International Shipping Cost
My buyers pay calculated shipping using my full eBay shipping discount. It’s been flawless with domestic orders. When I sell something international the calculated shipping cost is always higher for the buyer than what I pay. Sometimes $5 or more dollars. My items are only a few ounces. No handling charge. Does anyone know why? Should I be refunding my buyers the overcharge?
20 comments
wastingtime101
·1 year agoMost likely @intimatesinc it's because you're offering direct shipping with USPS First Class Package International and that's the service the buyer is paying for, but you're purchasing labels for a service called eBay International Standard Delivery (EISD). Label page defaults to EISD because it's less expensive.
EISD is a semi-direct shipping method, very different from eBay International Shipping (eIS).
With EISD you ship to a hub in the US, but you are responsible for the package end-to-end, unlike eIS where all you have to do is get it to the US hub then forget about it. EISD is only available when the buyer selects a direct shipping method and does not select eIS.
To definitively tell you if my above educated guess is correct or not, I'd need the item number, destination country, and the first FOUR letters/digits of the tracking number.
dbfolks166mt
·1 year agoMost likely @intimatesinc it's because you're offering direct shipping with USPS First Class Package International and that's the service the buyer is paying for, but you're purchasing labels for a service called eBay International Standard Delivery (EISD). Label page defaults to EISD because it's less expensive.
EISD is a semi-direct shipping method, very different from eBay International Shipping (eIS).
With EISD you ship to a hub in the US, but you are responsible for the package end-to-end, unlike eIS where all you have to do is get it to the US hub then forget about it. EISD is only available when the buyer selects a direct shipping method and does not select eIS.
To definitively tell you if my above educated guess is correct or not, I'd need the item number, destination country, and the first FOUR letters/digits of the tracking number.
pjcdn2005
·1 year agoAfaik there is no way for the seller to have EIS as a default. Using my Canadian address, the 4 items I put in my cart from the op still show prices for ebay international shipping, first class international and Priority International. But when I go to check out it shows me First class int'l and Priority only. EIS isn't an option in checkout.
@intimatesinc The four items of yours that I put in my cart did show a shipping discount for first class international. Each item was originally about $17 shipping and once the shipping was discounted, each item was about $6.09 shipping for a total around $24. That is about the correct shipping cost for a 12 oz package to Canada. When the buyer selected first class and the label defaulted to eBay International Standard Package EISD, the price for you probably would have been slightly less expensive.
As I mentioned at the beginning of my post, if I had wanted to purchase those 4 items I didn't have the option of using EIS, the other ebay international shipping service. eBay does sometimes discount shipping costs for that as well but I can't tell if they would in this case because they didn't give me the option in checkout. I think it is a good idea to give your buyers the option of First class international or EIS so if I were you, I would delete the Priority international option altogether from your listings as very very few buyers are going to be willing to be the cost of Priority anyway. The cost for those 4 small items to Canada would have been $59 Priority. Perhaps if you deleted Priority, then buyers would be given the option of first class and EIS when they checked out.
pjcdn2005
·1 year ago@wastingtime101
@dbfolks166mt
Sigh..this becomes more complicated. When I chose Priority as my shipping option for each of those 4 item mentioned in my previous post, the EIS option that wasn't there previously suddenly popped up on 2 items. Once I choose EIS as my shipping option on those two items, EIS popped up as an option on the other 2 items. Very odd. When I chose EIS as an option for all items, the cost was actually more expensive as they only somewhat combined the shipping cost. The shipping total that way was $50.
dbfolks166mt
·1 year ago@wastingtime101
@dbfolks166mt
Sigh..this becomes more complicated. When I chose Priority as my shipping option for each of those 4 item mentioned in my previous post, the EIS option that wasn't there previously suddenly popped up on 2 items. Once I choose EIS as my shipping option on those two items, EIS popped up as an option on the other 2 items. Very odd. When I chose EIS as an option for all items, the cost was actually more expensive as they only somewhat combined the shipping cost. The shipping total that way was $50.
