Why is the Global Shipping Program so expensive between the USA and Canada?

I'm a casual collector of coins and trading cards and eBay used to be one of my go to places for making such purchases. However, more and more, I have come up against the Global Shipping Program and I find it very dissuasive. I can't tell you how many items I've decided not to buy because of this stupid program. Shipping for a single coin or card from the USA to Canada usually hovers around 19 USD, which is ludicrous when you're trying to buy a single item that costs less than 2$. I'm supposed to pay 10 times the price of my item in shipping costs?

 

Worst of all, you can't even buy multiple items from one seller and combine shipping. This is completely absurd. There's no way to even offset shipping costs by buying multiple items. Sellers must be losing money left and right. I don't understand why the program makes shipping so expensive (shipping for small items from the USA to Canada used to be like $5 through USPS) and, most of all, I don't understand why you can't combien items. Can anyone explain it to me.?

Message 1 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

It's not only twice as expensive as USPS postage, it's twice as slow. First the item goes to Erlanger, KY, gets repackaged, then is sent to Mississauga, ON and finally sent to its destination. An item from Seattle across the border to Vancouver goes on a slow trip for thousands of miles. Meanwhile Pitney-Bowes pockets non-existent customs and brokerage fees. It's a scam and a scandal. Lots of American buyers think it makes shipping abroad easier. They don't seem to realise it also makes shipping less frequent. Like you, I've been put off so many tempting auctions because of Global Shipping.

Message 2 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

The Global Shipping Program is a Seller Protection for paranoid sellers in the US and UK, who otherwise would not ship beyond their borders.

It ends most protections of the Money Back Guarantee on delivery to the GSP plant. After that the GSP*** takes on buyer protection for delivery and damage in transit.

 

So the first reason is that the Seller using the GSP does not trust you. (Or likely anyone, but ...) so he uses the more expensive Priority Shipping instead of First Class Parcel International. This cost is passed to you.

 

The second reason is that the GSP "shipping" cost includes Canadian duty and sales taxes.

  • The Canadian duty-free allowance* is $150 and sales tax-free allowance is $50.

GSP charges cover those plus a small ~$5USD fee.

 

The apparently long delivery period is a function of spoke and hub delivery systems used not only by GSP but also by USPS, Canada Post, Air Canad, and famously by FedEx who practically invented it.

All packages go to a central hub, from which they are reshipped to their final destination.

For the GSP the hub is in ErlangerKY. From there your parcel goes to Mississauga ** where Canada Post (usually) completes delivery.

Watching tracking is like watching sausages being made. Don't if you ever want to eat bangers and mash again.

 

Having been in mail order for some 30+ years, it is my observation that it takes 20 days on average for delivery within North America.

 

Mark the date for delivery on your calendar, and don't think about delivery until that date passes. At that point, you either have your purchase or you can open an Item Not Received Dispute.

 

 

 

 

 

 

*I understand that there is no duty on bullion or coins. There have been complaints that GSP charges these anyway.  They probably remit it too, which is a bonus for Revenue Canada. Since you do not pay the duty, you pay a fee that covers the duty, you are not going to be able to appeal this to Revenue Canada.

** The Gateway plant has been fully or partially closed a few times in the past months due to COVID outbreaks. Some GSP parcels have instead been sent to Winnipeg.

*** And GSP (Pitney Bowes) is a large company with good insurance. Generally, disputes over delivery or damage get a prompt refund without argument. They just think of disputes as a business expense and that most people are disputing a real problem.

 

 

Message 3 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

**bleep**. This is beyond absurd. I didn't even notice that they also charge $15-20 in import fees on top of all this for some items! They really think that I'm going to pay $40 in shipping for an item that weighs less than 50 grams and fits in a regular envelope? Insane.

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Why is the Global Shipping Program so expensive between the USA and Canada?

marnotom!
Community Member

I think if those marketing the GSP were more upfront about the fact that it's basically a glorified forwarding service, people's expectations of the service would be more realistic.

 

Because it's a forwarding service, you're paying for two shipping charges combined into one on the listing page:  the seller's charge for shipping it as a US domestic item to Kentucky, and the GSP's charge for shipping the item to a central hub in Canada plus the shipping charge from getting it from that hub to its final destination.

