ebay Global Shipping Program

[453path]

Hi, I'm writing this article from the UK. Can any sellers who ship internationally using the ebay Global Shipping Program (GSP), please tell me the advantages to you, 'the seller' of using this system?

I ask this because I've been purchasing from the U.S for a long time, but it seems more & more sellers are now shipping 'only' via ebay's GSP.

One of the things I see on such listings from sellers who use this system to ship items overseas is; all customs fees & charges are covered by the program! I just want to say, as a buyer in Britain purchasing items from America 'ALL'  items we purchase from overseas go through customs.

HMRC (Revenue & Customs) subject every parcel no matter how big or small & regardless of the value, to a customs inspection. They then decide whether or not to apply a customs fee to that parcel. Having regularly purchased from ebay USA the past couple of years (also Canada & Australia too), I have found customs only apply a fee to about 1 in 3 or 1 in 4  parcels.

Obviously if I've made a large purchase they often do get hit with a customs fee (but not in every case). Just to let you know; I've never had a seller declare an item as a 'gift'. Every customs document filled out by the sellers has always stated it is a purchase from ebay, plus a description of the items & the value.

Using an n scale freight car as an example (I model U.S railroading in n-scale); with ebay's Global Shipping Program, the average cost 'per' item is around $21 to ship to Britain. That charge is applied to 'EVERY' single item when shipping via ebay's GSP. However when I purchase from a seller who ships via USPS (or a courier such as UPS), the  seller can usually send 4 or 5 n-scale freight cars for about $21.

When receiving such a parcel here in the UK, HMRC sometimes charge me an import 'tax' fee, but many times they do 'NOT' send me such a charge prior to releasing my parcel here in Britain.

The way I see it; ebay is making a huge amount of money/profits from this scheme, but maybe I'm mistaken & someone could clarify that for me? I say that because I believe ebay is not only marking up the cost of this shipping option, but do they really pay a UK import tax (supposedly on our behalf) for every single item I purchase from America?

I mention America because, although most of my purchases are from sellers in the States, I do also buy from sellers in Canada, Australia & Europe. Nobody in those countries use the ebay Global Shipping Program. I don't say it doesn't exist in other countries; I simply haven't come across a seller elsewhere, who ships via ebay GSP.

Of course I know ebay now charges a commission to sellers for shipping (what we call postage & packaging in Britain; P&P). I believe that is a complete rip-off to sellers from ebay, after all, from what I've seen of shipping costs via USPS (& Royal Mail here in the UK), most sellers probably don't make any money on shipping costs after other factors such as materials & time are also factored in to the equation!

The only winner (ESPECIALLY with ebay Global Shipping Program) is ebay itself!

Just to let you sellers know; I stopped purchasing from ALL sellers who will 'ONLY' ship using the ebay GSP, soon after that system was introduced, because the cost is so prohibitive as an overseas buyer, (although it is okay if I purchase ONLY 1 item from a seller, but I don't do that very often). Now I only buy from sellers who use USPS or a courier such as FedEx etc. Unfortunately that list seems to grow smaller every few months, as more sellers seem to take up ebay's GSP.

So, I would love to know what the advantages/benefits are to you sellers in America who only use ebay GSP. I believe that even when using the ebay GSP system, you as a seller in America, still have to complete customs documents, & arrange collection of the parcel or dropping it off at some depot etc? Once again, I hope you can clarify this for me!

I look forward to your replies; especially as I would love to continue buying from ebay sellers in the States! 

[aristotles_id]

Just to let you know under the ebay GSP scheme, the buyer (& seller) pays  the cost for every INDIVIDUAL item shipped! I received the three freight cars in ONE package. It was less than a third the size of a shoe box & weighed well under half a pound! It was also sent via USPS, although I had paid for the shipping via the ebay GSP, which I've since learnt is via Pitney Bowes!

