The Global Shipping Program scam

I'm looking at an item with a Buy It Now price of US$149.99. Shipping is $25.27, and when I select Buy It Now the so-called "import charge" appears, adding $12.28 to the bill. However, the seller has offered a discount. Now the item is $124.99, again with shipping of $25.27. But on reviewing the offer the "import charge" suddenly becomes $24.28, almost twice as much. I've encountered this scam several times and no one has ever satisfactorily explained how the "import charge" is calculated and why it mysteriously rises when the price of the item is reduced! Needless to say, I won't take advantage of the seller's generous discount. Just another example of GSP working in the interest only of eBay and Pitney-Bowes. Neither seller nor buyer benefits.

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The Global Shipping Program scam

marnotom!
Community Member
https://community.ebay.ca/t5/Buyer-Central/More-Global-Shipping-Program-nonsense/td-p/463828

Here’s a reworked version of what I suggested in the above thread 👆

“Import charges” are considered estimates on the listing page. They’re based on the postal code the buyer enters into the listing’s “shipping” section.

“Import charges” are also considered estimates on anything related to offers. They’re based on HST, and will be higher than charges to buyers in provinces where GST is charged.

“Import charges” are finalized at checkout when the buyer’s shipping address is confirmed.

Yes, this all based on other users’ experiences with the offer process and GST, but I have no reason to doubt their anecdotal evidence. Your mileage may vary.
Message 2 of 20
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The Global Shipping Program scam

BIN $149.99 (~$180CDN).

Shipping from US to ?- $25.27

Import charges (duty for item over $140Cdn +Canadian sales taxes ) $12.28

  • Indicates there is no duty but sales taxes of ~$9 if GST is 5%. All provinces collect GST.
  • Sales tax might be lower, but GSP has a service charge of ~$5
  • Import charges do not appear until the buyer clicks on the listing, and eBay sees that the customer is somewhere in Canada.

Should we assume that you made a Best Offer and the selling price changed to $124.99?

BO Price $124.99 (~$150Cdn)

Shipping unchanged at $25.27

Import fees $24.28

  • Does your province charge 13% HST? There's $19.50 PLUS that $5 service charge.

A couple of notes.

Any carrier charges a service fee. For Canada Post it is $9.95, UPS ~$25.

 

The GSP is a Seller Protection program. It saves the seller from false Not Delivered dispute and from the "held at customs" scam.  Not As Described remains in effect, although "damage in transit" is covered by the GSP not the seller.

 

GSP offers nothing for the buyer, with the minor exception of encouraging provincial and xenophobic sellers in the US and UK to ship overseas with some confidence which otherwise they would not consider.

Message 3 of 20
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The Global Shipping Program scam

None of this explains why "import charges" double, based on the same postal code,  when the price of the item is reduced.

Message 4 of 20
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The Global Shipping Program scam

What is the service fee you refer to? I send everything by Canada Post and I've yet to see $9.95 added to any of the labels I print out. I agree with your final point that buyers get no benefit from GSP. Timid sellers in the US and the UK should realise that GSP discourages sales they would otherwise make by sending directly by USPS or Royal Mail with tracking and insurance.

Message 5 of 20
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The Global Shipping Program scam


@aramatic wrote:

None of this explains why "import charges" double, based on the same postal code,  when the price of the item is reduced.


Sorry if I wasn't clear in my explanation.  The offer process doesn't take your postal code into consideration when re-estimating the import charges.  It only takes into consideration that you're in Canada and calculates an import charge based on HST.  If you're in a "GST province" that will mean that your import charge estimate effectively doubles.

 

According to others who have gone through to checkout, the import charges sort themselves out once your address is confirmed.

Message 6 of 20
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The Global Shipping Program scam

I send everything by Canada Post and I've yet to see $9.95 added to any of the labels I print out

Of course not.

The service charge is for what private couriers like UPS call "customs brokerage".

It is paid by the importer/buyer when a shipment passes through customs.

If you are the seller/exporter you don't see this.

 

Your US buyers would rarely see it either (and by extension most US sellers would be unaware of it) because S residents have an $800 duty free allowance.

Canadians have a $140 duty free allowance for US and Mexican imports but only a $20 duty free allowance for the rest of the world.

And then Canadians also pay GST, a federal sales tax which does not exist in the USA. Provincial taxes including HST are collected at the same time. The  tax-free allowance for US/Mexica is $40 and for the rest of the world is, again, $20.

US residents pay their state sales taxes when they buy on eBay, but the seller is not really involved with that. We do see it on invoices as a pass-through.

Message 7 of 20
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The Global Shipping Program scam

@aramatic 

The $9.95 referred to is charged by Canada Post when they collect duty/tax on a package that was assessed by Canada customs when it comes into Canada from another country.  

