Are fees charged on global shipping cost?

[quixoticpony]

I sold an item through GSP.  The amount I received from the buyer was about $131 with shipping to the eBay hub in KY. When I went to print the label, the "order details" panel said $197. I assume this includes the intl shipping paid by the buyer TO EBAY, NOT to ME. Will fees be based on that much higher value, due to intl shipping over which I have no control??

[lepke1979 · Accepted solution]

The shipping fees will be based on the cheapest method you offer.

For instance, if you offer $5 First Class...$25 Next Day...$100 GSP to Singapore (made up numbers)...and someone buys the next day or international option. The fee will be based on the $5 label.

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4364&mkevt=1&mkcid=1&mkrid=7...

Final value fees on shipping
Final values fees on shipping are based on the cost of the shipping service the buyer chooses. However, if you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the final value fee is calculated based on the cheapest domestic option you offer.

If you only offer 1-day or international shipping but no cheaper option like domestic shipping, you'll be charged a final value fee based on the service the buyer chooses.

If you're in China, Hong Kong, Indonesia, Israel, Japan, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand, or Vietnam and your item isn't located in the US, final value fees on shipping are always calculated based on the shipping option your buyer chooses.

[quixoticpony]

I still don't really understand this typical eBay speak (written by lawyers to be a unclear as possible), instead of just a yes or no answer. And I realize you are quoting from the ebay "information" page. But I hope that what you said first is true, and the fee will be based on the US shipping cost. Guess I'll just have to wait and see.

[argy_eyes]

@quixoticpony 

As an potential user of GSP,  I am curious about the invoice: 

1] If I read the post correctly, the extra $66 was an increment on the shipping charge that occurred after the buyer received their initial invoice. Right? Do you have any idea why this happened? If this happens commonly with GSP, I can imagine a lot of buyers who would be more that a little miffed.

2] It is possible that the extra charge was VAT?

Thanks!

Mike

[lepke1979]

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@quixoticpony wrote:

I still don't really understand this typical eBay speak (written by lawyers to be a unclear as possible), instead of just a yes or no answer. And I realize you are quoting from the ebay "information" page. But I hope that what you said first is true, and the fee will be based on the US shipping cost. Guess I'll just have to wait and see.

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It's easy enough to go to transaction details to view the somewhat itemized fees.

In your case you will also see a conversion rate fee and maybe VAT if going to Europe.

[stephenmorgan]

It does not matter what you actually paid for shipping.  It is the amount you charged for the shipping that the fees are based on. 

The international buyer has other cost to ship to their country and you should not be charged fees for their additional shipping cost.  That money goes to eBay's GSP and would not be correct for eBay to charge you a commission on the product they are selling the buyer.

If you look at you Transaction Details Report it will show you exactly what the fees are you were charge and how they were calculated.

[buyselljack2016]

@quixoticpony 

You are in MP.

Your fees are charge when the buyer pays.

Go to seller hub.

Hover on "payments"

Click on "transactions" to see what fees you paid.

[quixoticpony]

After checking on my account page, it seems like the fee was charged on the US portion of the shipping only. I guess this transaction stuck out to me b/c the amount on the shipping label page was so much higher than the amount I got.  I have used GSP for over a year with no issues. The whole point is so we, as sellers, do not have to worry about all the intl B S such as customs, VAT, etc. I try not to think too much about ebay fees b/c it just makes me angry.  they are ridiculous and predatory. but just the cost using a virtual monopoly as a selling platform.

[luckythewinner]

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@quixoticpony wrote:

I still don't really understand this typical eBay speak (written by lawyers to be a unclear as possible), instead of just a yes or no answer. And I realize you are quoting from the ebay "information" page. But I hope that what you said first is true, and the fee will be based on the US shipping cost. Guess I'll just have to wait and see.

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You did not get a "yes or no" answer because the answer is not a simple yes or no.  The answer is "it depends upon whether you offer a cheaper domestic option or not". 

The information you were quoted is accurate, did answer your question, and does not require a lawyer: 

"if you offer 1-day or international shipping as well as a cheaper or free option (like domestic shipping), the final value fee is calculated based on the cheapest domestic option you offer."

If you offer a domestic shipping method that is cheaper, then the final value fee is calculated using the cheapest domestic option you offer.

If you only offer 1-day or international shipping but no cheaper option like domestic shipping, you'll be charged a final value fee based on the service the buyer chooses.

