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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."

23 of 736 comments (clear)

  1. "Can't be bothered..." by Speare · · Score: 4, Insightful

    It costs money and time and expertise to establish a world-wide shipping channel. You have to know a lot more about international trade law, and liabilities in cases of returns/exchanges/credits are much more complex.

    Most small companies can't be bothered to grow that kind of capability, as the short-sighted shareholders (public or private) won't accept the large up-front cost in that kind of expansion.

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    [ .sig file not found ]
    1. Re:"Can't be bothered..." by RALE007 · · Score: 5, Insightful
      The original article cites:

      ...IBM, Apple and Dell operate web stores that sell almost their entire range of kit, they only ship to the USA....

      IBM, Apple, and Dell are hardly small businesses, and I think the original question of "why don't they ship international?" is still valid. I also do not buy "(small) companies can't be bothered to grow that kind of capability..."

      What capabilities are necessary to grow? Purchaser still pays shipping, and you create seperate national and international warranty/exchange programs. The national program is the standard warranty, international terms can be whatever you deem, eg:

      "Warranty only good in the US."

      "International purchasers are liable to shipping costs for returned/exchanged items..."

      et cetera. It doesn't seem like much capability growth to me. Perhaps I'm missing something.

      To answer the original question of "why won't they ship international" has more of a simple direct response. The poster of the original article was looking at the wrong places to buy. As stated in his original post, companies usually have a local (national, within the US) website, and an international one. If you ask the American division of Dell to sell you a computer, they will not (and should refer you to the correct division of the company that handles purchases for the location of the purchaser). Sadly many of those within a national division are unaware of their own corporations international offices.

      For example, IBM (International Business Machines) allows you to select the country of your location on their webpage. To solve the authors ordering difficulties, he should visit IBM's Hungarian Website.

      If he wishes to buy direct from Dell, he should see Dell's Hungarian Website.

      Lastly, he said he couldn't buy Apple. I am not finding an Apple Hungarian website, but from Apple's main page I see they do have a european website, and also a site for neighboring Austria. I think if he inquired with Apple's european offices, as oppossed to inquiring the American, he could find how to have products shipped to him in Hungary.

      This is not a troll, but I don't think the author of the original article has much merit to claim he cannot buy products internationally. I think he's a guy originally from Maine who doesn't speak Hungarian so he can't order of off the Hungarian website.

      I think the companies listed in his example have uninformed or undertrained representatives who do not even know to refer a customer such as the original author to the Hungarian/European offices instead of simply telling him "we don't sell to anyone who isn't in the United States".

      So, in closing, it's easy for companies to operate internationally, there isn't much of a "process growth" involved. Our original article poster doesn't really have a problem, he just doesn't know where to go to order his equipment. When he inquired at the wrong place to see if he could purchase, whomever he communicated with was unaware of where to direct an international customer and misinformed him that international customers are not desired.

      --
      Beware blue cats moving at .99c
    2. Re:"Can't be bothered..." by dbrutus · · Score: 4, Insightful

      What he can't get is goods that have not been released for the respective country. For instance, Apple puts out a new version of their OS but they haven't got around to updating the Magyar language strings. Well, should they delay release? No, they just don't release the product to Hungary and release it later when they've finished localizing it. Buying goods in other markets and then importing it is called grey market purchasing and is perfectly legal, if frowned upon by the manufacturer. That's what this fellow wants to do. he doesn't want to wait for the new Hungarian language instructions on the new iPod to be ready, he wants his iPod now and screw the fact he'll have to read the directions in English.

      There's a real need for an expat friendly cross shipping service that will allow you to have a virtual US presence, e-mail you your postal mail, and ship your stuff further on, once it has arrived at your US address. If you can have a credit card issued to you with a US billing address nobody gives a damn that the check is drawn on a Hungarian bank when you pay your bills.

      I've informally done this kind of work for a Romanian firm who needed to buy a copy of some specific variant of Fortran but couldn't get anybody to take their money. No, you can't patent it as I claim prior art but feel free to open a formal business on this plan.

