Global Shipping Program Shipping Costs?

[jerzee908]

What exactly are buyers charged?  

I took a look at a small item I have available that would cost $2.99 via First Class USPS and switched it to a UK location for shipping.  It said the shipping would be $16 and change with a estimated $14 import charge.  That is a lot of money.

Ebay doesn't know if I'm going to ship this small item (a pin) in a padded envelope or a box.  Is there going to be a higher cost for shipping on the buyers' end if its in a small box?  Is it cheaper for them if if were in a padded envelope?  I always feel comfortable shipping stuff in boxes no matter what.  

I never really thought about this until I had a small issue with a buyer that I have already resolved, but its making me think twice about using the Global Shipping Program.  I know there is already people out there that hate it.  It does have some good sides, but to be honest I never really gave thought to what a international buyer is actually charged for shipping.  

[missjen831]

The buyer will be charged whatever is shown on the listing. If you didn’t specify any package dimensions then I think they go back category averages. Doesn’t matter how you actually ship the item. 

[jerzee908]

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@missjen831 wrote:

The buyer will be charged whatever is shown on the listing. If you didn’t specify any package dimensions then I think they go back category averages. Doesn’t matter how you actually ship the item. 

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I don't specify package dimensions.  So is the price they are showing the price if it were shipped in an envelope or if I use a small box, will the buyer be charged more than what is shown?

The issue I had with a buyer is that they were charged more than what was shown.  They sent me screen shots and all.  

[missjen831 · Accepted solution]

Whatever the buyer sees when they view the listing is what they will be charged. It doesn’t matter if you ship in an envelope or a small box. Whatever is in the shipping section is what determines the cost, along with the item price. Was the buyer charged currency conversion by any chance? That’s usually what the increased charge is. I haven’t really seen where the buyer was charged more, unless it was an auction. The final import fees aren’t shown until the auction ends.

[slippinjimmy]

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@jerzee908 wrote:

What exactly are buyers charged?  

I took a look at a small item I have available that would cost $2.99 via First Class USPS and switched it to a UK location for shipping.  It said the shipping would be $16 and change with a estimated $14 import charge.  That is a lot of money.

Ebay doesn't know if I'm going to ship this small item (a pin) in a padded envelope or a box.  Is there going to be a higher cost for shipping on the buyers' end if its in a small box?  Is it cheaper for them if if were in a padded envelope?  I always feel comfortable shipping stuff in boxes no matter what.  

I never really thought about this until I had a small issue with a buyer that I have already resolved, but its making me think twice about using the Global Shipping Program.  I know there is already people out there that hate it.  It does have some good sides, but to be honest I never really gave thought to what a international buyer is actually charged for shipping.  

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Buyers are charged 4 things.....

- Domestic shipping (what you charge to ship within the USA)

- International shipping, an amount Pitney-Bowes (who run GSP) decides is appropriate, it can be reasonably accurate IF you listing includes the weight and dimensions in the listing (calculated shipping), if that information has not been entered PB makes an estimate based on the category, this can be wildly inaccurate because items in some categories can vary a lot in size and weight/

- Import duty/tax, for the UK this is currently 20% of the declared value (selling price)

- A handling charge, that's the profit PB takes

GSP generally speaking is not a good deal for low value & light weight items but can sometimes be a good deal for heavier/bulkier items to some countries. It's not particularily fast either.

I had a look at that NY Giants ticket you are selling, $20 shipping and $32 import charges for something that could be sent to the UK in a plain envelope with stiffeners for about $2.

[godzilla_goose]

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@jerzee908 wrote:

What exactly are buyers charged?  

I took a look at a small item I have available that would cost $2.99 via First Class USPS and switched it to a UK location for shipping.  It said the shipping would be $16 and change with a estimated $14 import charge.  That is a lot of money.

Ebay doesn't know if I'm going to ship this small item (a pin) in a padded envelope or a box.  Is there going to be a higher cost for shipping on the buyers' end if its in a small box?  Is it cheaper for them if if were in a padded envelope?  I always feel comfortable shipping stuff in boxes no matter what.  

