Warning for South African online stores

An increasing number of trademarked products are getting international warranties, making it more attractive for South African online shoppers to buy goods from major overseas marketplaces.

The development could prove a major challenge for local retailers, who will find it difficult to compete on product pricing.

Online shoppers who frequent international e-commerce stores like Amazon.com may be aware that it is often possible to find products sold in South Africa at a fraction of the price.

At the time of publication, MyBroadband found the Samsung Galaxy S24 Ultra 256GB was selling for $1,101.72 (R19,420) on Amazon.com, with all taxes, shipping, and delivery included.

The cheapest price we could find for the same model from a South African store was R21,699 on Takealot.com.

Over the years, MyBroadband’s price comparisons have shown that this is often also the case for laptops and certain computing components — including storage drives, RAM, mice and keyboards.

The higher local prices have often been attributed to additional costs that South African distributors and suppliers incur on shipping, storage, and after-sales support.

For a long time, the risk of buying a product from an overseas store like Amazon.com has been that you might not receive local warranty support if the product has any manufacturing defects.

Typically, manufacturers only honoured a warranty in the country of purchase.

For a product bought in the US, a customer may have to ship the product back at their own cost and also pay for the return shipping.

With globalisation making international trade and shopping far easier for end-users, some manufacturers have seen an increased need to offer global warranties.

This has become particularly common for laptops, with Acer, Apple, Asus, and Lenovo offering international warranties.

As long as the company has an authorised local repair provider, you should not need to send your laptop back to its country of purchase for repairs or replacement.

Michalsons Attorneys’ Jesse-Lee Wrensch told MyBroadband that international warranties were “definitely becoming the norm.”

“Many products are becoming more standardised across regions and most countries are adopting similar product standards,” Wrensch said.

Wrensch said the impact of these kinds of warranties is far-reaching for both consumers and retailers.

“For consumers, you find that they’ll have more options to purchase from and more information to make better-informed choices,” Wrensch said.

“For retailers, however, there will be more competition in the market and local retailers might feel pressured to either reduce their prices or offer matching warranties in order to compete.”

International warranties can boost sales

International warranties are typically only offered once a brand has established a strong presence in a particular country — either through its own operations or partners.

Adams & Adams senior associate Melissa Morris told MyBroadband that international warranties had become a transformative solution to concerns over warranty coverage.

“These warranties offer convenience and flexibility, allowing consumers to use local service centres instead of shipping products back to the country of origin, saving both time and money on shipping fees,” Morris said.

She explained that global warranties were not only beneficial to customers but also offered advantages for global retailers and manufacturers.

“It strengthens the trust and credibility of international retailers by showcasing their dedication to customer satisfaction and their commitment to serving global clients,” Morris said.

“This can significantly improve their reputation, attract more international customers, and ultimately lead to increased sales and business growth.”

“Consumers are encouraged to discover and purchase products from various countries without worrying about warranty issues, thereby facilitating more cross-border transactions.”

She added that international warranties often provided extended coverage, usually lasting longer than standard warranties and offering consumers added security.

“This means that if a product fails after the usual warranty period, international customers can still have it repaired or replaced at no extra cost.