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Jeweller Internet shop: pro and contra

Any more the first year legislators are discussed introduction of licensing of the Russian Internet shops. As a matter of fact - a step correct. It is necessary to raise trust level to Internet trade.

In virtual space all conditions which the state shows to trade in the "real" world should be satisfied. Registration of the legal person, the check, the contract, waybills if necessary. In a word, all as in usual shop.

However in Russia always want as better... Licensing, as a matter of fact, should solve two problems - to remove from the market of "bad" players and to develop game rules for "good" participants of the market. But in practice the picture is corrected - for "good" players business management becomes complicated, and "bad" it facilitates a life.

We Will try to understand all subtleties of this sphere of business, for Internet trade in general and jewels in particular - business rather specific.

the General concepts

The Concept "Internet shop" is not defined by the Legislation of the Russian Federation. Nevertheless, exists the settled classical understanding of "Internet shop" (sometimes it names "online shop" "electronic shop", "network shop", "Internet shop", "E-shop" etc.), in that sense in what it is understood in the most developed countries, is an interactive web site, in which:

  • orders for the goods and services are advertised and accepted;
  • various variants of payment of the ordered goods and services are offered the visitor, instant payment through web-money is sometimes possible;
  • the visitor has possibility to be registered by means of a login and the password and further to use data already entered by it at an input in site sections;
  • the visitor has possibility to draw the account on payment of the goods and the services, serving simultaneously acknowledgement of acceptance of the order;
  • operative delivery of the ordered goods and services is carried out;
  • the guarantee and insurance of the ordered and paid goods and services is given;
  • observance of confidentiality of made transactions is provided;
  • legal bodies can make transactions both physical, and.

Internet shop, taking into account the Russian validity (backwardness of the legislation regarding the Internet, extent of distances, economy, traditions, degree of development of bank system etc.), - a business site special case.

World practice

For the second quarter 2006 the sales volume of jewels and hours on the Internet giant on sales, site Amazon.com, has increased more than twice, in comparison with the similar period of 2005.

The Retail dealer brilliants and jewels through Internet Blue Nile also was happy with results of the auctions in the second quarter 2006. Though the company net profit has grown slightly - from $2,8 million one year ago to $3,1 million, pure sales have increased by 30 %, having reached $56,9 million, in comparison with $43,8 million last year.

Less large retail dealer brilliants through Internet Abazias also informs on sharp growth (on 49 %) sales for the sum $1,1 million On site Abazias.com is exposed more than 80000 brilliants in cost about $350 million, the majority of them has certificates GIA, AGS or EGL.

Results of the researches spent by Institute of Luxury (New York), show, that the Internet became the most preferable way of search of clients before fulfilment of purchase by them, thus almost 90 % of consumers search for luxury goods and their possibility to get online, and the whole 80 % prefer this way to all to another. According to the same researches, the Internet and e-mail are for the firms trading in luxury goods, the best ways to offer the goods and services to men of means.

In spite of the fact that in the West retail trade through the Internet became usual business, in Russia it-lajn sales make a small share of total amount of realisation of jewels. By some estimations, the annual sales volume of jewels through the Internet at us in the country makes less than 0,5 %. It means that retail trade through the Internet should do a long way simply to catch up with the colleagues in traditional shops.

the World sales volume of jewelry through the Internet makes about $2,1 billion, or 3,5 % from total amount of sales of the ornaments, equal $60 billions in a year.

Advantages and lacks the Internet of sales and purchases

For realisation of jewels the Internet shop has following advantages:

1. The Internet shop works 24 hours a day, 365 days in a year, without interruption for a dinner, without days off and holidays.

2. To virtual show-windows of shop any buyer who is in any point of a planet on any continent can receive access.

3. The professionally competently created Internet shop can work completely independently, practically without service.

4. The Internet shop has no restrictions on the virtual area. It is possible to place as is wished many goods or to describe any quantity of services.

5. The owner of Internet shop can lease the virtual trading areas the same as also the owner of usual shop.

6. The Internet shop allows to communicate with the potential clients who are as much as far, in a mode of real time.

7. Term and cost of creation of Internet shop incommensurably more low, than usual shop.

8. For Internet shop creation it is not required receptions of numerous permissions and licences. It is not checked by the fire inspector, sanitary control and other services.