    3. Re:"Can't be bothered..." by anonymous+loser · · Score: 5, Insightful
      I also do not buy "(small) companies can't be bothered to grow that kind of capability..."

      What capabilities are necessary to grow? Purchaser still pays shipping, and you create seperate national and international warranty/exchange programs. The national program is the standard warranty, international terms can be whatever you deem, eg:

      "Warranty only good in the US."

      "International purchasers are liable to shipping costs for returned/exchanged items..."

      et cetera. It doesn't seem like much capability growth to me. Perhaps I'm missing something.

      Speaking as the manager of an international sales channel, I can hopefully fill you in on the big picture.

      • Here's a few items off the top of my head:
      • Infrastructure. There's a lot of little things that you have to do to enable international sales. You need targeted sales and marketing materials. You have to know how much it costs to ship stuff to that country. You need access to people who speak the native language that can help you out with all the business and legal issues that crop up, etc.
      • Payment. Suppose you ship off an order of widgets to another country, and the credit card turns out to be stolen, or the Purchase Order is reneged, or a myriad of other things that could go wrong with payment happens. You've basically just lost that money, with very little way to recover it. Thanks to the fact that it is an international payment, it might very well cost you much more to attempt to recover the money than the value of the sale. Of course there are steps you can take to mitigate this problem. I had an associate tell me that if I ever sell something to country XYZ, be sure that I have all the money in my bank and accounted for before I even ship anything. This works, but it's a bad solution for other reasons. As the RIAA has shown, there's nothing like treating your customers like criminals to win their loyalty.
      • Warranties are not necessarily whatever you put on the box. There are laws that state minimum warranties for products, and those laws vary country-to-country and sometimes state-to-state.
      • Like warranty claims, liability can be a big issue. If the product breaks and causes financial or other damages, the laws of that country take over and determine the liability of the seller. It is very difficult and expensive to sort out these legal issues and establish policies for every country in the world. If you think lawyers are already expensive, you should try hiring a specialist like those that handle international contract law. It is a major bank-buster just to do the proper groundwork and establish a beachhead in a new country.
      • Customer support is a big issue. It is expensive and difficult to provide adequate customer support to the international community, especially when there are language issues involved. In this particular case the guy happens to be a native English speaker, but I can certainly see why a company would establish a general policy of not selling to some countries. Generally speaking, it's a major pain in the ass. I dunno about Dell, IBM, etc. but I want my company to provide the best customer support possible, and just the language barrier by itself is a detriment to providing a level of support I am comfortable with. Add to that issues with time zones covering reasonable business hours in the country you're selling to, shipping expenses for returns, etc. and customer support can quickly get out of control.
    4. Re:"Can't be bothered..." by Zardoz44 · · Score: 3, Insightful
      May be because capitalist society is inherently ineffective in taking care of the customers?

      Capitalist society is driven by customers. However, in this case, capitalism is restricted by international trade laws which make selling goods and services overseas difficult and often unprofitable. Consider this document:

      The 25 percent truck tariff evolved out of an agricultural dispute with West Germany. To retaliate against unfair treatment of U.S. frozen chicken exports to West Germany, President Lyndon Johnson imposed a 25 percent tariff on imported trucks valued more than $1,000 by Presidential Proclamation 3564 in 1963. Prior to this proclamation, imported trucks were subject to a tariff rate of 8.5 percent.

      You mess with my frozen chickens and I'll drop a tariff on your light trucks. Crap like this is what makes it difficult to sell/buy overseas products.

    5. Re:"Can't be bothered..." by John+Hasler · · Score: 3, Insightful

      > We're a big market.

      No you aren't. You are a bunch of small and medium sizied markets, each with its own set of customs, tax, legal, shipping, and fraud headaches.

      > It must be worth their while to sell to us.

      It would be if your market was truly unified.

      > If they don't we'll look elsewhere.

      Of course you will. So what?

      --
      Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
  2. Sounds like a market opportunity to me by El · · Score: 4, Insightful

    If US companies are too silly to ship to your country, why not start your own e-commerce site? Lease a warehouse in the US, have them ship to that, and then fly it over daily and fulfill your own orders...

