Questions about international shipping: USPS vs UPS (how it affects the recipient)

[bangordiscount]

Hello,

I fulfill a lot of international orders. Most are smaller items that weight less than 4lbs and I almost exclusively ship via USPS First Class International (FCI) or PirateShip's hybrid of USPS ----> Asendia (simple export rate) unless the buyer asks and pays for an alternative service.

Recently, I sold a 7lb  item to the UK valued at $250. The only options I had listed on the product listing were through USPS and because of the weight those options were USPS Priority Mail International (PMI) and Priority EXPRESS Mail International (PMEI).

The buyer chose the cheaper of the options and paid $89.20 for that service (PMI).

I checked USPS rates on my PirateShip account and they were the same that were quoted through eBay (Pitney Bowes) but PirateShip offered a 3rd service (through UPS) that was cheaper (UPS Worldwide Expedited @ $72.89)

Essentially I would personally be saving money and providing the buyer a faster service by using the UPS method. PirateShip discounted the UPS rate from retail of $336.59 to my volume rate of $72.89

UPS is guaranteed by 4/19 where USPS PMI is expected anywhere between 4/19 and 5/9 (and as someone who ships internationally regularly through USPS their estimates can be wildly inaccurate, especially with the pandemic).

MY QUESTION IS... Would this have any negative affect on the buyer? I know that he's in the UK and will be expected to pay VAT/Customs/Import fees with USPS, I'm assuming it's the same with UPS? Would they be the same rates since they are enforced by the government there? My experience shipping internationally with UPS is pretty limited, basically just to Canada and Mexcio.

I double checked the order details and the buyer did NOT prepay his VAT costs like some countries are required to do.

Thanks in advance for any input you have to share

[argy_eyes]

@bangordiscount 

Thanks BGD for bringing up UPS. I've looked at it from time to time but always dismissed it because of the non-competitive charge (in your example, $336.59 vs. $89.20 for USPS). How do you get the "volume rate?"

Mike

[bangordiscount]

I created a PirateShip (if you don't have one, google "Pirate Ship Shipping") account a year or so ago at the recommendation of people on these forums. I then asked to be part of their "Simple Export Rate" program (you have to ask via chat) which gave discounted USPS FCI rates (at the time) but now gives discounted Asendia (hybrid shipping model) rates.

When they partnered with UPS to offer discounted UPS rates, the discount also applied to UPS international rates. For whatever reason, I'm finding UPS rates to be as competitive if not cheaper then most of the USPS rates on larger/heavier international items (I never would have thought this the case).

[pjcdn2005]

I’m not certain how it works in the UK but if you sent a package to Canada , a courier usually costs the buyer more in brokerage fees.  For example, a package sent via USPS a buyer would pay a brokerage  fee of $10 to Canada Post regardless of the item’s value.   Quite a few packages go through Canada Post without being accessed any duty or taxes  but a package of that value would probably be assessed. Packages sent through a courier are always assessed.

With UPS standard service,  UPS charges a percentage of the value so according to the ups site, a $250 package would be charged $57 for brokerage +a  $6 ICOD fee.   But the fees are definitely less when an express service is used and expedited worldwide seems to qualify as an express service. In that case, I think the total charge for the buyer here would be about $10.  

If your buyer thinks you are using usps, you shouldn’t use UPS unless they agree to it. Even if there aren’t extra charges, there may be a reason they don’t want you to use a courier.

[martin2001]

Are you sure they didn't pay VAT taxes? Ebay now automatically charges it. I sell relatively a lot to Europe and there has not been a single case where ebay would fail to charge the buyer VAT tax. But if they did not pay it, they would pay at the time of delivery. UK Mail used to charge an 8 GBP administrative charge for processing VAT tax. UPS would probably charge you additional brokerage fees and who knows, I often read how Fedex, UPS come up with additional surcharges for supposedly wrong dimensions etc etc. I would stick with pirate, they are great if one needs customer help.

[bangordiscount]

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@martin2001 wrote:

Are you sure they didn't pay VAT taxes? Ebay now automatically charges it. I sell relatively a lot to Europe and there has not been a single case where ebay would fail to charge the buyer VAT tax. But if they did not pay it, they would pay at the time of delivery. UK Mail used to charge an 8 GBP administrative charge for processing VAT tax. UPS would probably charge you additional brokerage fees and who knows, I often read how Fedex, UPS come up with additional surcharges for supposedly wrong dimensions etc etc. I would stick with pirate, they are great if one needs customer help.

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Yes, I'm sure. See attached screenshots; one shows a recent sale to Norway (bottom) where eBay collected VAT (there is a line item for it on the order details) and the other screenshot is of the mentioned sale to the UK (top). Notice how in the payment details there was no tax or VAT collected, just the item cost and shipping paid by the buyer.

If I ship UPS, it would be with PirateShip as the middle man. I've read problems about FedEx (via eBay) retroactively charging accounts for additional fees for wrong dimensions/weights (and some instances with buyer stating they were the right weights and dimensions) but I've never been retroactively charged for any label I've purchased via PirateShip regardless if it was UPS, USPS or Asendia (Simple Export Rate).

Below is what my label would cost:

In my opinion, UPS is a MUCH better service. I've sent thousands of items some version of USPS to international customers over the last decade, and to most countries, it is very unreliable in regards to how long it will take for delivery. My experience, although limited, with UPS/FedEx/DHL is that it is delivered when it's quoted to be delivered.

The point of this thread was to see if using a private courier like UPS would have any direct affect on the buyer, in regards to their cost (fees/Import Taxes/etc.).

I see absolutely no scenario where I would be paying more than what I'm quoted by PirateShip (assuming my weights and dimensions are correct---and they would be).

[1tuna]

I used to ship every day outside the country till october

I have shipped many packages to the UK.......almost all were 1st class

USPS priority mail is not delivered by the Royal mail

it gets delivered by Parcel Force

if you want royal mail delivery I used to use USPS registered mail for my buddy

my buddy told me it goes thru customs  easier with royal mail VS Parcel Force