9. Development of mobile devices of access to the Internet (a mobile phone, a handheld computer etc.) allows to get access to Internet shop from any point of a planet. Without dependence from a site of the potential client.

The Important advantage to online jewellers is possibility to show all assortment of the goods. For this purpose the buyer should "click" only on the electronic mouse. Thus there is no necessity to have all assortment of jewels in stock.

Acquisition of jewelry online as though is specially intended for buyers of jewels - men. Remained alone with the computer, they can investigate hours different possibilities without necessity of infinite and time of tiresome walks on the shops, traditional conversations with sellers which frequently know about sold jewelry not much.

"Plus" for buyers are the attractive prices which can be more low, than in "offline" shops. The low price is reached as a result of great volume of purchases from manufacturers. Besides, unlike usual jeweller shop, Internet shop expenses much more low (for example, at the expense of rent of a smaller premise in the sizes, smaller number of employees, etc.).

At the same time, unlike real shop in jeweller Internet shop the buyer cannot "feel" the goods: in overwhelming majority of cases the ornaments presented in online shop, it is impossible to try on and look full-scale. Same mistrust to a TV shop at most population parts, in particular, speaks.

The Colour rendition of ornaments with inserts from the precious and colour stones presented on a show-window of Internet shop, deforms real colours as depends both on quality of initial photos, and from monitor options a little. In many cases the buyer does not have not enough volume information on the goods presented in Internet shop. To the owner of virtual shop technically inconveniently also is economically inexpedient to make frequent updating of the goods, in comparison with replacement of the goods in usual shops.

We Will notice also, that psychologically Russian wholesalers while with watchfulness concern possibility of acquisition of a large consignment of goods through Internet shop, and retail buyers - an overwhelming part of the population - have got used to live "from the salary to the salary" and make purchases, not giving in to momentary impulses, and "properly".

One greatest pride of Russia - its immensity. But enormous distances and backwardness of private parks of small aircraft impose serious restrictions on an overall performance of Internet shops. Many foreign Internet shops, in particular, in Europe, the USA, Canada and Australia, widely use small aircraft. Thereby due efficiency of delivery of the goods ordered in Internet shop is provided.

Internet trade "Minuses" also are full absence of system of insurance of the transactions paid through the Internet, insufficient stability of bank system (each inhabitant of Russia has tested it on itself), characteristics of the communication lines, remaining dearness of connection to the Internet, etc.

In 2005 in the European centre of consumers (ECC) has arrived 3775 complaints connected with trade on the Internet. In comparison with 2004 their quantity has increased by 74 %. The Principal cause of discontent of buyers - the irresponsible relation to them of sellers, and is frequent also frank swindle. At occurrence of problems with orders, buyers cannot often contact the seller, and receive indemnification for the rejected goods even more difficult. The complaint of 8 % - people could not cancel the order in Internet shop.

Delivery

Formally today there are some ways to forward the goods to the consumer, but employees of the majority of Internet shops confirm: the most effective is only the express service. In some cases shipment at own expense of the ordered product is possible. Post services in jeweller shops do not use.

In the majority of Internet shops use own express services, sometimes - services of the companies specialising on delivery. Among the basic domestic players in the market of express services the following is allocated: the independent transport company "Fast walker" providing delivery in more than 150 cities of Russia (skorohod.ru), express service of St.-Petersburg "Zest-express train" according to the contract delivers purchase for three days, PX Post - the Russian company with English management. Large transnational operators are DHL, UPS, FEDEX. Advantage of domestic delivery services that they at least are twice cheaper though "speed" more often more low.

Many Moscow jeweller Internet shops prefer to work exclusively in Moscow and area and only the few across all Russia. So it only in words in jeweller Internet shop can be bought the goods, being "in any point of a planet". That is a site to look - please. But as to goods delivery abroad to carry a parcel, including payment of all customs duties, so it is expensive what officially to deliver the goods even in the near abroad it is not meaningful. "After the goods reach the appointment countries, additional custom charges are possible. These costs become covered at the expense of the customer, we do not supervise these gathering and we can not expect their sizes", - the standard answer, which will give practically everyone Russian (not only jeweller, but also any another) Internet shop.