Something really strange going on. OP should probably either go with EIS and eliminate the other international shipping alternatives or opt out of EIS and ship direct.
intimatesinc
OP1 year agoThank you! Years ago priority mail international was popular, even for light items. Looks like shipping trends have changed.
intimatesinc
OP1 year agoI think you are correct. Last package was going to Canada. ESUS first 4. Buyer paid for direct first class mail delivery. Package was shipped eBay standard delivery ( EISD).
Looking at the above example, shipping cost and delivery time aren’t that different between the two services. But most likely varies by destination.
Am I understanding this correctly?
dbfolks166mt
·1 year agoI think you are correct. Last package was going to Canada. ESUS first 4. Buyer paid for direct first class mail delivery. Package was shipped eBay standard delivery ( EISD).
Looking at the above example, shipping cost and delivery time aren’t that different between the two services. But most likely varies by destination.
Am I understanding this correctly?
intimatesinc
OP1 year agoIt’s not showing me international options when I look at my listings. I took off everything under International except First class. I’m still enrolled in eBay shipping. When creating and editing my business policy that’s not something I can see. I know how to opt out just wasn’t sure I should yet. If I opt out do I select ship to all locations? Or just check the ones I see under first class?
dbfolks166mt
·1 year agoIt’s not showing me international options when I look at my listings. I took off everything under International except First class. I’m still enrolled in eBay shipping. When creating and editing my business policy that’s not something I can see. I know how to opt out just wasn’t sure I should yet. If I opt out do I select ship to all locations? Or just check the ones I see under first class?
intimatesinc
OP1 year agoThank you for that. Something is wrong. That item only weighs 5-6 oz. I only have first class international as a shipping option & have EIS enabled.
intimatesinc
OP1 year agoI opted out of eBay International Shipping. I can always opt back in. I’m curious if this will help.
reallynicestamps
·1 year agoWhat I’ve noticed is my International shipping always goes to someplace in the US first.
Your buyers are using freight forwarders.
From the customer's point of view, their shipping cost is lower, because their purchases are bundled and shipped together, and the import fees are handled by the forwarder. In some countries the forwarder may also be more secure than a single package moving through whatever system is in place there.
However, the customer is also giving up significant protections from eBay's Money Back Guarantee.
EIS is a freight forwarder, run for eBay sellers. It is a Seller Protection program. The advantages to the buyer are about the same as hiring their own forwarder.
While it is certainly possible to refund those $5 overages to the customer, it may also be a good idea to put it in with your Cookie Jar Insurance.
Which is just a cute way of saying put a few dimes (or $5bills) from every transaction into a virtual cookie jar as a self-insurance premium against transactions that go pear-shaped, whether because of customer scams, delays in transit, lost packages, or you shipping the purple beeblefletzer to Zambia instead of the green beeblefletzer.
dbfolks166mt
·1 year agoFirst if you are passing on the eBay discounted rate to your buyers I assume you realize that is costing you money since you are paying FVF's on the shipping cost. You are using the EIS for international shipping so the foreign leg of the shipping is calculated by EIS and the invoice to the buyer is sent by EIS incorporating both your domestic leg cost to get it to the hub and the cost of the foreign leg which EIS purchases and manages. Are you actually doing direct international shipping as an alternative to EIS??
It's up to you as to whether you refund the buyer for any excess shipping cost but deduct what you are paying in FVF's before you do that. I have on occasion refunded buyers when there is a significant difference in cost because I found a cheaper method to ship the item without impacting the quality of the shipping. This usually happens when I can ship an item in a priority mail flat rate envelope cheaper than the cost of the ground advantage the buyer paid. This happens on occasion due to the fact that I am on the east coast and some of my buyers have been on the west coast.
intimatesinc
OP1 year agoThank you for replying. I don’t have a lot of current international shipping experience (5 transactions at most). I offer both direct to buyer and also eBay’s international service. What I’ve noticed is my International shipping always goes to someplace in the US first. A long time ago when I shipped international it would go directly to the buyer aside from customs checks. I’m sure a lot has changed.
