How to save money online.

The internet marketplace can be rather scary. But it doesn’t have to be. Radioshack, Best Buy, Circuit City, Office Max, Staples and the like should not be viewed as your primary source for computers and electronics.

Several years ago if someone needed some computer equipment, they would go to Sears or Radioshack. Computers were expensive, and a novelty for many. Their practicality had not yet matured for many families and small businesses. When someone wanted to purchase computers or electronics, they did so at a local store and they paid whatever premium that store demanded. TIMES HAVE CHANGED. Computers and electronics are utilized more than ever and prices are falling. Now we live in a truly global marketplace.  One internet company may order in bulk, buying tens of thousands of pieces of equipment at a time. If they have no storefront to maintain, and they sell that equipment directly to the consumer, you can save a lot of money! How do you make sure you are buying a well-priced item from a reputable company? What things should you consider before making your decision to pay a premium at a local store, or buy for less online?

There are a few basic things to consider.

1. Age. How long has the company been in business? This information isn’t always easy to find. Many scams start business after business because their ratings reset every time they do. It’s not that they’re rated a good company, they just aren’t rated bad. Many consumers will mistakenly put large orders with a company despite the fact that they have no rating. See #6 below to learn more about various companies.
2. RESEARCH! Go to google.com or click on the search google text box on this page. Research the company name and put the word review or problems in the search box. Many times you can see a list of people who had problems with that company. Remember though, just because one person rants about their issues with a company it doesn’t mean that company was necessarily 100% to blame. It will soon become apparent if there is a trend among the complaints.
3. Speed. This can be a huge factor in deciding who to order with. My favorite online ordering company is NewEgg.com and it is partly to do with their speed of service. If I place an order, many times it is at my door within 2 – 3 days, without paying for higher priced priority shipping. Some companies cannot answer when you will receive your package because of shipping variables. MOST, if not all, should at least be able to tell you when the order will be processed. Some businesses simply process all orders 2 or 3 days after the order comes in because of their size. If possible, find out beforehand when they expect to process the order. It will help set your expectations.
4. Communication. The internet is full of tech-savvy people looking to make a buck as conveniently as possible. So they build stores with beautiful FAQ’s and detailed customer support forums. The problem is we the customers are impatient. We tend to want answers immediately. For this reason, most of the calls to online retailers are simply not needed. If you the customer spend time to read their site, checking their policies and reading descriptions in full, you may find you don’t need to call them after all. Many retailers simply remove phone support altogether, opting for email. Although inconvenient to some, this helps them throttle the requests and allows them to spend less money on support.
5. Return policy. Some sites have mandatory restocking fees for returned items. If you aren’t SURE you are getting the right item, be wary of the company return policy. If there is a problem with the order, you will probably have to pay to ship the equipment back. If shipping is a significant fee for your product, it may not even be worth the cost, now you are stuck! Make sure you research what their return policies are.
6. Use credit cards! Credit card companies are no strangers to fraud. A large percentage of their resources go to preventing fraud and educating their customers. What many consumers forget though, is that merchants that use credit cards have made an agreement with the credit card companies! If those merchants break the rules, then you report them, they could lose their card contract POTENTIALLY MAKING THEM GO OUT OF BUSINESS! It is in the merchant’s best interest to keep the card companies happy. If you properly report fraudulent activity to the card company you could save many more people lots of hassle down the road.
7. Reputation and price. Word of mouth is the best advertising possible. Ask your techno-savvy friends where they shop. Check out places like The Better Business Bureau. The online version of this resource can be found at http://www.bbbonline.org/. Also, check sites like http://froogle.com and http://shopper.yahoo.com. These search companies list millions of products from thousands of companies and often have powerful price comparison tools. It is in their best interest to figure out which businesses are good, and which are bad. They may offer rating systems which will help guide you through the experience of previous customers. Remember, generally if there is a LOT of reviews and they are almost ALL good, the merchant is a good egg. If there are FEW or NO reviews or only one or two reviews and they aren’t so great… the merchant may be a good egg, ready to be discovered and just growing.
8. Purchase size. Maybe that stereo price is a little to good to be true. Maybe the company has only a few ratings and your gut says NOT to spend $350 on that $800 stereo. Your gut is usually right. If in doubt, don’t. If you still want to tread through the water, make a small purchase. Test the company out. If your $20 memory card gets delivered in a timely fashion… then maybe think about going bigger. Let them earn your trust. SLOWLY.

I hope these guidelines can help someone. Let me know if you have significant information to add to the list.
Have you had a good shopping experience? Would you like to share which Merchants you really like and tell us why? Please do! I will be making a Recommended Merchants page in the future with this information.