eBuyer problems....should we be concerned?

  GaT7 20:19 16 Aug 06
Locked
  dms05 20:48 16 Aug 06

Probably.

As a customer you will get your goods but the supplier of those goods may not get his money.

The probable reason for ebuyers apparent troubles is in the comment made by ebuyers Marketing Director 'She added that during the past nine months it (ebuyer) had put signicant investment into a state-of-the-art, purpose-built warehouse and automated order fullment system, in line with expansion plans'.

ebuyer are simply strapped for cash having put money in to the new facility and one suspects that they have been using money destined to pay suppliers to help their cash flow. They aren't the first, and won't be the last, to do so.

If I understand the situation properly ebuyer seem to use third parties to insure their debts and it's those third parties who are having serious doubts about the level of cover they are offering.

ebuyers real problem will be if suppliers start to refuse to supply them, or insist on cash rather than normal credit terms.

Buy on your Credit Card, that gives you cover in case of problems.

Warranty cover for most items (ie PC's, Laptops etc) comes from the manufacturer in any case.

  GaT7 20:56 16 Aug 06

Thanks dms05, that helps me understand the situation much better.

Aren't credit card purchases only covered above a certain amount though? G

  ade.h 20:57 16 Aug 06

£100.

  leo49 21:03 16 Aug 06

Explains the current rash of Happy Hour deals to improve cashflow.[one tomorrow from 11am]

  Forum Editor 00:04 17 Aug 06

comes from the manufacturers, but only in respect of problems caused by faults in manufacture - your contract is with the retailer (in this case ebuyer) and not with the manufacturer. If you buy something from a retailer and there's a fault with it, you must contact the supplier, not the manufacturer. In some cases (notably monitors) you'll often end up dealing with the manufacturer, but this doesn't mean that they (the manufacturers) have any legal obligation to you under consumer law.

As far as the ebuyer credit insurance problem is concerned, what has happened is that the two companies used by Ebuyer to insure their credit debt have expressed concern at the company's failure to provide accounting data when requested. One of those companies has completely withdrawn all cover, and the other one has halved its cover.

Actions like that are of concern to the companies who supply Ebuyer, because it means that if Ebuyer is unable to meet its commitments to suppliers, those suppliers cannot look to the credit insurers for their money - in other words it creates a loss of confidence, and that can be expressed in a refusal to supply. If that happens, the future can look pretty grim - all retailers rely on credit in order to trade, and if their credit line fails it can be difficult to carry on.

We don't have access to the facts relating to this story, and it would therefore be very unwise to speculate. I for one hope that all will be well for Ebuyer, they're one of the best online retailers in my opinion.

  dms05 07:06 17 Aug 06

FE - I agree with your sentiments about ebuyer. I've bought from them over the years and they have been honest and reliable suppliers. They are experiencing a blip at the moment and need support in trading back to their normal credit status. I will continue to use them. I assume you will also.

You are of course correct about warranty and the supplier been responsible. In my experience, for major items, it's the manufacturer who actually fullfils the repair (via the retailer) and would probably continue to do so in case of a problem with the retailer.

  namtas 08:35 17 Aug 06

In the meantime all potential customers would be advised to only purchase via credit card.

  oresome 09:32 17 Aug 06

There's a shiny new eBuyer warehouse sitting alongside the M62 on the way to Hull which bears out what the company spokesperson says.

  vinnyT 11:35 17 Aug 06

"Asked why his company let the situation deteriorate to such an extent"

Euler prob used the enote system;-p

(in case anyone is in any doubt, that was a joke, don't take seriously)

  vinnyT 11:44 17 Aug 06

On a serious note, if only purchases over £100 are covered by CC co. business maybe hurt by customers not placing their many smaller <£100 orders with ebuyer, I think this would be a shame, although, understandable.

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