Regarding the fvf on shipping, I charge a small domestic handling fee to cover that. A cheaper shipping service (PS) was recommended to me. I just haven’t dove into it. Now that USPS offers business rates to everyone isn’t that also an option? My items never weigh over 9-10 ounces so I only use USPS because it’s convenient.
dbfolks166mt
·1 year agoThank you for replying. I don’t have a lot of current international shipping experience (5 transactions at most). I offer both direct to buyer and also eBay’s international service. What I’ve noticed is my International shipping always goes to someplace in the US first. A long time ago when I shipped international it would go directly to the buyer aside from customs checks. I’m sure a lot has changed.
You are located in Calera, Alabama and it would not be unusual for the tracking, whether it is direct or through EIS, to show multiple stops in the US while it is on it's way to the buyer. If it is going through the EIS program it will go the the EIS hub in either Illinois or California. At that point your job is done unless the package arrives at the hub damaged.
Regarding the fvf on shipping, I charge a small domestic handling fee to cover that. A cheaper shipping service (PS) was recommended to me. I just haven’t dove into it. Now that USPS offers business rates to everyone isn’t that also an option? My items never weigh over 9-10 ounces so I only use USPS because it’s convenient.
The handling fee is another option to cover the FVF's on the shipping. If the PS you are referring to is Pirate Ship their rates have about the same discount as eBay. I have not purchased labels on eBay in a LONG time but utilize Pirate Ship and simply upload the tracking information into the eBay order. I pay for those labels using a cash back credit card which further reduces my cost.
I too seldom use anything but UPS to ship with both UPS and FedEx are infamous for unilateral surcharges after the item has been shipped and delivered.
intimatesinc
OP1 year agoWhen I think the buyer purchased direct shipping (because of what they paid) the label prints out addressed somewhere in the US. 10 plus years ago it was called the global shipping program. Not sure if it’s basically the same now but with a different name. I definitely need a refresher course. I’m opted into EIS (?) could that have a negative impact on my international sales?
reallynicestamps
·1 year agoNot sure if it’s basically the same now but with a different name.
Basically yes.
I definitely need a refresher course.
From an International perspective, there are no great differences.
EIS has more Seller Protections than the GSP.
I’m opted into EIS (?) could that have a negative impact on my international sales?
Only positive, since now your overseas (and Canadian ) customers can see* your listings, and have their import fees folded into the cost of shipping** which means no surprises at delivery.
*Unless you specifically Block a country.
** sort of- in any case they are paid before the shipment leave the eIS plant
dbfolks166mt
·1 year agoWhen I think the buyer purchased direct shipping (because of what they paid) the label prints out addressed somewhere in the US. 10 plus years ago it was called the global shipping program. Not sure if it’s basically the same now but with a different name. I definitely need a refresher course. I’m opted into EIS (?) could that have a negative impact on my international sales?
The global shipping program is not direct shipping. Direct shipping is when you print out the label and it is going directly to the foreign buyers international address. The global shipping program was eliminated shortly after the EIS program was initiated.
There are pro's and con's to the EIS program with the biggest + being the virtually unlimited seller protection you receive. If I was not in the EIS program there would be a LOT of high risk countries that I would not sell/ship to. Probably the biggest negative to the EIS program is the buyer has to pay for two shipping legs, yours for the domestic leg to the hub and then the one from the EIS hub to the buyers address. There have also been some issues with combined shipping but eBay was supposed to be fixing that issue.
mam98031
·1 year agoEIS is a great program. I encourage you to read about it and decide for yourself if it will work for you. It takes almost all the risk for international shipping off the sellers.
Feel free to come back and ask questions if you need to.
https://www.ebay.com/help/selling/shipping-items/setting-shipping-options/ebay-international-shipping-program?id=5348
https://pages.ebay.com/internationalshippingprogram/seller/terms/