As far as the extra import charge when an offer is made and the gsp is being used...I believe that it is a glitch that shows up before you accept an offer but when you go to check out the import charges go back to the correct amount.  I haven't seen it myself so can't confirm that is definitely what  will happen but someone else did post in the past about it and that's what happened when they completed the sale. 

Message 8 of 20
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The Global Shipping Program scam

from today's weekly chat...

I think that last time this was brought up the poster said that during checkout the import fees went back to the correct price but even if that's the case, some buyers are not going to accept the offer since it looks like there won't be any savings.  Is eBay aware if the problem and if so, are they working on it?  Obviously if import fees are $15 for a $100 item they shouldn't be $25 if item price is now $90.

Hi @pjcdn2005 - this is a super interesting question! I remember it coming up in the past and know that once you get to the checkout page things calculate properly. It's just geting to that screen that I'm unclear on. 

 

I'll check with the checkout/offer folks and see if they have something definitive for us!

Message 9 of 20
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The Global Shipping Program scam

It's quite astonishing that no one has a clear answer to a basic point like this. Perhaps I'm just old-fashioned in wanting to know the actual price before I commit to buying something. I'm not going to trust to luck that the correct (and usually unnecessary) "import charge" will sort itself out once I click Buy Now. Is eBay unable to manage something so seemingly simple, or do they think we won't notice or bother?

Message 10 of 20
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The Global Shipping Program scam

"Canadians have a $140 duty free allowance for US and Mexican imports but only a $20 duty free allowance for the rest of the world." So the item I'm looking at for $149.99 would supposedly incur a charge of $12.28, but when the seller discounts it to $124.99 and it should therefore be duty free the import charge rises to $24.28! Perhaps others have both more money and more faith in the system than I have. To me it looks like a matter of plucking any old figures out of the air in order to increase the seller fee.

Message 11 of 20
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The Global Shipping Program scam


@aramatic wrote:

"Canadians have a $140 duty free allowance for US and Mexican imports but only a $20 duty free allowance for the rest of the world." So the item I'm looking at for $149.99 would supposedly incur a charge of $12.28, but when the seller discounts it to $124.99 and it should therefore be duty free the import charge rises to $24.28! Perhaps others have both more money and more faith in the system than I have. To me it looks like a matter of plucking any old figures out of the air in order to increase the seller fee.


Sellers' fees on an international shipment sold on the .com site are based on the selling price of the item plus the seller's domestic shipping price.  For items forwarded through the GSP, the GSP's fees to the buyer don't enter the equation at all.

 

Back to your item, I have no idea what it is but by the looks of things it isn't subject to duty at all, but as an aside that limit is CDN$140, not US$140.  It's still subject to taxes at the price you're looking at, however, as the tax threshold is CDN$40.  So things look like this:

 

The Listing As You See It:

Selling price: US$150

Import charges: US$12.28

The import charges break down to US$7.50 in GST and US$4.78 for Pitney Bowes to play with.

 

The Offer As You See It:

Offer price: US$125

Import charges: US$24.28

The import charges break down to US$18.75 in HST (15% for those lucky folks in Atlantic Canada) leaving US$5.53 for Pitney Bowes to play with.

 

Nothing's being plucked out of the air.  While this could be a glitch, it may also be an insurance against people changing their shipping address from Alberta to Newfoundland in Checkout in an attempt to get a better deal on the import charges and then be sorely disappointed to find it doesn't work that way, possibly leading to the buyer bailing before entering their payment info. The better way to do this, of course, would be for eBay to recode Checkout so that the buyer provides their shipping address in the offer process and if the offer is accepted, that address is automatically used at Checkout.

Message 12 of 20
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The Global Shipping Program scam

Thanks for the breakdown of charges. You're right, of course, about the $124.99, which is US dollars and therefore over the CAN$140 limit. Only two things more. First, I resent anything going to Pitney-Bowes... $4 here, $5 there, for doing nothing but delaying the delivery of an item. Secondly, and the bottom line, the Godawful Shipping Program is obnoxiously inflationary in every sense. It's just as easy, it's cheaper, and it's quicker to send directly by USPS. I've had lots of things valued $10-$400 sent directly without paying a penny in import charges. I know some people say that's wrong and I'm just lucky. Well, I've been lucky for 17 years, and I'm sure I'm not the only one. If GSP ever comes to Canada I'll never use it. I know how many US purchases I haven't made because of it.

Message 13 of 20
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The Global Shipping Program scam

You're still ranting about this?!?  Just get over it...

For a US seller, it's easier to go through the GSP for international sales than shipping directly to the buyer.  No customs papers to bother with...

 

For many items, like the bulky or heavy ones, it's actually cheaper to use the GSP.  Because even though you think that Pitney Bowes isn't doing anything to deserve their cut, they do have deals to ship in bulk across borders.


