Source: Straits Times, Digital Life. Wednesday, October 1, 2008 by Irene Tham

Online Shopping Woes Persist

Want to buy from US merchants? E-concierges to bypass them may not be the complete solution, as IRENE THAM finds out.

All the talk about cyberspace opening new frontiers does not cut ice where online shopping is concerned.

That's because merchants in the United States "blacklisted' non-domestic shoppers, citing mismatched addresses and unethical re-selling of purchases as reasons for the block.

So, even smart buyers who use virtual concierge services can be sniffed out.

Traditionally, Singapore buyers could not shop at certain US websites because they accept only US-issued credit cards and ship only to US addresses.

These merchants include retail chain Macy's cosmetics and fragrances retailer Serphora and apparel maker Abercrombie & Fitch.

Enter e-concierges like Globaleshopper, vPost and Compateway. They buy products on customers' behalf, then ship them here. Shoppers can charge to their Singapore issued credit cards.

Thre Virtual shopping buttlers also provide customers with a US forwarding address, which they enter when filing purchase forms on the US merchants' websites and to which the e-buttlers park the goods before shipping them here.

That's where the handiness of e-concierges end: Customers' orders are still being rejected by US merchants despite their using the virtual shoppers.

All three firms recognize the problem.

Phua Ngee Teck, assistant vice-president at vPost, said that orders are rejected primarily because the shipping and billing addresses are different.

"Some US merchants randomly conduct order verification through their Address Verification System," he said.

The merchants include Sephora and Macy's.

In an email reply, the retailers cited a mismatch of billing and shipping address as the reason for rejecting orders made through e-concierges.

An Internet customer service officer at Macy's offered al alternative solution.

"If you would like to place an order using a foreign billing address and an USA shipping address, you must call our 1-800-289-6229 number."

Foreign-issued credit cards can be used, but "the account used for payment must be able to be verified through one of our two credit card verification companies."

If foreign credit card insurers are not able or willing to cooperate with its verification procedures, orders are then cancelled.

Protecting overseas franchises

Some merchants also turn up their noses at the US shipping addresses provided by the concierges.

"This is out of fear that third parties may resell their merchandise overseas," said a Citibank spokesman.

Vitibanks, together with logistics firm DHL, and British e-commerce solutions firm Bordelinx, powers Globershopper.

The US address that Globeshopper provides is unique to each customer. each address, or suite numbers, is like a pigeon hole in its warehouse at Wilmington, Ohio.

Similarly, Comgateway provides a unique suite number for every customer. it's warehouse is in Portland, Oregon.

The Citibank spokesman explained that US merchants have to honour existing distribution and franchise agreements with overseas distributors.

When contacted, an online consumer service personnel from leather footwear and handbag maker Coach echoed this point: "Since we have a presence in your country (Singapore), we are unable to ship there."