, we will always be reluctant to do business overseas.

  7. Re:Sounds like a market opportunity to me by follower-fillet · · Score: 5, Informative

    Someone's already doing it:

    http://www.myus.com/

    (I have not used them, just remembered seeing a company that does it, and a Google search revealed this one.)

  8. Re:The reason is by Not+The+Real+Me · · Score: 5, Informative

    Fraud is the answer. Since the source to compute the checksums for credit card numbers of openly available, script kiddies in foreign countries run their little scripts in an attempt to get free services or products from vendors.

    This is why various merchant banks now require those of us accepting credit cards to either take the 3 digit cvs number, a zip code or city name as part of the merchant verification process. Therefore, it's up to the merchant to decide whether to accept credit cards from outside of the U.S. Many online merchants will simply pass on non-U.S. cards because getting too many chargebacks can get your merchant fees to skyrocket or get your merchant account cancelled altogether.

  9. Re:The reason is by LordKane · · Score: 5, Informative
    All to true. I work for an online software company, and our biggest issue is chargebacks. We have EULA's, we have phone verification on ALL orders, but the only thing we don't have is a signature as we found most people will go elsewhere to avoid the hassle of faxing in a signed order if they can do it all online at another website. We also find this is not exactly effective either, which I will explain later.

    This results in some amount of trouble. If the person simply feels like it, they can deny the charge. If they decide tech support did not kiss their @$$ enough, they can chargeback. If they don't want to pay for it but want to keep the software, they can deny the charge. There is no real penalty for perjury on a chargeback form because in most cases it's a matter of "he said, she said". Proof is nearly impossible in cases where the person is complaining about the quality of service. It's software. People devise bugs out of their own ignorance, and never have a clue as to what they are buying. The merchant bank is just as dumb too, and will believe almost anything the customer says because it pertains to that nebulous field of "compu-tators." Hyuk.

    While in some cases they may not be able to say "It wasn't me", which is the most common by the way, they can simply say "The merchant did not deliver as promised." No matter what EULA or signature we provide in response to the merchant bank, they have told us they will always side with the consumer in these cases. Unless your a very large company who has already worked out an airtight agreement with the bank, your screwed. We have been told this 3 times when asked why we do not respond to most chargebacks. Our response is usually "We were told it does not matter because you always side with the customer. Besides, you make money off chargebacks, so you don't care who the money goes to. Should we really bother?" They say "Well, your right. Ok, nevermind." *click* That last item is a quote from the last time we were contacted. If it's near impossible to handle chargebacks in this country, why accept purchases from even higher risk locations? Going after someone in this country (US) for payment would cost more than the software in legal fees. If it's even possible in the target country, you can triple the legal costs.

    In my business, we wouldn't accept a purchase from the original poster. We will sell to some other countries, but not many. Netherlands, UK, Spain, Russia, Croatia, Georgia, NIGERIA, most of Europe, Africa, and Asia, actually, are all places where we simply delete the purchase. In our 7 years of business, not 1 single good purchase has resulted from those countries. Not one. All have charged back as being fake.

    Until merchants can be better secured against fraud and weak chargeback claims from @$$hole customers, then I doubt you will be seeing US companies offering much international service. I know it's a two edges sword, as I have seen it needed to chargeback myself a few times when companies screwed me. As much as I would hate to see my power to do so diminished, I do realize that many small merchants are getting porked by the current setup. So, the system can be left as is for now, but definitely do not expect service from the US as long as it does.

    --
    "Victims, aren't we all?"