And if the GSP ever comes to Canada, it would only be available to you as a seller, not a buyer!

Message 14 of 20
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The Global Shipping Program scam


@aramatic wrote:

Thanks for the breakdown of charges. You're right, of course, about the $124.99, which is US dollars and therefore over the CAN$140 limit. Only two things more. First, I resent anything going to Pitney-Bowes... $4 here, $5 there, for doing nothing but delaying the delivery of an item. Secondly, and the bottom line, the Godawful Shipping Program is obnoxiously inflationary in every sense. It's just as easy, it's cheaper, and it's quicker to send directly by USPS. I've had lots of things valued $10-$400 sent directly without paying a penny in import charges. I know some people say that's wrong and I'm just lucky. Well, I've been lucky for 17 years, and I'm sure I'm not the only one. If GSP ever comes to Canada I'll never use it. I know how many US purchases I haven't made because of it.


Unquestionably the GSP isn't a good fit for a lot of sales to Canada.  Our geographical proximity to the US, our longstanding trade relationship with the US, and our countries' reasonably good mail systems and customs bureaux mean that direct shipping from the US to Canada doesn't have the same sort of potential problems associated with it as shipping to many of the other 100 or so countries served by the GSP.

 

Having said that, direct shipping from the US by mail is becoming less commonplace as the costs associated with it go up and the service is undermined.  If you've purchased from e-commerce sites other than eBay, there's a good chance that your item has been handled and forwarded in a manner very similar to that of the GSP.

 

If your direct-mailed shipments from the US were stopped, assessed and charged taxes (and duty, if applicable) owing, I'm thinking you might regard the GSP with a bit more tolerance and figure out how to use it to your best advantage.  Some considerations:

 

  • the GSP's charges of typically US$4-6 dollars for processing items through customs is a better deal than Canada Post's charge of C$9.95 for collecting and remitting taxes and duty owed to CBSA.  It's also a heck of a lot better than any courier out there
  • the GSP's import charges include calculations for GST and HST, but not PST.  Items sent by any other carrier will be assessed and charged (or advanced) PST for British Columbia-bound shipments
  • items forwarded through the GSP don't go through backlogged International Mail Sorting centers

No question the program has a lot of quirks and issues, but if you find sellers who know what they're doing, it usually works out quite well.  I've had no issues with the four purchases I've made that were forwarded through the GSP.  I haven't made more than that because for the types of items I purchase, the GSP doesn't make a lot of sense.  But I don't get bent out of shape about it.

 

Finally, the GSP has (obviously) not replaced direct mail or courier shipments from the United States, but I strongly suspect that if the program were to suddenly shut down, the majority of the sellers using the program would simply not offer international shipping.  We'd be back to the days where we had to have our purchases sent to an address in the US to be picked up at some point or forwarded to our address, which is pretty much what the GSP is doing, except with the GSP we have more in the way of buyer protections at our disposal.

 

Actually, forwarding items under your own steam is still an option, too.  The GSP hasn't taken that away.

Message 15 of 20
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The Global Shipping Program scam

First of all, I'm not "ranting". I'm making a point which obviously you consider trivial. Or, as it turns out, you don't fully understand. When you say "And if the GSP ever comes to Canada, it would only be available to you as a seller, not a buyer!" you reveal your imperfect grasp of what I wrote, viz. that I wouldn't use GSP as a seller because I know how many US purchases I haven't made because of it. Got it?

Message 16 of 20
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The Global Shipping Program scam

We can see in your profile that you first ranted about the GSP in 2015...  6 years later, you still feel the need to talk against it.  You could have simply decided never to buy again with the GSP...

You never mentionned acting as a seller in this discussion, so there is no way we can "grasp" this from your comments.  Most sellers that use the GSP are perfectly happy with it, contrary to the buyers, so it's really not the same thing at all.

Message 17 of 20
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The Global Shipping Program scam

"For a US seller, it's easier to go through the GSP for international sales than shipping directly to the buyer.  No customs papers to bother with..."

 

Shipping directly to the buyer does not require a trip to the post office other than to drop the completed package off, having dealt with the customs information in printing out the postage online via eBay Labels or an online postal service. You should try it.

"Most sellers that use the GSP are perfectly happy with it, contrary to the buyers...."

 

Thank you for unwittingly reiterating my point.

Message 18 of 20
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The Global Shipping Program scam

I'm not a seller, (well, at least since 2004), so this situation simply doesn't concern me.  You are now complaining about the program both ways.  Maybe you should just get over it once for all, if either part (buyer/seller) repulses you?

Message 19 of 20
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The Global Shipping Program scam

So the topic doesn't concern you and you haven't sold anything for 17 years. Maybe you should just talk about something you know something about.

Message 20 of 20
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