Online, goods prices are all over the map

A college student, Seo Yoon-jeong, 24, logged on to an Internet shopping mall to buy a digital camera for her vacation. She wanted to buy C-720UZ model of Olympus Korea Co., but found the prices in the online shopping malls varied from 448,000 won ($380) to 685,000 won. “The price difference was huge,” said Ms. Seo. “I wondered if they were same products or if there were a defect in the cheaper one or if the sales conditions were totally different.” The price of electronics goods does vary widely on Internet shopping malls. It is easy to find 20 to 30 percent price differences; there are some cases where the cheapest price is only half the most expensive one. According to Mymargin.com, a site that compares prices at registered online malls, the price of a 29-inch flat television by Samsung Electronics Co. varied from 449,000 won and 750,000 won yesterday. The price of an air conditioner by LG Electronics Inc. also showed a huge gap, of 565,000 won, between the lowest price of 845,000 won and the highest one. Internet shopping malls usually buy products from large distribution firms that sell products from many companies, rather than buying from the manufacturers directly. The prices that these firms charge can differ by 10 percent depending on the order quantity, the credit rating of the shopping mall and the payment method. A large supply company provides one refrigerator for 685,000 won while another one asks 780,000 won for the same model. Internet shopping malls also require customers to pay a commission on their sales, and that additional fee can vary between less than five percent and sometimes more than 20 percent. Smaller malls generally set lower commission rates to attract more customers. “Customers should check the after-sales service, shipping fee and installment interest as well as the price itself,” said Lim Jong-hyun, an officer at ZeroMarket Co., which runs an Internet shopping mall. “It is also a good idea to check if the mall is a member of the Korea E-Commerce and Direct Marketing Association and if it is displays the ePrivacy mark.” The Korea Association of Information and Telecommunication awards the ePrivacy mark to online shopping sites that have agreed to a series of standards to protect customer information in the course of a transaction. by Kim Chang-gyu