I never really thought about this until I had a small issue with a buyer that I have already resolved, but its making me think twice about using the Global Shipping Program.  I know there is already people out there that hate it.  It does have some good sides, but to be honest I never really gave thought to what a international buyer is actually charged for shipping.  

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@jerzee908

jrzee908,

The $2.99 shipping cost is what it cost the buyer to have the item sent to Erlanger, Kentucky which is where international shipments are handled for US based sellers who are enrolled in eBay's Global Shipping Program.

When you changed the shipping destination to a UK location, the shipping charges are updated for the UK location since the package will first be shipped to Erlanger, KY and then Pitney-Bowes sends it off to the UK location. The estimated $16.00 shipping charge is what Pitney-Bowes is estimating and this covers a lot more than just postage to the UK. It covers the GSP Program fees and the BUYER pays for this stuff. The estimated import charges is also assessed to the international buyer.

Depending on the price of the item, there may or may not be any import charges assessed to the international buyer. If and when the price of the item rises above the international buyer’s “tax-free” importation limit, THEN Pitney-Bowes estimates the import fees and these change all the time as the price of the item changes.

Take for example the Vintage 1960’s Barbie Small Camera Accessory you recently sold on April 20.

I am located in Canada. I am viewing your ended listing on eBay.ca. What I see is that you sold the toy for $10.67 US Dollars (approximately $13.73 Canadian Dollars) which is below the $20.00 Canadian “tax-free” limit and therefore, there are no import charges.

However, the Shipping costs are US $17.36 (approximately $22.34 Canadian Dollars) and this gets the item shipped from your location to Erlanger, Kentucky and then to my address in Canada.

When I entered a US Postal Code of 98281 (Point, Roberts, WA), the shipping costs you charged were $2.99 to a buyer domiciled within the United States with a US shipping address.

So, with low value items being sold via eBay’s GSP, the relatively low shipping costs that you charge is to get the item shipped to Erlanger, Kentucky. What the buyer pays in GSP shipping charges is what Pitney-Bowes assesses the international buyer.

To illustrate why the GSP is a blatant rip-off to your international buyers, I will use two real examples so you can see for yourself.

Take a relatively low priced item like your Betty Boop pins. You are charging $8.77 (item price) plus $2.99 domestic shipping to a US address. Also, take your vintage chevron pin for which you are asking $42.97 plus $2.99 domestic shipping.

Now, as a Canadian buyer, what I see from eBay.ca is this:

For the Betty Boop pins, you are asking $8.77 US Dollars ($11.28 Canadian Dollars) and eBay’s GSP is assessing shipping charges of $17.18 US Dollars ($22.10 Canadian Dollars) and NO import charges (since the item price is below Canada’s $20.00 Canadian Dollar “tax-free” limit).

For the Chevron pin, you are asking $42.97 US Dollars ($55.29 Canadian Dollars) and eBay’s GSP is assessing chipping charges of US $13.78 US Dollars ($17.73 Canadian Dollars) plus import charges of US $8.13 (amount confirmed at Checkout). The estimated import charges are approximately $10.46 Canadian Dollars.

To me, why the GSP is a blatant rip-off is that the shipping charges are noticeably higher for the Betty Boop pins and I surmise they do NOT weigh a lot more than the single Chevron pin. As the seller, I surmise you could safely package each eBay item in separate envelopes or boxes and the shipping weight is not going to be materially different when USPS sends it to Erlanger, KY.

In my honest opinion, you could theoretically sell the Betty Boop pins outside of eBay’s GSP and charge your buyer shipping costs (meaning postage AND handling) more in line with what the USPS charges YOU for a shipment abroad (to select countries for which USPS DELCON is available). [USPS DELCON being USPS Delivery Confirmation].

[bpr103]

Always specify dimensions and weight with GSP. I estimate conservatively when I don't have an absolute number: add a pound or a few inches.

Ebay needs to know what's coming because they're gong to be shipping it to Europe or Asia or wherever. If you're off on your estimate, they're going to be off on their costs, and the buyer will be off on their costs.

The listing information (category) will also determine duties that need to be paid by the buyer, too, so getting things right in the listing is important.