Anyway, I was charged almost $70 for that parcel to be sent to the UK. If it had been sent directly with USPS it would have only cost $21-$24.

If less than 180 days have passed you can make a claim through Paypal for the refund of the GSP fees, as from what you say, the seller shipped directly to you, without using the GSP. GSP does not use USPS for any purpose. The seller did not get that inflated shipping cost or any import fees you paid. You are entitled to a refund for this unused service. You will see the origial payment as two charges, and it is the one to PB that you need to contest. Once thay see that that item never entered the system, you should get a refund. 

Using the US shipping calculator will not help you with your basic misapprehension of the US fees on shipping.  Each calculation will be treated as if that is the sole shipping methos used.  BUT many sellers have a choice of shipping methos. and in that case the fee is based on the cheaperst domestic method listed. I reiterate that GSP shipping costs are not subject the shipping fee commission. The sellers shipping to KY. is subject to this commission.

This differs from the UK ebay practice where the fee is based on the actual shipping paid, domestic or international. US sellers get a different and better deal with this.

[missjen831]

It does not sound like the item was shipped directly to OP! How would the seller have gotten OP's address? They were charged over $70. Had the seller shipped directly, they are saying it would have been $21-$24.

[sayanora]

OP,

UK customs duty has always been stiff,back then my UK buyers will claim to be a charitable organisation to get such fee waived.

If you see an item you would like to purchase on Ebay USA and do not like your seller to use GSP, offer to send them non credit card payment and ask them to use another shipper.

Of course youhave to trust the seller .

A seller can list an item for local pickup and accept either cash or Paypal,just ask your seller to make a special listing for you so you can pay with cash,meaning cash or intl cashier check or money order,or wiretransfer.

You will get no Ebay or Paypal or cc protection,but if I were the seller and I see repeated business, I would not screw up my chance of doing business with you.

(I do not sell model freight car., I have no clue where to get some for resale)

[aristotles_id]

For example, antiques going t o Italy has a high customs fee,last time I heard was 20%,and we all know most antiques on Ebay is not antique so woe to the ITALIAN buyer if the seller described his item as antique!

It would make no difference, the standard rate of European import VAT is around 20% for all items except books, some food, (not usually shippable by post anyway) and a few isolated exceptions.

There is a cheaper rate for importing antiques, but it is only available to items imported as freight and the degree of antiquity must be backed by a document from a member of a recognised antique dealer association (In Britain, examples are LAPADA and BADA)

Just describing a postal item as antique is meaningless in tax terms.

[aristotles_id]

It does not sound like the item was shipped directly to OP! How would the seller have gotten OP's address? They were charged over $70. Had the seller shipped directly, they are saying it would have been $21-$24.

If it arrived in one box by USPS it was sent direct. USPS rules out GSP involvement entirely. The buyer did pay the GSP shipping fee but this was never used if my theory is correct. Sellers do have the ultimate destination address, it's just no so obvious. I have not sold on ebay.com for years so I do not know where exactly to refer you, but there have been many cases of sellers shipping GSP items direct by mistake so it is certainly possible.

[sayanora]

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@aristotles_id wrote:

Just to let you know under the ebay GSP scheme, the buyer (& seller) pays  the cost for every INDIVIDUAL item shipped! I received the three freight cars in ONE package. It was less than a third the size of a shoe box & weighed well under half a pound! It was also sent via USPS, although I had paid for the shipping via the ebay GSP, which I've since learnt is via Pitney Bowes!

Anyway, I was charged almost $70 for that parcel to be sent to the UK. If it had been sent directly with USPS it would have only cost $21-$24.

If less than 180 days have passed you can make a claim through Paypal for the refund of the GSP fees, as from what you say, the seller shipped directly to you, without using the GSP. GSP does not use USPS for any purpose. The seller did not get that inflated shipping cost or any import fees you paid. You are entitled to a refund for this unused service. You will see the origial payment as two charges, and it is the one to PB that you need to contest. Once thay see that that item never entered the system, you should get a refund. 