As own delivery services of capital jeweller Internet shops work mainly in the city territory, similar localisation allows to offer express delivery services (till three o'clock), and within MKAD, as a rule, delivery appears free in the event that the client gets the goods on defined (from 1500 rbl.) the sum. If it is a question of Moscow suburbs or other regions here for a speed the buyer pays. However, if to mean Moscow suburbs, that, with the account concerning the low prices of delivery (from 100 to 500 roubles depending on distance) and their decrease at the large order, actually push the client to make purchases for the big sums. That once again shows possibility of extraction from negative situations of some benefit.

On the other hand, it is obvious, that almost 90 % of all purchases in Internet shops are carried out by inhabitants of Moscow and Northern capital. Or the order is carried out by the nonresident buyer, however receives the goods its "authorised representative" in Moscow. So buyers frequently and aspire to minimise the problems connected with reception of purchase. Otherwise to visit usual, "off-line" shop much easier.

Return

The Buyer has the full right without an explanation of the reasons to refuse reception of the goods at the moment of delivery and to return a product to the courier, having paid thus the cost of delivery specified in accompanying documents.

At detection of the goods of inadequate quality the buyer of Internet shop has the right to replacement of these goods when due hereunder. According to the law of the Russian Federation "About protection of the rights of consumers" within 14 days, not considering day of purchase, at presence at it commodity or the cash voucher. In Internet shop should be stipulated:

1. Where (to what address) it is possible to return the got goods. An operating mode.

2. Where it is carried out guarantee and post-garantye repair of the goods. What documents should be at the buyer for warranty service.

3. Where also to whom to direct the request for return of the goods of inadequate quality with instructions of the reasons of return.

4. An order of return of the goods of the inadequate quality got by the buyer in a case:

- The wrong order the buyer of the goods;

- Errors at selection of the goods because of sellers of Internet shop;

- Errors in the Internet shop catalogue.

5. An order of registration of return of the goods for the above-stated reasons and refund terms.

Work of Internet shop regarding return and an exchange of the goods and rendered services is regulated by the same norms and rules, as for usual shop. The basic legislative document - the Law of the Russian Federation "About protection of the rights of the consumer" ¹2300-1 from 07.02.1992 (in last edition from 17.12.1999 and from 30.12.2001), Methodical recommendations about the account and registration of operations of reception, storage and holiday of the goods in the trade organisations (Letter of Roscomtorg from 10.07.96 ¹1-794/32-5) according to which buyers have the right to return before the bought goods.

Payment

As a rule, jeweller Internet shops offer following variants of payment of the order:

1. Payment by cash to the courier: goods and delivery payment is made to the courier by cash, in roubles, after survey of the delivered goods and acquaintance to accompanying documents.

2. Payment by a credit card (VISA International, Mastercard International, Diners Club International and JCB International, American Express), as a rule, is carried out with use of payment system Cyberplat. Also the variant when employees leave to the address of the client with the special equipment is possible, allowing to perform operations with bank cards. By the way, the payment provided in some on-line shops on a credit card in a certain measure plays an insurance role.

3. Payment by bank remittance: it is possible to pay the order in branch of the Savings Bank of Russia. Payments of the order by bank remittance it is carried out only after the coordination with the manager of cost of the order and delivery. On an e-mail address or the receipt is by fax sent, to pay which it is possible in any branch of the Savings Bank of the Russian Federation. It is important to pay attention that at realisation of transfers the bank can raise the commission which size is necessary for specifying in bank branch.

4. Payment can be made at company office.

In the Russian Federation the system of electronic payments is developed poorly. The digital signature only starts to take root. Systems of electronic payments take commission fee. Thus the big sums, in the absence of the legislation regulating given area of mutual relations between the seller and the buyer, the buyer will risk hardly. Unfortunately, while the organisation of instant payment of the goods and services with the help web-money - not only a difficult technical problem, but also a difficult legal problem, therefore practically anybody from jeweller Internet shops does not use this kind of payments.