Side note: some global buyers will contact you to see if you can ship it cheaper than eBay's GSP listed price. One out of a dozen times I've been able to ship cheaper with delivery confirmation and sig required to Spain. I'd caution against this for non-European destinations, but suffice it to say that eBay's GSP is pretty cheap compared to the retail rates we'd have to pay

Second side note: some buyers will ask you to change the category an item is listed in because duties will be lower. If another description fits, I wouldn't have a problem doing it, but I haven't had a request that I felt was legitimate yet and I don't think that potential criminal fraud charges are worth a sale.

[pjcdn2005]

Of course if you compare the gsp to sending an item with a signature, the gsp is going to be less but most items do not need to have a signature and can be sent to first class international Delcon which includes delivery confirmation to many countries.

Heavier  items often gave less expensive shipping with the gsp but lighter items are usually more expensive.  For example, your comic book and dvds could be sent to Canada with first class international  Delcon for under $10.  The gsp would cost $15.50 to Canada.  The Valentines cards that you sold for .99 would have cost $17 to Canada with the gsp.  I would send a .99 cars out in an envelope without delivery confirmation since people are generally not going to lie anourpt receiving a .99 item bit even if you used a service with delivery confirmation, it would be a long less than with gsp.

I am not saying you shouldn’t use gsp...that is totally your decision but to make a general statement that the gsp is cheap compared to retail rates isn’t totally accurate.

[marnotom!]

Sorry to be late to the party on this, buuuuuut. . .

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@godzilla_goose wrote:

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Now, as a Canadian buyer, what I see from eBay.ca is this:

For the Betty Boop pins, you are asking $8.77 US Dollars ($11.28 Canadian Dollars) and eBay’s GSP is assessing shipping charges of $17.18 US Dollars ($22.10 Canadian Dollars) and NO import charges (since the item price is below Canada’s $20.00 Canadian Dollar “tax-free” limit).

For the Chevron pin, you are asking $42.97 US Dollars ($55.29 Canadian Dollars) and eBay’s GSP is assessing chipping charges of US $13.78 US Dollars ($17.73 Canadian Dollars) plus import charges of US $8.13 (amount confirmed at Checkout). The estimated import charges are approximately $10.46 Canadian Dollars.

To me, why the GSP is a blatant rip-off is that the shipping charges are noticeably higher for the Betty Boop pins and I surmise they do NOT weigh a lot more than the single Chevron pin. As the seller, I surmise you could safely package each eBay item in separate envelopes or boxes and the shipping weight is not going to be materially different when USPS sends it to Erlanger, KY.

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What you need to remember is that "import charges" not only include GST or HST plus duty (if applicable), but various customs clearance and processing fees.  These used to be listed for items within Canada's (and other countries') tax-free threshold, but too many buyers didn't understand why these items incurred import charges and kicked up such a fuss that now those clearance fees are folded into the shipping charge.  This is likely why the shipping charge for the Betty Boop pins was higher than that for the Chevron pin.

Also, in Canada's case, the C$20 tax/duty-free limit is applicable to items sent by mail or courier, but items shipped to Canada by the GSP go as freight.

It will be interesting to see how the GSP handles items to Canada with the trade war we now have on our hands.

[nowthatsjustducky]

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@godzilla_goose wrote:

In my honest opinion, you could theoretically sell the Betty Boop pins outside of eBay’s GSP and charge your buyer shipping costs (meaning postage AND handling) more in line with what the USPS charges YOU for a shipment abroad (to select countries for which USPS DELCON is available). [USPS DELCON being USPS Delivery Confirmation].

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Interstingly, after believing that ever since the GSP was implemented, after my first ever experience with it just this past month, or the previous month (would have to check my records), it appears that this may not always be true, even for light weight items.

In my case, the item was a vintage Baby Donald Duck plushie.  I think I had the weight estimate, just to be safe, at something like 1 pound / 1 ounce.  I potential buyer asked if I could ship it to the UK through the GSP.  After a bit of back and forth with me explaining why I had an aversion to it from the getgo and him revealing that he often gets taxed less on GSP shipments, I agreed to give it a shot.  Nothing ventured, nothing gained.  Right?