Using the US shipping calculator will not help you with your basic misapprehension of the US fees on shipping.  Each calculation will be treated as if that is the sole shipping methos used.  BUT many sellers have a choice of shipping methos. and in that case the fee is based on the cheaperst domestic method listed. I reiterate that GSP shipping costs are not subject the shipping fee commission. The sellers shipping to KY. is subject to this commission.

This differs from the UK ebay practice where the fee is based on the actual shipping paid, domestic or international. US sellers get a different and better deal with this.

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you misread her post,she said if seller has used USPS instead of GSP,not seller charging her GSP and use USPS.

[sayanora]

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@aristotles_id wrote:

For example, antiques going t o Italy has a high customs fee,last time I heard was 20%,and we all know most antiques on Ebay is not antique so woe to the ITALIAN buyer if the seller described his item as antique!

It would make no difference, the standard rate of European import VAT is around 20% for all items except books, some food, (not usually shippable by post anyway) and a few isolated exceptions.

There is a cheaper rate for importing antiques, but it is only available to items imported as freight and the degree of antiquity must be backed by a document from a member of a recognised antique dealer association (In Britain, examples are LAPADA and BADA)

Just describing a postal item as antique is meaningless in tax terms.

---

You have a good point there, my quote on Italian customs duty on antiques 20% was before Italy joined the European Union.

[sayanora]

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@aristotles_id wrote:

It does not sound like the item was shipped directly to OP! How would the seller have gotten OP's address? They were charged over $70. Had the seller shipped directly, they are saying it would have been $21-$24.

If it arrived in one box by USPS it was sent direct. USPS rules out GSP involvement entirely. The buyer did pay the GSP shipping fee but this was never used if my theory is correct. Sellers do have the ultimate destination address, it's just no so obvious. I have not sold on ebay.com for years so I do not know where exactly to refer you, but there have been many cases of sellers shipping GSP items direct by mistake so it is certainly possible.

---

thats what OP said-

Anyway, I was charged almost $70 for that parcel to be sent to the UK. IF  it had been sent directly with USPS it would have only cost $21-$24.

[sayanora]

OP-

Many overseas buyers use a mail service in USA to receive their packages and then bundle them up and ship to UK,see if you can find one suitable for y ou.

Chinese,Japanese,Carribean,Eastern European buyers do

Also-

This is common when you attend trade shows, the vendors often ask if you prefer to use your own shipper,many attendees have accounts with shipping company and prefer to use their own shipper.

Say you have an account with DHL and enjoy a discount, you can ask the seller to use your account with DHL or whatever to ship to you, the seller gets her protection and you skip GSP

[missjen831]

On a GSP sale, the only way the seller can ship direct to the buyer is if the buyer messages them with their address. There is other way. The buyers address is BLANK. When the buyer pays, the seller is then given the address to the GSP and the GSP DOES not always send each item individually. It is the SELLER that cannot combine shipping. The seller must send each item to the GSP separately. GSP often repacks the item.

[aristotles_id]

you misread her post, she said if seller has used USPS instead of GSP,not seller charging her GSP and use USPS.

My reading of it was that the seller sent direct, possibly paying extra shipping out of pocket, while the buyer paid the GSP shipping cost, something the seller would have no knowledge of. Sellers bypassing the GSP on GSP items is really not uncommon.

The usual complaint is of being taxed again on arrival.

[aristotles_id]

You have a good point there, my quote on Italian customs duty on antiques 20% was before Italy joined the European Union.

Since 1958, then.. Must be the USPS International Mail Manual to be that out od date.,. 🙂

[aristotles_id]

On a GSP sale, the only way the seller can ship direct to the buyer is if the buyer messages them with their address.

I have my doubts about that, but it may depend on your ebay e-mail preferences how much information you get. I am thinking of the 'You sold your item' e-mails which certainly used to include the buyer's address.