 

In addition, one of the GSP's many weaknesses is that it requires accurate information from the seller, which isn't always provided (particularly if the seller is unaware that they're in the program).  If the seller doesn't provide information on the item's shipping size and weight--which is quite likely for a small item that's being shipped flat-rate domestically--the GSP "bot" has to estimate the shipping charge based on a category average.  The nature of averages means that if the item is heavier than that average, the buyer will likely get a good deal on the shipping, while if it's lighter than that average, the buyer is going to pay through the nose.

 

High shipping charges aren't the exclusive domain of the GSP, however.  I was looking for universal power adapters/chargers today, and I found some that were being shipping by some unspecified international shipping method for US$60, and I have no idea if I'd still owe import charges upon receiving the item.

 

Roundabout travel journeys aren't the exclusive domain of the GSP, either.  I recently ordered something electronic that turned out to be shipping from Hong Kong.  I decided to check on the tracking as it's been about a week and a half since I was notified the order had gone out, and it turns out it's touched down in Toronto.  I'm in British Columbia.  Another example: my wife ordered something from SE Asia that went to Alaska and Seattle before going through customs in Vancouver and over to us on Vancouver Island.

 

Remember, it's called the Global Shipping Program and not the Canada Shipping Program because about 100 other countries are served by this service besides us, and everything to everywhere goes through the Kentucky hub first.

Message 5 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?


@carlos.viva wrote:

**bleep**. This is beyond absurd. I didn't even notice that they also charge $15-20 in import fees on top of all this for some items! They really think that I'm going to pay $40 in shipping for an item that weighs less than 50 grams and fits in a regular envelope? Insane.


It's important to realize that any additional charges are based on the final value of the item. Weight only controls the base postage. The additional charges include that fun and exciting processing fee, duties connected to the item and applicable taxes based on your province. GST/PST/HST. See additional posts for the specifics.

 

-Lotz

Message 6 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

they also charge $15-20 in import fees on top of all this for some items!

 

Yes.

Those fees are made up of Canadian duty (on items valued over $150Cdn) and Canadian sales taxes (on items valued over $40Cdn) plus a service fee of ~$5USD.

 

Duty on bullion and coins is questionable. I have been told there is no duty on bullion, not too sure about coins.

You will be paying your province's version of GST/PDT/HST.

 

I also doubt that the seller would be willing to drop a coin valuable enough to attract $40-$50 in duty and tax into an envelope and send it letter mail without tracking.

So now we have to look at the cost of Priority International or First Class Package International plus paying duty and tax at the PO Counter or on the doorstep.

https://postcalc.usps.com/?country=10440

Message 7 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

               I'm  on the border and to ship an 4lb item , 5 miles from the Canadian P.O. to USPS , 5 miles away will cost  $20 .  The item leaves the local P.O. and is sent to Toronto , then flown to Chicago where it's trucked where ever in the US .  You could be shipping from Niagara Can. to Niagara NY , perhaps 10 miles , where there are 2 international bridges for trucks , but no , they fly it to Chicago and truck it back to the Niagara NY address ...... Prior to Global shipping in the US , still not available in Canada for shipping , USPS also shipped to Chicago where it was flown to Toronto .  UPS uses the bridge in Buffalo but for some reason the P.O.s     don't .

Message 8 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?


@marnotom! wrote:

I think if those marketing the GSP were more upfront about the fact that it's basically a glorified forwarding service, people's expectations of the service would be more realistic.

 

Because it's a forwarding service, you're paying for two shipping charges combined into one on the listing page:  the seller's charge for shipping it as a US domestic item to Kentucky, and the GSP's charge for shipping the item to a central hub in Canada plus the shipping charge from getting it from that hub to its final destination.

 

In addition, one of the GSP's many weaknesses is that it requires accurate information from the seller, which isn't always provided (particularly if the seller is unaware that they're in the program).  If the seller doesn't provide information on the item's shipping size and weight--which is quite likely for a small item that's being shipped flat-rate domestically--the GSP "bot" has to estimate the shipping charge based on a category average.  The nature of averages means that if the item is heavier than that average, the buyer will likely get a good deal on the shipping, while if it's lighter than that average, the buyer is going to pay through the nose.

 

High shipping charges aren't the exclusive domain of the GSP, however.  I was looking for universal power adapters/chargers today, and I found some that were being shipping by some unspecified international shipping method for US$60, and I have no idea if I'd still owe import charges upon receiving the item.