Ten Russian Internet shops

http://www.gold4u.ru / In this Internet shop products of several suppliers are presented, however the collection most part is made at the Moscow jeweller factory "Likas M" (www.lucas-m.ru). Open Company "your Gold" is the exclusive distributor of Joint-Stock Company "TF" Lukas of M "in a network the Internet. On a site, except the wide catalogue of jewels, there is a necessary information: the Certificate about State Registration of the legal person, the Certificate on statement on the special account in Probe to chamber of the Russian Federation, legal and actual addresses, phone, a fax, e-mail.

http://www.ezoloto.ru/ to Pay the ordered product on this site 5 % of the discount for clients of Citybank are possible on system HandyBank, and also. It is possible to buy "the Gift certificate to any celebration" for the sum from 2 to 6 thousand roubles. The Internet shop E-gold spends the wide partner program, inviting to cooperation other Internet shops similar on subjects, various search systems etc. Meet grammatical errors.

http://www.olin.ru/ One of the most visited Internet shops. The wide choice of the goods, system of discounts on OLIN.RU can reach 8 %. The visitor of shop can become the designer of the jeweller ornament itself. On a site in section "Collect a bouquet" there is a possibility to collect own bouquet of the natural semi-precious stones faceted by firm Signity. It is necessary to choose product model, and then, trusting in the taste to pick up for it inserts. Across Moscow delivery of created "masterpiece" will occupy no more than 36 hours from the moment of the order.

http://www.fashiongold.ru/ In this shop can execute the order for manufacturing of jewels not only for private persons, but also for the organisations, including with use of firm symbolics of the organisation and him logo. Carry out order delivery in all regions of Russia, Belarus and Ukraine the specialised express service having corresponding permissions to this appearance of activity.

http://www.oromio.ru/ Internet shop Oromio is in the Jeweller Center "Golden the Gross". It is the commercial project of Open Company "SilverLand" which is the manufacturer, the importer and the official representative in the Internet of some the Russian and foreign firms which are engaged in manufacture and realisation of jeweller ornaments and hours. Delivery of jewels is carried out by specialised express service the SPSR-EXPRESS TRAIN. Delivery across Moscow within MKAD (200 rbl.) is carried out next day after its registration.

http://www.intergold.ru/ One of features of this Internet shop is carrying out of photocompetitions. Production of companies "Grodes" and "Sadko" is presented. The Gift certificate - the simple, successful and widely used decision. Together with the gift sum the constant of discount 10 % the discount for all purchases is in addition given.

http://www.kupizoloto.ru/ To the full it is impossible to name this site Internet shop. More likely, it is a virtual platform for manufacturers and the trade, united on one resource of the reference on factory-manufacturer, or on trading organisation. Except the numerous jeweller organisations in the list manufacture and furniture sale ", and also" the Japanese kimonos "appear".

http://www.magicgold.ru/ Internet shop "Magic of Gold" - the project of company "Gold" which in turn are retail division of large jeweller holding "Silver age". The ordered goods can be received and in usual shop of this network, but owners of shop warn, that "in view of features of technological process, express delivery of the order issued in Internet shop, will be faster carried out, rather than delivery of the product which have liked you in shop (in case of its absence there)".

http://www.golden-shop.ru/ Except contact phone on a site there are no data about this shop. Also there is no package of necessary documents. The limited choice of jewels.

http://www.gold-mix.ru/ Internet shop "Gold-mix" is created in 2006 on the basis of existing trading company "Amalgamma". At reception of the order paid by the organisation through the settlement account, it is necessary to have the POWER of attorney from the organisation and the passport of the person to which the power of attorney is given out.

the Resume

Each visitor of Internet shop should know, that the owner of a site really exists, that the Internet shop has a legal address where, in case of occurrence of problems, it is possible to address. An obligatory condition is registration in authorities (the Certificate on statement on the special account, given out Russian State Probe chamber) on the right to be engaged in similar business.

Having put itself to the place of the buyer, on a question: "As the ideal jeweller Internet shop should work?" - the answer is obvious:

  • obligatory presence of all necessary documents for realisation of trade by jewels;
  • operative performance of the order;
  • an optimum parity of the price and quality;
  • system of payment convenient for the buyer;
  • wide assortment and the best degree of quality of the goods;
  • an individual approach to each client;
  • constructibility and efficiency in the decision of arising questions;
  • system of memory discounts;
  • gift packing.

For the companies which are engaged in manufacture and trade of jewels, the Internet shop is one of the most perspective ways of conducting and development of business, decrease in an overhead charge and increase in profit of the organisation.


The Source: the Jeweller.Ru (www.jeweller.ru), on March, 16th 2007



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