Singaporeans turn to online shopping to beat the financial crunch.

Amid the financial crunch and long faces, there is a silver lining for bargain-hunters. This economic downturn will be like no other—in the way savvy Singaporeans can save bucks by shopping online, that is.

The savings to be had from clicking on a mouse can range from a dollar or two on DVDs or books to hundreds of dollars for electronic items.

Sure, online shopping is not new, but unlike 2003 when the last big downturn hit Singapore—what with the Sars epidemic and Iraq war—it is now a lot easier and attractive to do.

This is the case whether you are buying something here or off websites in the United States, despite the drawback that most merchants there do not accept credit cards issued outside of America. Also, most do not ship goods outside the US.

However, local ‘concierge’ services such as ComGateway, started by DBS Bank in 2005, along with Globeshopper and also vPost—launched by SingPost about five years ago—have sprung up to ensure seamless cyber-shopping for Singaporeans.

They provide customers with a domestic shipping address in the US to enter on the merchant’s website when ordering goods online. The orders are then delivered to that address and the concierge service ships them to Singapore.

Another factor making online shopping more attractive is the cheaper US dollar. Back in 2003, one Singapore dollar was worth about 57 US cents. But these days, a local dollar buys you 68 US cents. So anything from music CDs and clothes to kitchenware is now both cheaper and easier to obtain.

Sales manager Eugene Lim has saved a bundle by buying goods online from the US. “I have been shopping online for the last three years and I save 40% to 50%, compared to what I’d pay locally. I have bought books, CDs and DVDs that cost half of what they cost in Singapore.”

Human resource assistant Fanny Neo who buys from American women’s fashion brand www.forever21.com once every three months, is attracted not just by its newer and wider ranges “but most importantly, it is because I get to save money as the clothes are much cheaper”.

Consumers can save even more when they pool their overseas online purchases to reduce shipping costs. Such enterprise even has a name: an online spree group.

Public relations associate Cheryl Chan, who joins online spree groups of between eight and 12 buyers, says: “I can save up to S$30 (US$20) a dress just by joining the groups.”

Citibank, which introduced Globeshopper, a tie-up with logistics firm DHL and e-commerce solutions firm Borderlinx, has seen sign-ups grow by the thousands each month. More than 10,000 people have signed up since it started in March.

Citibank Singapore’s head of portfolio management and sales Jacquelyn Tan says: “Our shipment volume has increased significantly since the launch of Globeshopper. Our monthly sales is a mid-six figure every month.”

Still, there are pitfalls.

Some products such as DVDs, TVs and games may run on a different electronic platform or code and will not work in Singapore. Not all warranties are international either.

While some goods may be cheaper, add shipping costs, say, S$20 (US$13) for a 1kg package from the US, and it might not add up to a saving. So buyers have to do their sums thoroughly. (By FRANKIE CHEE In Singapore/ The Straits Times/ AsiaNews)

Additional reporting by Jocelyn Lee and Cheryl Tan.