However, if the item arrived by USPS thje GSP was not involved. Paid for but not used. Only the OP can really clarifyt this and they are probably enjoying their Boxing Day Christmas pudding an a few drinks about now.

[453path]

Hello & thanks for everone's replies & input!

First of all, in reply to missjen316, the shipping fee wasn't over $70, it was in fact slightly under $66 as each item (3 items) was listed a few cents below $22. Each were $21.97

Regarding the shipping calculator, I can only go by what I saw when I used ebay USA fee's calculator. I input the sale price. It then asks for one of three shipping options. No shipping fee; domestic shipping & finally international shipping. It doesn't ask for sellers address/location or buyers address/location, so I can only go by what it showed me in the results, for the fees payable to ebay (USA) by the seller. 

Unfortunately I can't try to claim now because it was longer than 180 days ago! It was around the time my mother passed away; I had other things on my mind at that time!

Many of you have made relevant comments; aristoles_id is quite correct when saying many low cost (not to mention, often quite small & easy to send) items are far easier & cheaper to send direct using 1st: USPS, 2nd choice: a courier. 

Mention was made of the fact there is NO VAT or import duty on books. That is also correct, but it actually encompases ALL printed matter even magazines! Yet I've seen sellers on here listing books & magazines & shipping via ebay GSP, which PROUDLY states ALL taxes are paid for with this scheme! BUT we don't pay import taxes or VAT on ALL printed matter here in the UK! 

In reply to sayanora, I was in contact with HMRC earlier this year regarding an excessive import tax I had to pay for a box of items from Australia. I calculated what I would need to pay, yet my bill from the customs office was more than double! It turned out to be an error on the part of the seller in Australia. He had listed the full Australian Retail price including (Australian GST) on the customs document. As I had purchased the items secondhand on ebay, I calculated the tax owed on the amount (in British Pounds Sterling) that I'd paid the seller. 

HMRC wouldn't do anything about it; I paid the tax & had to sort it out with the seller in Oz. Fortunately he was very understanding & reasonable & honest, & he did sort it for me. Anyway the point of this is; customs here in Britain informed me they only charge tax (& they don't always apply a tax fee) on the value of the goods as listed on the customs invoice from the sleer/shipper/freight forwarder etc. 

This leads me to something sayanora said; 

Ebay gets a very small referral fee for each item. Think about 2 cents in the dollar. They do make more overall if they get more sales, of course.

                                                                                                                &

You are mistaken. PB makes a service charge of about $5 per item. All import taxes collected are remitted to the UK Customs. As a bonus, UK Customs collects and keeps the import taxes on items sent to most of Europe.

first of all, since when does the UK collect & keep taxes for amost items sent to European countries? Items to be sent to a European country from someone in the States doesn't go through UK customs! I don't know how you can make that statement??? Do you honestly think & believe Germany or France etc are happy & content to let Britain collect & keep THEIR taxes???

The other point is; you said ebay keeps 2 cents per dollar & PB makes $5 per item??? Really? And you said the rest of the amount goes to UK customs??? REALLY?????

I have no idea where you came up with that one? HMRC informed me quite explicitly when I contacted them; whenever they make a import/tax charge on a parcel, it is ALWAYS for the amount as stated on the customs declaration by the seller/shipper/courier.

I've had a few items sent via UPS & DHL; they are more expensive than USPS (& I am ALWAYS charged an import tax when they are used); but they are still a lot cheaper than the ebay GSP. And even when sent via another courier, the tax imposed here in the UK is not as much as the cost of shipping via ebay GSP (for three or more items), therefore I seriously doubt whether the majority of the costs to the Global Shipping Program is going to line HMC's pockets???

[missjen831]

OP did not say it was shipped via USPS. Again she said, had the seller shipped it directly to her via USPS. And the emails regarding the sale all provide a blank address.