Former E-Store MD comes under fire in new venture

The previous managing director of E-Store, Steven Spilly, has described as "unique" a series of hitches in a transaction involving his current employer, PCAdvantage.

Spilly has responded to ZDNet Australia's enquiries after the organisation was contacted by a disgruntled customer of PCAdvantage, Ian Haynes. Haynes described his attempt to purchase a Dell laptop from PCAdvantage as the "worst online buying experience [he'd] ever had".

Spilly, who acknowledged the veracity of some of Haynes' complaints, defended the practices of PCAdvantage. "This is definitely a unique case," he said. Since starting operations in November, PCAdvantage has increased order numbers to 682 for the month of January, according to Spilly. "Our return rate is under half a percent," he said.

In a three-page fax sent to Spilly and ZDNet Australia   Haynes outlined his two-week ordeal in purchasing a Dell Latitude L400 Laptop from PCAdvantage. His complaints included confusion over the extent of the warranty, an additional unauthorised charge to his credit card, receiving goods with the wrong specifications and difficulty in obtaining refunds. During the dispute Haynes filed a formal complaint with the NSW Department of Fair Trading.

Spilly put the most serious accusation, the unauthorised charge on Haynes' credit card, down to administrative error. "Basically, he spoke on the phone and faxed the order, so it was entered twice inadvertently by us," he said. "We immediately refunded the second amount." Haynes notified PCAdvantage of the additional charge on the 30 January and received a refund on 4 February.

Haynes' said he chose to order by fax to ensure in writing the laptop came with a three-year warranty, and indicating the purchase order was void if PCAdvantage couldn't provide written evidence of a three-year warranty before or after delivery. When Haynes viewed the Web site detailing the specifications of the laptop it indicated the product had a one-year warranty at the top of the page, but claimed it had a three-year warranty at the bottom.

The laptop only comes with a one-year warranty, and Spilly offered Haynes a discount to compensate.

When Haynes picked up the laptop he found it had different specifications to his order. "I was not able to verify the system configuration or any promised discounts and noted that the unit had a DVD (a more expensive option) not a CD as ordered and chose to terminate the transaction as I did not want to return to Brisbane with many aspects of this transaction unresolved and a system that did not meet the specification of my purchase order," stated Haynes' fax.

"He picked up the unit and it had a DVDROM instead of a CDROM drive, which is better, but for some reason he brought it back," said Spilly. "We've taken the unit back and refunded in full." He said this was outside their normal return policy, as it was considered a 'change of mind' purchase.

Haynes is somewhat mollified by the refund, but is concerned that similar activities "give online retail a bad name". "Even though this matter has been resolved, I think there are other people who may not be as difficult a customer as I am and many not be treated in the same way," he said.

Spilly said that PCAdvantage dealt with the matter very quickly once management became involved. "I would say no retailer in the country would be as responsive as we were in this case," he said.

ZDNet Australia is extremely interested to hear from our readers on their sales and support experiences with tech companies. If you have a story to tell, please e-mail us at edit@zdnet.com.au

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Talkback 6 comments

    Hmmm - nearly identical proble ...Anonymous -- 06/02/03

    Hmmm - nearly identical problems- but not with PCAdvantage- with DELL. One direct,two through"onsellers" (after many calls)Problems appeared to be that Dell was/is "virtual" so all orders are processed through Malaysia. Orders are built to spec, or previous orders put together- but not delivered/cancelled are supplied. Hence discounted prices. Problem is description codes and contents of boxes not necessarily correct. Inventory code and Order code problems.Boxes shipped Malaysia to here - not opened until delivered.So every complaint mentioned in email(except double billing) identical, as well as different storage capacity,desktop not tower,and software not installed, and two of the three registered to other buyers in warranty

    As the story mentions E-Store ...Anonymous -- 06/02/03

    As the story mentions E-Store I thought I'd tell my sad story :)

    I've had a recent 'bad experience' with E-Store, here's my story :

    On the 13/12/02 (Friday night) I ordered a Logitech Dual Optical Mouse because they had the best price I could find and more importantly, according to their website, they had the item in stock ... about 240 of them in fact. The following Tuesday (17/12/02) the money for the mouse was debited to my credit card so I was reasonably confident I would have it by xmas. Alas, that was not to be.

    During the months of December / January I emailed E-Store support 4 times (30/12/02, 02/01/03, 08/01/03, 22/08/03) but all messages were ignored, or presumably so because I didn't receive any replys. In between these emails I rang the store 3 times (no dates or names as I didn't write any down). The first 2 times I was informed that they were waiting on stock from their supplier, even tho the website continued to advertise the mouse as being in stock. I checked the website several times and the number in stock varied between 238 and 244, at no stage was the site updated to reflect the fact that there actually was zero stock.