Anyway, I was very surprised to see that going via GSP, he would be paying a few bucks less than had I shipped FCI.  I was also pleased to see that PB sends out regular FYI updates after they processa package and send it on.  That was rather neat.  Now granted, that was only a single point of data, so I do not know yet if that will be the case across the board or if it was just a fortunate mix of item weight and package size that made this the exception to the rule.

So anyway, I have since started altering the TOS on my listings on this account and my main one as they end in prep for account transfer or relist, that I will switch the listing to GSP at the buyer's request before commiting to buy.

Let's see if that boosts sales.

[agent006140]

you may want to ship it yourself.

 I just printed a shipping label to UK for a 2 oz item in a small 3 by 2 by 2 box inside a padded enevlope,it cost me 13.30  first class mail.

I declared the item $10 so no import duty.

I get tracking,I have done this hundred of times,dont recall having any problem

[godzilla_goose]

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@bpr103 wrote:

Always specify dimensions and weight with GSP. I estimate conservatively when I don't have an absolute number: add a pound or a few inches.

Ebay needs to know what's coming because they're gong to be shipping it to Europe or Asia or wherever. If you're off on your estimate, they're going to be off on their costs, and the buyer will be off on their costs.

The listing information (category) will also determine duties that need to be paid by the buyer, too, so getting things right in the listing is important.

Side note: some global buyers will contact you to see if you can ship it cheaper than eBay's GSP listed price. One out of a dozen times I've been able to ship cheaper with delivery confirmation and sig required to Spain. I'd caution against this for non-European destinations, but suffice it to say that eBay's GSP is pretty cheap compared to the retail rates we'd have to pay

Second side note: some buyers will ask you to change the category an item is listed in because duties will be lower. If another description fits, I wouldn't have a problem doing it, but I haven't had a request that I felt was legitimate yet and I don't think that potential criminal fraud charges are worth a sale.

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@marnotom!

marnotom!,

I am going to tell you about three of my eBay buying experiences from a buyer's perspective about eBay's Global Shipping Program and then I will try to address some of the content that you have posted.

When I purchased a relatively light weight (7 ounce gross shipping weight), low priced clothing item (US $7.99 or $8.72 CAD) from an eBay seller located in Herndon, KENTUCKY, eBay's GSP tacked on a shipping fee of $US 19.79 ($21.60 CAD) for "International Priority Shipping to Canada" and this transaction happened on July 11, 2014. This was my first experience as a buyer using eBay's Global Shipping Program with the belief that shipping would be similar to USPS Priority Mail International. If you were to read "International Priority Shipping to Canada", would you not believe that the service would be comparable to USPS Priority Mail International (to Canada)?

I was happy to receive the item but saying I was POed about the exorbitant Global Shipping Program fees is a gross understatement about my feelings about eBay's GSP. The item did NOT arrive faster to me as it was delivered to me via Canada Post (regular parcel delivery). In other words, "International Priority Shipping to Canada" is a “marketing gimmick” that gave me the (mistaken) belief that the item would be shipped faster than “regular” (USPS First Class International) mail service.

During the same month of July, 2014, I was closely watching another eBay seller's listing (in Brownsburg, INDIANA) for a very similar clothing item (from the same manufacturer/brand) (this one, New With Tags) and that the seller had listed their clothing item with a Buy It Now price of US $36.99 and listed it with eBay's GSP with Free Shipping to buyers within the United States. There were NO buyers.

When that seller (in INDIANA) listed this clothing item again, this time without eBay's GSP, and with the same Buy It Now Price of US $36.99 ($39.73 CAD) and Free Shipping to buyers within the United States, I grabbed it just before 4:00 AM (PDT) July 24, 2014 and paid for it right away. The seller charged me US $8.24 ($8.85 CAD) shipping and handling via USPS First Class Mail International / First Class Package International Service for a shipment destined to Canada.