If not, the final value fee is calculated using what the buyer chooses. 

You are not in China, Hong Kong, Indonesia, Israel, Japan, Macau, Malaysia, Philippines, Singapore, Taiwan, Thailand, or Vietnam, so that part does not apply. 

[lacemaker3]

@lepke1979, the link you provided is for sellers whose payments are processed by PayPal.

@quixoticpony is in managed payments, so the fees are calculated a bit differently.

It's still true that if the seller offers several shipping options, the fees are calculated including the cheapest shipping option available, even if the actual shipping the buyer paid for was more expensive.

Here's the information about GSP fees, for both sellers and buyers:

https://www.ebay.com/help/selling/shipping-items/setting-shipping-options/global-shipping-program?id...

and here is the link for selling fees for managed payments sellers:

https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822#section2

[inhawaii]

Buyer pays the extra GSP charges. You pay no fee on those extra charges. You only pay fees on the standard shipping charges, what i call the "first leg" of the shipping to get the package to Erlanger, KY.

[born-again]

If you use the global shipping program now, they charge an addition 1.65% "International Fee".  I just sold something for $1700 to Canada, and they charged me a total 14.22% FVF.  I had to pay to insure it to get it to Erlanger, KY, $31.79 because if something happened to it on the way, it is irreplaceable & I would be liable.  So with that included, I lost 17.1% of this sale and the buyer had to pay 16.55% on top themselves.

You might say I should've offered for them to pay for the shipping (which I already added to the price), but keep in mind they charged the buyer $281.36 for customs & taxes (likely a gross overcharge for the actual fees based on what customers tell me) NOT counting the extra shipping if I had made them pay the shipping to Erlanger instead of adding it in.  It saves me nothing either way as they steal 14.22% of my shipping costs also just like they normally do of taxes, but it looks better as free shipping to a potential buyer. 

There was no "International Fee" before managed payments, so that IS NOT an improvement in any way, shape, or form.  Don't tell me there was because I used it often & watched my fees closely.  And it is hidden somewhat because you have to hit a lot of buttons to see it, where before it was on one page showing all fees & they don't tell you how much they took in the email saying you have your "payout".   Not surprisingly, the International Fee amount adds up to almost exactly the same amount as if they had taken 10% of the fees they charged the international customer.  Such an interesting coincidence.   "How can we charge a FVF on those heavy customs & VAT charges? "  "Well, we can't do it openly, so how about we just make up a new "International Fee" for sellers?"  "Brilliant way to rob them blind & rob lots extra from both ends." 

That is what the global shipping program was for, so the cost & hassle went to buyers if they wanted things bad enough & we were saved from bad feedback or repercussions from any damage caused along the second leg of the journey, but now we have to pay for the privilege of them paying for the privilege of buying from the US, blood sucking leaches that hate small business.  I just found out about this & can't meet my margins.  I will have to shut down the global shipping program or create a fee for them, if possible, as I can't meet my margins.  This on top of the category disaster has ruined my online small business plans for the foreseeable future.  Now to build a website & advertise, sadly much cheaper now, eBay's loss as I was going to list over $100,000 of product within the next few months, but now I seriously doubt I will.

[downunder-61]

You have added to a thread from July with a wealth of incorrect information. 

[marnotom!]

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@born-again wrote:

There was no "International Fee" before managed payments, so that IS NOT an improvement in any way, shape, or form. 

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I know you don't want us telling you, but there was, and still is, an "international fee" from PayPal.  They just aren't as transparent about it as Managed Payments is.

[reallynicestamps]

I'm in Canada so I am only on the receiving end of the GSP.

However, I have never seen a complaint from a seller than she was charged FVF on the GSP charges which are paid directly to the GSP and not to the seller.

@argy_eyes 

FWIW- those are not exactly shipping charges.

They cover the buyer's duty and sales taxes (VAT) as well as a charge from the GSP of about ~$5 which may cover their shipping costs.

Remember with GSP, your shipment is going to be palletized and shipped to the destination country on a single manifest with thousands of other shipments.  This brings GSP's shipping cost waaaay down. And if they occasionally charge too much for duty and tax or occasionally too little, it is likely their accountants have allowed for that too.

If the seller had shipped by USPS the buyer would be paying those import fees on delivery instead of upfront. No surprises.
If the US (or UK) seller charges domestic shipping rates for GSP buyers, that seems to be quite acceptable and reduces the cost to your international customer.