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The Honolulu Advertiser
Posted on: Thursday, November 16, 2006

AKAMAI MONEY
Online shopping is different

By Greg Wiles
Advertiser Columnist

Q. I'm thinking about doing my Christmas shopping online this year. Are there any tricks I should know?

A. You're not the only one thinking about doing this.

According to the National Retail Federation, the trade group that represents most major U.S. retailers, the number of people planning to shop on the Internet will rise to 47 percent of consumers from 36 percent last year.

But your question is timely because you need to get going soon if you plan on shopping on the Web. The Friday after tomorrow is the traditional start of the holiday selling season, when retailers prime the shopping pump by offering deep discounts on so-called doorbusters.

The day is termed "Black Friday," because the myth that it is the first day of the year some retailers supposedly go from recording red ink for the year to recording black ink — turning a profit, in other words. If you want to take a sneak peak at the Black Friday ads, at least those set to run on the Mainland, go to http://bfads .net.

Some people contend that the online shopping season starts the Monday after the Thanksgiving weekend because that's the day people return to work and use high-speed Internet connections on their employers' computers to do their shopping during lunch hours. Some online retailers have even tried to take advantage of that by offering specials that day.

Here are some things to keep in mind while you cruise the Internet looking for gifts:

  • If you are a first-time online shopper, you might want to stick to the online stores of retailers you know until you get the hang of this. But there are other online-only stores that merit attention, such as Amazon.com's online emporium, or specialty sites such as Redenvelope.com. Ask friends or family members what they recommend.

  • Retailers' Internet stores may carry more items than are carried in their physical locations. Good luck finding a hot tub in a Wal-Mart store. There are more than a dozen listed at Walmart.com.

  • Check out price comparison sites such as Google's Froogle, Shopzilla.com, Shopping.com and BestWebBuys .com. These sites typically allow you to find the cheapest price while giving some sort of consumer rating for the store.

  • Be sure to check whether the Web store ships to Hawai'i. Want to order one of those funny "Easy" panic buttons sold by Staples Inc., the world's largest office supplies seller? Forget it. They don't deliver to Hawai'i. If the site does allow shipping to Hawai'i, typically they will note that it may take a couple of days longer.

  • Free shipping offers may not be available to Hawai'i. Be sure to read the fine print on these offers. Amazon.com allows free shipping on many orders of more than $25, but some merchandise doesn't qualify.

  • Because of complexity of sales taxes across the country, you probably won't have to pay sales tax if the site is in another state and has no operations in Hawai'i. This also serves as an argument against shopping online if you care deeply about your local community. If you buy from a merchant in another state, you forgo paying taxes that support local government services and ignore stores that provide jobs in your area.

  • Make sure you are on a secure site before giving your personal and credit card information. You can look for a key or closed-padlock icon at the bottom or top of your browser to signify this, or "https" in the Web address.

    Shopping via the Internet has its advantages, but you'll have to weigh those against the advantages of shopping at a bricks-and-mortar store. At the store, you can feel the merchandise, try things on, talk with the staff, get the stuff without waiting and return merchandise without fussing with the mail.

    Chances are that in any case, you'll probably use the Internet at some point before Christmas to research a gift you're thinking about purchasing. The more money you're looking to spend, the more likely you'll be online doing research about it.

    Greg Wiles discusses financial matters on KHNL News 8 between 5 and 6 a.m. Thursdays.

    Do you have a question about personal finance, taxes or other money matters? Reach Akamai Money columnist Greg Wiles at 525-8088 or gwiles@honoluluadvertiser.com