    --

    "Freedom means freedom for everybody" -- Dick Cheney

  3. tarrifs, trade restrictions, VAT, etc by Vellmont · · Score: 4, Insightful

    I'd imagine that a lot of small companies don't want to deal with this sort of thing. Why a larger company wouldn't, I don't know.

    --
    AccountKiller
  4. BECOMING more US Centric? by Gojira+Shipi-Taro · · Score: 5, Insightful

    You do know that the US is where DARPAnet began, right? that little network that was the precursor of the internet?

    Do you propose that companies that aren't prepared to undertake the expense and risk involved in doing business with every last country on the planet not be able to do business on the web?

    I'm sorry but I don't see the basis for complaint in the original poster's musings. It costs MONEY to, for instance do business in Hungary, handle transactions and currancy conversions, and deal with fraud. If a particular market doesn't offer enough profit to justify the expense, that market simply isn't worth doing business with.

    I'm a little suprised that Hungary is on the list of "not worth it", but perhaps that's not universal.

    The web is planet wide. Not every company on the planet is obligated to do planet wide business to participate.

    --
    "Oh my God. This is terrible. This is the end of my Presidency. I'm fucked."; ~ Donald J. Trump
    1. Re:BECOMING more US Centric? by ahfoo · · Score: 3, Insightful

      This is all quite off base.
      The guy was wrong from the beginning. It's not becoming more US centric. It's quite the opposite.
      I say that as an American that has lived overseas for fifteen years. The world was infinitely more US centric to me back in the eighties. In order to understand this you need to realize that the definition of being from any particular place has broken down enormously in the last few decades.
      It's like saying that Japanese automakers are edging out detroit. Well, that's a bit ridiculous since many Japanese automakers are largely owned by both European and American interests and vice versa. To speak of anything being centered on any one physical region is a rapidly deteriorating notion that was far more defensible in previous decades.

  5. Can you say.... by djupedal · · Score: 3, Insightful

    EU taxes?

    Hightened security on shipping?

    Cost to verify overseas c'cards?

    Cost of refused delivery?

    Cost of RMAs?

    Import duties?

    English only packaging?

    ...need more, let me know. I've been around this tree over and over, for years now.

  6. Word Wide Web != Word Wide Shopping by mjhans · · Score: 4, Insightful

    Why does it mean that just because a site is on the web it must provide all its services to the entire world? The web is worldwide, not the services of each specific site.

    That's like complaining that the front page of the New York Times on the web isn't world-centric (hint: it's not even US-centric, it focuses on New York)

  7. Personal insight... by silverhalide · · Score: 4, Insightful

    Having been in a small mail order business for quite a while, I can tell you why US companies hate shipping internationally:

    It's a pain in the ass.

    An international package takes at least 3 times the paperwork to fulfill. There's a 4-part customs form, customs declarations, and not to mention ungodly postage. It also screws up shipping calculations. In the US, you can safely charge a flat rate fee for shipping and that's that. You can even run actual shipping rates through the current USPS And FedEx rate tables. Now, bump it up to international shipping. You HAVE To insure everything that goes international, since the package is handed off between organizations many times if you use the US Post Office. UPS and FedEx are ungodly expensive internationally and hardly pay to use. Not to mention that many international customers don't have English as their first language making correspondance that much more difficult.

    Now what about your return policy? I sure as hell don't want to be sending a call tag for $100 to get a computer shipped back to me because they didn't like it and it's broken. It's just impossible to provide the same level of customer service to someone not in the same country as you.

    So if you were wondering, that's why US Companies hate shipping abroad. Canada and Mexico are a little easier since they have more relaxed borders, but still a pain in the butt.

  8. Re:The real reason by dJCL · · Score: 5, Insightful
    The parent is modded funny, and the best part is that the comment could be true. How many out there can find Hungary on a map? Do you have much of an idea of where it is? I've gotten the impression in the past that many in the US do not have an impression of the rest of the world(Just watch "Talking to Americans" on CBC some time, if you get the jokes )

    So... Do you know where Hungary is? Can you find it on a map? Without Google?