 

Roundabout travel journeys aren't the exclusive domain of the GSP, either.  I recently ordered something electronic that turned out to be shipping from Hong Kong.  I decided to check on the tracking as it's been about a week and a half since I was notified the order had gone out, and it turns out it's touched down in Toronto.  I'm in British Columbia.  Another example: my wife ordered something from SE Asia that went to Alaska and Seattle before going through customs in Vancouver and over to us on Vancouver Island.

 

Remember, it's called the Global Shipping Program and not the Canada Shipping Program because about 100 other countries are served by this service besides us, and everything to everywhere goes through the Kentucky hub first.


I purchased something recently through The River USA to Calgary. (Using a US gift card) and because I couldn't find on eBay. Item went from the east coast to California and bounced around for 2 + weeks before finally forwarded to Van. Once in Van. it was forwarded to Calgary 1 day later. Shipping was flat 10.00 USD. Item was 14.50. Fortunately if I need a certain power supply I just have to go through my collection. Voila. Ordering for the past few years from US sellers has become a last last last last resort. 99 times out of 100 because of lack of anything resembling reasonable shipping. Especially for most electronics. Name brand or generic. Light or heavy.

 

-Lotz

 

PS. If that item purchased was available on the Canadian site I would have had the next day with that crazy free(subscription) shipping. Something most eBay sellers are unable to offer.

Message 9 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

Again Spoke and Hub distribution.

 

I live in Victoria on Vancouver Island. If I want to send a birthday card to my SIL in Comox upisland, it will go from Victoria to the dock in Sydney, by ferry to Vancouver (actually Richmond), then back to Sydney, then up to Comox.

But here's the thing.

That's actually more efficient, because my card is not being hand-delivered. I could do that if I wanted to drive to Comox. It would take about three hours each way, plus gas.

 

Here is a scan of Air Canada's North American routes. It is the best example I have found of spoke and hub delivery.

Try to get to Vancouver from FortMac. Or from FortMac to Halifax.

There are no direct routes, because not enough people fly from FortMac to those destinations. At each stop the airline is dropping off and picking up passengers until it is economic to get to the destination. spoke and hub Air Canada 1.jpeg

Message 10 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

I'm ordering some plastic car window vent/shade things (rain doesn't get in if you open the windows a bit).  These things are custom-made for individual cars, and are somewhat expensive ($60 - $80 US for a set, even before shipping).   I had put the item in my watch list some time ago and recently the seller knocked $5 off the price (to $61 US) and I ordered it.  The seller is in the US. 

 

What I'm seeing for shipping details now that I've ordered it is - Shipping $14, Import charges $12.  The shipping carrier is listed as Fedex, I'm not seeing GSP listed, nor have I got the tracking emails that indicate the item was received by GSP depot.    I see 2 tracking numbers (Global tracking UPAA and a Fedex tracking number).   But interestingly, the global tracking number does indicate this is Pitney Bowes (?).   On the Order Details page, the "Package Carrier" is listed simply as Fedex.

 

Another item I ordered recently (a package of underwear) from the US, $25, only had a single total shipping charge of $4.  The "Package Carrier" is listed as "eBay standard".  I think I got it in 8 or 9 days (canada post).

 

 

 

Message 11 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

It's possible that the seller is using Fedex to send the item to the gsp center which is run by Pitney Bowes.

 

If you paid $4 shipping from the US the seller must have sent it by lettermail.  Although there are a few around, most US sellers refuse to ship anything without tracking.  The least expensive service with tracking to Canada is first class international package and the cost starts out at about $14 US.

Message 12 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

The illogic of shipping... its cheaper to ship a parcel from Ottawa to Los Angeles... some five thousand miles away than to ship it to another address in the same originating postal code.

Message 13 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?


@deeeight wrote:

The illogic of shipping... its cheaper to ship a parcel from Ottawa to Los Angeles... some five thousand miles away than to ship it to another address in the same originating postal code.


The item being sent from Ottawa to Los Angeles is travelling by small packet, which is a variation on oversize international letter mail.  The item being sent domestically is being sent by parcel post, which has a different rate structure entirely.

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Why is the Global Shipping Program so expensive between the USA and Canada?

> If you paid $4 shipping from the US the seller
> must have sent it by lettermail. Although there
> are a few around, most US sellers refuse to ship
> anything without tracking.