This package cleared Canada Border Services Agency without any additional import taxes or fees assessed when it was sent through the conventional postal system and not through eBay's Global Shipping Program. I NEVER contacted the eBay seller and I NEVER asked them to falsify any customs documentation. This package arrived faster than the one sent via eBay's GSP since it did not have to be held at Erlanger, KENTUCKY for Pitney-Bowes to futz around with the package before sending it up north to Burlington, Ontario (Canada) and then (via Canada Post) from Burlington, Ontario to the west coast of Canada where I reside.

The last time that I had purchased a similar clothing item (same manufacturer/brand) from an American seller who also listed with eBay’s GSP, it was July 7, 2017. This time, the seller was located in Glen Burnie, MARYLAND and listed their NWT clothing item via auction with a starting price of US $9.99 (CAD $ 12.92) and with a Buy It Now price of US $14.99 (CAD $ 19.39) and there were three watchers. The shipping charges were US $17.75 (approximately CAD $22.95) for “International Priority Shipping to Canada”.

I exercised the Buy It Now Price of US $14.99 (CAD $ 19.39) and at that price level, there were no import charges assessed by eBay’s GSP.

When I received the package, I knew from my earlier experience with eBay’s GSP, the people at Pitney-Bowes open the packages and then reseal the package with tape and may place an eBay sticker as well. This time, there was brown tape that covered where Pitney-Bowes sliced open the envelope.

When I removed the clothing item from the envelope to check it out, I had noticed a 4 inch abrasion in the fabric. When I took out a plastic ruler to measure the opening in the envelope that Pitney-Bowes had placed tape over, that opening was the same length as the abrasion in the fabric. In other words, the BLEEPING, BLEEP, BLEEP, BLEEPING, BLEEP, BLEEP people at the GSP facility in Erlanger, Kentucky sliced open the shipping envelope causing the 4 inch abrasion in the fabric.

I did send pictures of the damage to the seller and advised her to discontinue listing via the GSP because of BLEEP like this happening. I never did receive any response from that seller and I have never done any further business with her.

I have purchased many similar items from dozens of American sellers from different regions of the United States and those that ship via the USPS have far more reasonable shipping charges than those that ship via eBay’s GSP. I have lots of records of my purchases so that I can critically analyze what’s going on.

When I review the saved searches for these items, I can see at a glance that the lower the price that the American seller lists their items, the HIGHER the GSP shipping fees that are assessed and the higher the price of these similar (if not identical) items, the LOWER the shipping fees that GSP assesses EVEN before any import charges are factored in. It is as if Pitney-Bowes is setting a “minimum value” for their transactions since it appears that the GSP shipping costs for low cost, light weight, eBay items are subsidizing the shipping costs for heavy and/or bulky items sold via eBay’s GSP. My train of thought might help me agree with your statement that “items shipped to Canada by the GSP go as freight.” [Bolding supplied by me.]

As a buyer who has first hand experience with eBay's Global Shipping Program, I can say definitively, that based on the nature of the items I have bought, eBay's Global Shipping Program is a BLATANT RIP-OFF, an engineered financial SCAM purely to line eBay's and Pitney-Bowes pockets at the expense of eBay buyers.

As a Canadian buyer, I simply can not find the perfect invective to convey my true feelings about eBay's Global Shipping Program and about the stupid people who carelessly slice open packages at the GSP/Pitney-Bowes facility in Erlanger, Kentucky.

End of rant.

P.S. As a fellow Canadian, enjoy your Canada Day long weekend, marnotom!

[marnotom!]

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@godzilla_goose wrote:

When I purchased a relatively light weight (7 ounce gross shipping weight), low priced clothing item (US $7.99 or $8.72 CAD) from an eBay seller located in Herndon, KENTUCKY, eBay's GSP tacked on a shipping fee of $US 19.79 ($21.60 CAD) for "International Priority Shipping to Canada" and this transaction happened on July 11, 2014. This was my first experience as a buyer using eBay's Global Shipping Program with the belief that shipping would be similar to USPS Priority Mail International. If you were to read "International Priority Shipping to Canada", would you not believe that the service would be comparable to USPS Priority Mail International (to Canada)?