    I had a general idea when I started reading the story, and when I thought of this comment I was able to place it exactly in my head, and could even tell you nearby countries...(no hints for you!)


    Enjoy!

    --
    On Arrakis: early worm gets the bird. Magister mundi sum!
  9. Re:Can't buy G4 and G5 based Macs.... by Baumi · · Score: 4, Insightful

    It used to be like that when the G4 came out, but the policy has long since been revised.

    To get this back on topic: AFAIK, all of Apple's online stores (it has them for various countries) only sell to people living in the respective countries, and I'm afraid the feeling in Cupertino is that the Mac market share in Hungary is too small to warrant a localized online store with all the additional costs. (Call center, etc.)
    And the ITMS is, as you probably know, all tangled up in complicated European licensing issues - there's no European equivalent for the RIAA and even within single countries, the labels can't seem to agree on a common policy.

    Will Amazon.com sell you DVDs? They should - there isn't that much of a warranty issue with them and I can get them overe here in Germany without any problem.

    (BTW, if you're in the market for US-DVDs and Amazon won't sell them to you, try play.com or dvdboxoffice.com )

    As for the earlier post that mentioned Hungary's countryside: I sure hope it's beautiful; I'll be visting Budapest a month from now. :-)

  10. Welcome to the real world by Anonymous Coward · · Score: 4, Insightful

    Believe it or not there actually are differences between the differnt countries in the world. Companies that don't sell to a foreign market usually do so because they have either found it to be more costly than profitable or they haven't found a reason to expand into that market. Comapnies are usually trying to make money and if it costs more to setup your company to do business in some foreign company then more than likely you aren't going to. Its not as simple as just telling UPS to ship to some country. There are lots of hurdles to doing business in a foreign country. Logistically, financially, and legally. And if anything the amount of small business transactions has improved tremendously. 10 years ago the average consumer wouldn't have bought a damn thing from some other country, even with mail order. The fact that we dont have universal commerce between all countries shouldn't surprise anyone.

  11. I can find it by lpret · · Score: 5, Insightful

    But I think you've hit on something that is much deeper. Many times Americans will say "So what? Who cares about country X?" (See reply at same level) but as an American who has lived overseas most of my life, I have to say that it has helped a lot. It helps you understand where everyone else is coming from, especially in regards to their view of the US. It's similar to finding out who your neighbours are down the street. It may seem trivial, but it will help you understand your neighbourhood better and also understand what they think of you (and if you're a different race, what they think in general). Knowledge is always a good thing, and once we start to understand where people are coming from, we are better equipped to communicate and create solutions instead of blunders.
    /soapbox

    --
    This is my digital signature. 10011011001
  12. Re:your point? by MillionthMonkey · · Score: 4, Insightful

    Yeah but that isn't relevant. His point went straight over your head.

    Just because I am visible to you over a network doesn't mean I am obligated to do business with you. The nationality independence of the web means Turkish people can buy things off Turkish sites, Japanese people can do business on Japanese sites, etc. and it works well for everybody. It doesn't imply that everyone doing business on the Internet is responsible for servicing customers from anywhere in the rest of the world.

    People might have a whole bunch of reasons for limiting service to locations closer to themselves. There could be all sorts of paperwork and infrastructure that might not be properly set up to handle the transaction, or the associated overhead may overwhelm the profits from an extended market.

    I don't understand where people come up with some of these strange beliefs about the Internet that they seem to have. How is it in principle any different from the global telephone network? For some reason, nobody has any common sense regarding the web, but phones don't seem to confuse people.

    If I have a pizzeria in New York City and I install a phone, and you call me from Los Angeles trying to order a pepperoni pizza, I'm going to hang up on you. Having a phone number that is accessible to you doesn't mean I owe you my business. Even though you can dial my number and easily get in touch with me, there might be other problems, like the difficulty in getting a physical object like a pizza to you. The ease of the phone call hardly enters into it. "Why aren't you calling pizzerias in Los Angeles?" I'd ask, before hanging up. And that would be a reasonable response. How is having a web site any different? It isn't.