    The third time I called (03/02/03) I was told again that the store was waiting on stock and because they had been waiting for awhile it was likely that the item had been discontinued. I asked for my money back and was sent a cancellation form which I filled out and emailed back. The form stated that it would be 14 - 21 days for a refund to be processed and possibly another 3 to 5 days for the refund to appear on my credit card.

    I guess this means that by the end of February I should have my money refunded so I can actually buy a mouse from a store that I consider reputable, but I'm not holding my breath on the refund.

    This was my FIRST shopping experience with E-Store, it's also my LAST !!!

    I have used on line purchasing ...Cameron Sharp -- 07/02/03

    I have used on line purchasing in it's varying forms for about the last 2 years now.
    I am yet to encounter any problems at all. Famous last words! Yes probably, but the fact remains, some customers will never be happy.

    If the warranty was such an important feature of Mr Haynes purchase, Why did he go through with the purchase when he claims that he noticed the discrepancy on the web page?
    Why wasn't he willing to compromise on the DVD player when clearly he had come out on top. The company seems to have acknowledged the error. What is there to be achieved by playing 'you said...'in a such a situation?
    I agree the credit card charge was absolutly out of order, however I have never heard of an online transaction being reversed in FIVE days. I mean thats how long the banking system takes to authorise the payment let alone the reversal. Don't blame the Computer Co. for problems caused by the banking system. You got your money back Why are you trying to give the Co. bad press when the only real complaint you have has been resolved?
    Here is someone trying to stay off unemployment benifits and having a go. Starting up a new company is the toughest thing you can do in this day and age, and combine that with selling computers and you can kiss goodbye to having a real life. And do you know why? Because you spend hours on the phone trying to passify people whom seem set on destroying your hard work and good reputation. One little mistake and no matter how much you try to make things right, it is never going to be good enough for the likes of Mr Haynes. A three page letter to the media because at the end of the day you got a DVD-rom instead of a CD-rom!! You make it impossible for people with a valid complaint to get heard. You are the reason why companies are locking down behind a wall of internet silence and answering machine hell. You sir are the reason I choose unemployment benifits rather than continue the struggle to make a living in retail.

    I have used on line purchasing ...Anonymous -- 07/02/03

    I have used on line purchasing in it's varying forms for about the last 2 years now.
    I am yet to encounter any problems at all. Famous last words! Yes probably, but the fact remains, some customers will never be happy.

    If the warranty was such an important feature of Mr Haynes purchase, Why did he go through with the purchase when he claims that he noticed the discrepancy on the web page?
    Why wasn't he willing to compromise on the DVD player when clearly he had come out on top. The company seems to have acknowledged the error. What is there to be achieved by playing 'you said...'in a such a situation?
    I agree the credit card charge was absolutly out of order, however I have never heard of an online transaction being reversed in FIVE days. I mean thats how long the banking system takes to authorise the payment let alone the reversal. Don't blame the Computer Co. for problems caused by the banking system. You got your money back Why are you trying to give the Co. bad press when the only real complaint you have has been resolved?
    Here is someone trying to stay off unemployment benifits and having a go. Starting up a new company is the toughest thing you can do in this day and age, and combine that with selling computers and you can kiss goodbye to having a real life. And do you know why? Because you spend hours on the phone trying to passify people whom seem set on destroying your hard work and good reputation. One little mistake and no matter how much you try to make things right, it is never going to be good enough for the likes of Mr Haynes. A three page letter to the media because at the end of the day you got a DVD-rom instead of a CD-rom!! You make it impossible for people with a valid complaint to get heard. You are the reason why companies are locking down behind a wall of internet silence and answering machine hell. You sir are the reason I choose unemployment benifits rather than continue the struggle to make a living in retail.

    Don't hold your breath for a r ...Laurence Crew -- 11/02/03

    Don't hold your breath for a refund. I was eventually forced to get a refund from my bank as a Visa chargeback, after waiting more than 2 months for E-store to refund me, all the time ignoring my messages and requests!

    This was after a similar non-delivery of a TFT monitor, which I initially waited 4 weeks for.

    The monitor was ordered in October 2002, and I finally got my $1500 back last week.

    How on earth can a company dir ...Anonymous -- 21/03/03

    How on earth can a company director(Steven Spilly)go into voluntary liquidation oweing 2 million then open up another company a few months later!!
    Where are the start up dollars coming from?

    Perhaps in this case voluntary liquidation was very voluntary, seems to me to be a quick way of making a cool few million.

    BTW: Spilly is not his real surname, its Spillitopolous - this week anyway.

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