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Well, I'd also read the terms and conditions that are linked on the listing page to find out more about the program.  In fact, that's what I did when I first encountered it, and found out--like you--that "International Priority Shipping" was a catch-all marketing term that referred to a network of freight forwarders and logistics companies orchestrated by Pitney Bowes.

When you hypothetically speculate that the service would be "comparable to USPS Priority Mail International," I'm not sure what aspects of the services you're comparing.  It's certainly comparable in terms of price.  The cheapest method one can send a 7-ounce item by USPS Priority Mail International to Canada would be in a small flat-rate box for about US$25, more expensive than what the GSP charged.  USPS also tosses Priority small flat-rate boxes into the same international letter mail streams as First Class International items, but I digress.

I also hope that you aren't falling into the trap of thinking that "Priority" means "fast".  It just means "faster than something else".  In the case of both the GSP and USPS, I have no idea what this "something else" is, as there's no slower international parcel service provided by either the GSP or USPS as a comparison to Priority service.  (First Class International Package Service is, in fact, an oversize international letter mail service, just as is Canada Post's Small Packet service.) 

Rather than quote your other two experiences, I'll see if I can just try to make my observations here.  The big impediment in Pitney Bowes' ability to handle GSP shipments quickly at the Global Shipping Center in Kentucky is the fact that most sellers don't provide enough information on their items in the "Item Specifics" section of the listing, information that would help the minions working at the Center to get the customs manifest filled out efficiently.  My understanding is that the reason why so many GSP shipments have to be opened up at the Center is because Pitney Bowes requires the item's country of origin or manufacture for the customs manifest, and if the seller hasn't provided this information in the "Item Specifics" section of the listing, they have to check the item itself before giving up and noting it as "other" or "unknown" and calculating duty on that.

As suggested elsewhere, the shipping price Pitney Bowes calculates for GSP items has to be based on a category average if the seller hasn't provided information on it, which is likely why your lightweight items have had shipping prices that are a fair bit out of whack, although more comparable to Priority International than First Class International.  As I think you're trying to suggest, GSP items don't incur much of a shipping charge travelling from Kentucky to Mississauga.  Most of the shipping charge is likely what it costs to get the item from Mississauga to its destination, and even that's an estimate as GSP shipping charges don't seem to vary whether the item is going to Toronto or to Iqaluit.  

Like you, I've purchased three items that were forwarded (I use that term because the GSP is really just a glorified forwarding service) through the program.  All were cell phones.  Because there isn't a lot of variation in the shipping weight of a packaged cell phone, my shipping charges were very reasonable compared to ones offered by other sellers, and because I live in British Columbia, the GSP only charged me GST on the phones, whereas other carriers would likely have hit me with PST charges as well despite the fact that PST doesn't need to be charged on them due to a quirk in BC's tax laws.  The phones didn't arrive super-speedily, but they didn't arrive super-slowly, either, and in two instances they actually arrived faster than the phone cases I'd ordered the same day from sellers shipping directly by First Class International.  I suspect that cell phones don't need as much "TLC" from the Global Shipping Center as they're pretty straightforward to declare and do data entry for.  I can't recall if all three had to be "resealed by the Global Shipping Program".  I know at least one did.

While the GSP does have its shortcomings, when it comes to the item's handling and shipping pricing, I'd say many issues could be avoided or mitigated if sellers prepared their listings and items properly for the Global Shipping Center.  The problem is that sellers aren't subject to a set of terms and conditions the way buyers are, and in a way, why should they be?  They're not the ones paying into the program.  We are.  Unfortunately.  I think more sellers would give the program a harder look if it weren't so easy for them to ship the item to Kentucky like they would a domestic sale and just fergeddaboutit.

Having said that, buyers are certainly in a position to vote with their wallets and either avoid GSP listings where it doesn't make sense to use the program (just as they'd probably avoid listings for $5 items shipped by $40 Express), or use an alternative address located in the United States to have their item shipped to.  The buyers can then figure out the best way themselves to get the item from that alternative address into their hot little hands.  The reason I haven't purchased any items forwarded by the GSP other than cell phones is because it hasn't made sense for me to use that option.

Happy Canada Day back atcha!