  13. insurance by smoking2000 · · Score: 3, Insightful

    I visited Hungary just a few weeks ago, we wanted to rent a car to get there, but they wouldn't rent it to us because they cannot get the insurance for the car in Eastern European countries.

    So we bought a car, the travel insurance to Hungarije was 15% or so higher then if we would have gone to Spain or some other western european country.

    The economy is low so companies do everything to save money/not pay money. Terrorism is the mainstream accepted excuse. And since Hungary was under Socialist/Communist (which one was it agian?) reign till 1991 or so, places countries as such in the High Risk Countries category.

    I hope things like these will resolve when Hungary joins the European Union. Not that I really want that, cause wealthy west-europeans will move to Hungary and destroy the beautifull countryside to build office buildings and such, and Hungarians will probably move to the west so you culture will be lost aswell... But thats a different discussion..

  14. Re:The reason is by Junior+J.+Junior+III · · Score: 4, Insightful
    Those other guys who ship straight from the U.S to the U.K must be getting suckered all the time! Oh wait, CC fraud is about the same in the U.K as it is in the U.S.

    The rate of fraud might be about the same, but have you tried looking at the legal burden of arresting someone overseas in a foreign sovereign nation vs. arresting someone a few states away? We might have extradition treaties with the UK, but to invoke it for a few hundred or even a few thousand dollars worth of fraud, every time such a crime is committed, would completely overrun law enforcement offices, making it impossible for them to deal with more serious matters.

    --
    You see? You see? Your stupid minds! Stupid! Stupid!
  15. Experience from a Mom & Pop Dotcom by unfortunateson · · Score: 3, Insightful

    My wife runs an internet children's book shop (I won't plug it here), and while there are no countries we have 'banned' there are several areas we flag as high risk: Eastern Europe, especially Rumania, and Southeast Asia, especially Singapore and Indonesia.

    An order from there, especially multiple copies of items, books oriented toward teens such as comic book collections, etc., will raise a red flag, especially if a US credit card is used.

    There's a issue with the credit card processors: They charge more for handling ex-US shipments, because of a higher risk, but if you put a foreign address in they make no attempt to verify the address. But what do they care? They don't accept any risk, except for the customer payment of the card. Everything else is risk to the merchant.

    So our typical response is to request a photocopy of both sides of the credit card e-mailed or faxed to us. Often, the customer never replies in cases where we suspect fraud. We've only had one customer refuse to fax us the card (hey, we already had her number, what's the big deal), and she ordered it to her home in the US and shipped it overseas herself.

    --
    Design for Use, not Construction!
  16. Politics and Greed by Creep73 · · Score: 3, Insightful

    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 world wide web started in the US as a government program so it is difficult to make the claim that it is "becoming more and more centered on the USA".

    These policies are an individual companies decision and they have the right to make such policies especially in the face of internet taxation.

    I wish that the internet was as free as it once was however politics and greedy governments are working to destroy it all. It is only going to get worse.

  17. Get someone in the states to ship it by siskbc · · Score: 3, Insightful
    That's what this fellow wants to do. he doesn't want to wait for the new Hungarian language instructions on the new iPod to be ready, he wants his iPod now and screw the fact he'll have to read the directions in English.

    Considering he's an American expat, I expect he prolly wants his crap in English anyway. I suspect this is the deal - he wants AMERICAN stuff while living in Hungary. Sorry, tho, that's just not how things work sometimes. The poster acts like this is some big US conspiracy to 0wnz0r the WWW, but it's generally a logistics thing - the few sales companies would get from Hungary isn't worth dealing with Hungary.

    Considering the US has anachronistic laws dealing with export control of encryption and such, as well as other problems, it isn't worth the trouble of having the main sales unit deal with each country. For big companies like IBM, they have a unit for each country that are (hopefully) experts in local issues. So really, the only people with problems here are US expats who want stuff in English instead of the local language. In other words, him.

    My advice to the guy would be to have some family in the states to order it for him and ship it. But complaining isn't going to help, and making it into some US vs. the world thing is silly.

    --

    -Looking for a job as a materials chemist or multivariat