 

I have no idea how, but it was tracked:

 

eBay standard tracking #RRD_some_number

Jun 9, 2021 Delivered
Jun 9, 2021 Loaded on Truck
Jun 9, 2021 Arrived at Terminal Location
Jun 9, 2021 On Route to Delivery Location
Jun 8, 2021 Received from Prior Carrier
Jun 8, 2021 Tendered for Delivery
Jun 8, 2021 Left Reliable hub
Jun 8, 2021 Received at Reliable hub
Jun 7, 2021 In transit to Intelcom tracking #RLSC_numbers
Jun 7, 2021 Parcel Shipped
Jun 7, 2021 Label Generated
Jun 7, 2021 Parcel Processed
Jun 7, 2021 Parcel Received
Jun 3, 2021 Data Received Shipment in Transit
Jun 2, 2021 Tracking number provided

 

Shipping:
US $3.99 (approx. C $4.97) Standard International Shipping | See details
International shipment of items may be subject to customs processing and additional charges.

Item location:
Bolingbrook, Illinois, United States

 

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Why is the Global Shipping Program so expensive between the USA and Canada?

@sonometrics 

The window shade is $60+ dollars.

There would be no duty** from the USA , but GSP charges import fees based on sales tax ($7.80 + here in BC) as well as a ~$5.00US/$6.50 service fee.*

So the import charges sound a bit low, but unless we had the exact price and your province, so be it.

We spot the GSP listings when we see these words on the listing:

"Customs services and international tracking provided"

GSP is run by Pitney Bowes (yes. the postage meter people)

 

The shipping carrier is listed as Fedex,

Hmm.

Okay. The seller used FedEx ? USPS? to carry the purchase to Erlanger KY, perhaps?

Do you see that on the tracking?

Then once in Erlanger (the GSP plant) it joins hundreds of other parcels headed for Canada.

GSP usually doesn't name the carrier.

Then it (again, usually) is transferred to Canada Post., but others are used including FedEx, CanPar, and a few others we know from complaints.

Could you show the dates and times for those carriers.

The UPAA number probably indicates that GPS is using FedEx as last mile carrier.

 

 

 

, $25, only had a single total shipping charge of $4. The "Package Carrier" is listed as "eBay standard". I think I got it in 8 or 9 days (canada post).

At $25 neither duty nor sales tax would be charged.**

 

EBay Standard is meaningless. Basically the seller didn't choose a specific service, instead working from the delivery time.

And USPS/Canada Post is the cheapest way to ship.

 

And of course, while shipping is based on weight, dimensions, and destination, import fees are based on value.

A  gold necklace that sold for $100 and weighing  25grams would cost more to import than a handkerchief weighing the same but sold for $10.

 

Hope this helps.

 

 

*Canada Post charges a $9.95Cdn service fee. UPS starts at $25.

**Duty is charged on items valued over $150Cdn and sales taxes on items over $40Cdn.

Message 16 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

Gosh.

This may be the first time we've heard of a shipment using the new eBay Standard delivery AND Intelcom that did not turn into a big pile of elephant poo.

Message 17 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

According to the fedex tracking number it's being delivered to Erlanger. Handed to Fedex (in Philadelphia) on the 17'th, will be at Erlanger on 21.

 

Order total

Subtotal US $61.44

Shipping:
International leg US $14.32
Domestic leg Free
Import charges US $12.22

Total US $87.98

 

HST should be $7.98 (US) on $61.44 (US). The extra $4.23 must be Pitney Bowes cut (4.23 + 7.98 = 12.22).

I'm in Ontario. Estimated delivery: Jun 26 - Jul 5

Message 18 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

Okay- phew!  The shipper used FedEx to ship to Erlanger.

Once there you will get the UPAA number as tracking.

 

FedEX has a bad rep in Canada for billing import fees well after delivery.

And Intelcom is just really bad at their job from several reports.

 

But looks like you have skipped both problems.

 

And since FedEx is private, there will not be a federal holiday slowdown (the new Juneteeth holiday).

 

And yes, the GSP fee is usually around $5US.  So no problem.

Message 19 of 24
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Why is the Global Shipping Program so expensive between the USA and Canada?

Interesting, I have no idea what carrier they used that would have charged $4 with tracking but it wouldn't be usps and isn't the norm.  

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