Best shipping practice for high-value item (domestic and international)?

[argy_eyes]

Experts,

I sell moderate-priced items in support of a small museum. These are usually donations in the $50-200 range. Now I've got a donation that sells regularly for $1000+, often to buyers in Europe or Asia. I want to make sure delivery on this item doesn't result in a loss to the museum and disappointment to the donor. My main concern is coverage for an INR situation. 

I would appreciate inputs from sellers with experience with sales of this kind. Some of my questions: 

1] Domestically, I am thinking USPS Priority Mail (the item is under 2 pounds) with signature confirmation. Is this sufficient to cover an INR? What about a damaged shipment - should I buy insurance, from what company?

2] Internationally, I'm thinking USPS Priority Mail Express (I've found that tracking beyond the the local customs office is spotty with basic International Priority Mail) with signature confirmation. Same questions as above about insurance.

3] How is an INR or damaged shipment claim handled? In other messages sellers have complained that eBay refunds buyers when a shipment does not arrive, but if the shipment then arrives (late) does not refund the seller.

Thanks,

Mike

[divwido]

Pack it up, take it to the shipper and ask them what they recommend.

The issue isn't shipping, it's the buyer.  Shipping can be registered and insured, but the buyer cannot.   That's where your problem lies.  But I would start registered and insured.

[tools*]

Domestically, USPS Priority Mail with insurance and signature required. Ship through Pirate Ship and get USPS Commercial Plus rates and pay 80¢ per $100 for insurance, with no monthly fee.

You can't ship a package with a value over $749.99 internationally through eBay or PayPal and be covered for an item-not-received case. eBay and PayPal require an online-viewable delivery signature and no such option exists for international shipping. You should use the eBay Global Shipping Program for anything that sells for $750+.

[argy_eyes]

@tools* , @divwido 

Thanks for your inputs - they got me on track. 

One follow-up: what do you see as the distinction(s) between eBay GSP  and either FedEx or UPS (e. g., why do international buyers dislike GSP)?

Mike

[supercharger-parts]

GSP charges more than they would have paid normally for duties/vat is what customers have told me.  Also just be aware, FedEx and UPS prices shown on eBay will likely be inaccurate, make sure if you use either of them to get your own quote, do not rely on the amount eBay would calculate or you could be in for a huge surprise bill after it's delivered. 

Selling expensive items is always a risk not just for an item not received, but scams as well for instance item not as described where they claim you shipped them something else.  Proceed with caution.

[pjcdn2005]

I can only speak for myself but as an buyer in Canada, I would prefer an international item to be sent by the gsp versus Fedex or UPS....especially for an expensive item.  Couriers charge a percentage of the item's value as a brokerage fee and they also have other extra fees that the postal system doesn't have.  With the gsp, the fees are all known and paid for upfront. 

As a seller, I would be wary of sending internationally via a courier as a buyer might not be willing to pay those high fees and in the case of UPS, it might result in them refusing the parcel and you would have to pay for the item to be sent back. With Fedex, they often deliver the item and then send the bill to the buyer later on.  If the bill doesn't get paid, I believe that then try and recover that money from the sender.

One of the problems with the gsp is that delivery can take longer and the tracking after the gsp center is not always consistent.   The advertise it as a service with international tracking but that isn't always the case.  Also, the gsp can be more expensive than the mail service when a package weighs less than 8 ounces.  That is probably less true now than it was a few years ago as usps has raised his rates but people still believe that the gsp is overpriced.  Last but not least...many items are delivered by mail without ever being assessed by the customs in that country so no extra tax or duty has to be paid.  The gsp charges upfront so the buyer is guaranteed to be charged those fees.  I don't necessarily agree with all of these reasons but you did ask why buyers didn't like the gsp and those are the complaints that I've seen.

[argy_eyes]

@supercharger-parts  and @pjcdn2005 

Thank you guys for your detailed and helpful replies. They have given me a good overall picture and informed me of things I would not have known otherwise. 

It's a close call, but I think I'm leaning toward FedEx with notification to buyers in the description about the last courier in the chain taking a commission based on the item price (I am amazed that FedEx, UPS etc allow couriers to do this).

Mike

[soh.maryl]

Not sure I understand the statement that you're amazed that FedEx etc "allow couriers to do this".

It's not up to them.  Every entity that handles the package needs to get paid.  

[pjcdn2005 · Accepted solution]

@argy_eyes 

For international packages, a courier company prepays any duty and tax due when the package is cleared through customs.  Then, when they deliver the package, that amount and fees for clearing the package through customs, for paying the fees etc are collected from the buyer.  That money goes to to the courier company, not the courier. I'm fairly sure that at least one of those fees are based on the value of the item. 

However, ig an express service is used and duty is prepaid, then most of the extra fees aren't charged.

When I pick up an international package from the post office in Canada, they charge me a $9.95 brokerage fee so it is not an uncommon practice. However, couriers charge more.

[argy_eyes]

@soh.maryl 

---

@soh.maryl wrote:

Not sure I understand the statement that you're amazed that FedEx etc "allow couriers to do this".

It's not up to them.  Every entity that handles the package needs to get paid.  

---

Thanks for your observation. My understanding of this topic is limited, but increasing!

From the shipper's point of view, I assumed that I would pay for the delivery when I shipped the package, and that the recipient would not have to pay for any part of the delivery service (i. e., that's my obligation). Of course taxes or customs duties would be the recipient's obligation.

If some other delivery service were employed by FedEx to complete the delivery,  my intuition (apparently wrong!) would be that FedEx should include that in their charge to me. The thing that really amazed me was that this delivery service charge was based on the value of the shipment (rather than size or weight or some other criteria).

Mike 

[argy_eyes]

@pjcdn2005 

Thanks for your detailed explanation. I think I'm beginning to see the whole picture. 

To summarize:

I pay FedEx to deliver the package in Canada.

FedEx pays the customs fees and taxes when it arrives in Canada.

The "Courier" collects those fees when the package is delivered and remits them to FedEx.

But! FedEx doesn't pay the Courier for their services, so the Courier charges the recipient for delivery.

Also, even if one goes to the Post Office in Canada, the Canadian Post Office charges a brokerage fee.

Finally (the fundamental point), in the GPS program, most of these "Courier" fees are not charged.

There is not much here in the USA that is more efficient or rational than its Canadian counterpart, but this may be an exception.

Mike 

[pjcdn2005]

@argy_eyes 

The first part is correct.  You pay FedEx to send a package to Canada and they use a custom broker to figure out taxes and duty.  They are responsible for paying to those amounts to customs Canada

Then I may have confused you. When I refer to the courier I mean FedEx, not some separate entity. So FedEx delivers the package to the buyer and collects the taxes and duties that are due.

 If you used an express service there may not be other fees as they usually include those fees in the original delivery charge that you paid.  But if it is a non express service the buyer would also have to pay fees associated with FedEx having collected the tax and duty for them.   There is no extra delivery charge...these are fees based solely on custom charges.  If there were no duty or taxes owing, then there would be no extra fees.  It would be best for you to check the FedEx site to see when and what fees they will charge.

I hope that I explained it better this time.

🙂

[argy_eyes]

@pjcdn2005 

Thanks PJ. Your follow-up helped a lot. Mike