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Consumer Reports: Online Retailers Better Than Walk-In Stores for Electronics Shopping

Posted on: Monday, 1 October 2007, 21:00 CDT

YONKERS, N.Y., Oct. 1 /PRNewswire-USNewswire/ -- Consumers shopping for a flat-screen TV, digital camera, computer, or laptop this holiday season, are likely to find a better price and selection online than in walk-in retailers, according to the November Annual Electronics Issue of Consumer Reports. CR's latest surveys, based on more than 90,000 purchases made between January 2006 and June 2007, found that online shopping was more satisfying for every category of electronics CR surveyed-even big-screen TV sets.

Despite this finding, most of CR's survey respondents still visited a brick-and-mortar store for major electronic purchases. This was often due to the convenience and face-to-face assistance offered by walk-in retailers. However, respondents did note that online shopping alleviates a prime irritant of in-store electronics shopping-the pitch for an extended warranty-which three-quarters of walk-in shoppers reported that they were forced to endure. Consumer Reports generally advises against purchasing an extended warranty. "Despite being able to see and even touch products in a walk-in retailer, readers who responded to our survey were generally more satisfied with the prices and selection they found online," said Paul Reynolds, electronics editor at Consumer Reports.

Two Online Standouts: Crutchfield.com and Amazon.com

Consumer Reports found that no single retailer has it all-the best prices, selection, product quality, and customer service. However, two-both online retailers-came close. Crutchfield.com and Amazon.com were among the highest- scoring retailers for electronics-each offering above-average selection, while matching the best walk-in stores for the quality of products they sell. While Crutchfield had higher marks for customer service, while Amazon had the better score for price.

Additionally, Consumer Reports recognized Crutchfield and Amazon for the quality of the sites themselves and their return policies. However, Amazon consumers who purchase from third-party merchants that sell on the site may have their own return policies, which may differ from Amazon's. There are also other sites and stores worth considering according to Consumer Reports. For example, warehouse club Costco was among the leaders for price, and often doubles the manufacturer's warranty. However, its online and walk- in stores were deemed to be less than inspiring when it came to product selection. Local independent stores had higher satisfaction scores than chains and other walk-in stores with their combination of decent prices and outstanding service.

Best Retailers for Key Products

Consumer Reports recommends that consumers should consider shopping at following retailers when purchasing for specific electronics:

Computers: Consider non-manufacturer Web retailers such as PC Connection, Newegg.com, TigerDirect.com, and Amazon.com for a wide range of brands. However, consumers may have less flexibility to customize their purchase than when buying from the manufacturer. Apple ranked at the top for direct Web sales by manufacturers and for retail stores.

TVs: Prospective TV purchasers should check out Amazon.com, Crutchfield.com, and other top-rated online retailers, as well as independent retailers and Costco walk-in stores, which ranked higher for satisfaction than familiar national consumer electronics chains such as Best Buy and Circuit City.

Digital cameras: Digital camera shoppers should look towards top online sites such as Crutchfield.com or Amazon.com. Shipping costs are less of an issue than with TVs and bigger items, and the online advantage in selection was even wider in CR's surveys.

Six Tips for Getting the Best Price on Electronics

1. Skip the extended warranty. Most electronic products are likely to outlive the period of an extended warranty without a problem. And if there is a glitch after the manufacturer's warranty expires, the cost of repair or replacement isn't likely to be much more than the amount paid for extended coverage.

2. Use shopping "bots." For comparing prices, use more than one shopping bot, such as BizRate, DealTime, MySimon, Shopping.com, or Yahoo Shopping. Be sure to include shipping charges in comparisons -- and tax in those states where the online retailer has a physical presence -- in comparisons.

3. Be cautious of very low prices. If a selling price is notably low, verify that the item isn't refurbished or gray-market -- goods diverted from other retailers or not meant for sale in the U.S. "Buying Gray" typically voids the manufacturer's warranty.

4. Look for online coupons and other deals. After searching the Web for just a few minutes, CR found a coupon at http://www.couponcabin.com/ good for 20 percent off a purchase of $100 or more at Crutchfield.com, one of CR's top- rated online retailers. Some Web sites, such as FatWallet and Ebates, offer both online "affiliate" discounts or an option to get cash back on purchases.

5. Negotiate. Consumers can save money, possibly $50 or more, if they are willing to haggle on the price of electronics. Another recent CR survey found that about a third of shoppers had negotiated the price of an electronics item within the past three years and most succeeded at least once.

6. Use a credit card. Buying with credit provides wider protection than any other form of payment. Some cards, such as American Express, even extend the product warranty, often by a year and others may let consumers rack up other rewards such as extra frequent-flyer miles or cash-back.

The full report with comprehensive Ratings of a variety of retailers that sell electronics and computers is featured in the November 2007 issue of Consumer Reports, which is available wherever magazines are sold and portions of the story are free online at http://www.consumerreports.org/.

NOVEMBER 2007

The material above is intended for legitimate news entities only; it may not be used for commercial or promotional purposes. Consumer Reports(R) is published by Consumers Union, an expert, independent nonprofit organization whose mission is to work for a fair, just, and safe marketplace for all consumers and to empower consumers to protect themselves. To achieve this mission, we test, inform, and protect. To maintain our independence and impartiality, CU accepts no outside advertising, no free test samples, and has no agenda other than the interests of consumers. CU supports itself through the sale of our information products and services, individual contributions, and a few noncommercial grants.

Consumer Reports

CONTACT: Lauren Hackett, +1-914-378-2561, lhackett@consumer.org, MelissaM. Valentino, +1-914-378-2432, mvalentino@consumer.org, both of ConsumerReports

Web site: http://www.consumerreports.org/

Source: PRNewswire-USNewswire

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