eBay

shallow_karl · ‎08-25-2020

Earlier, a $99 item from a private seller cost $20 to ship via USPS, no taxes, ends up costing buyer $119.00.

Now, with global shipping:

-4-5 extra days travel time.

-About a $7.00 global shipping fee. (hidden)

-Always gets taxed by Canada Post because of Ebay logo so another $13.00.

-Gets a $10 "processing charge" from Canada Post.

Total new cost: $149 plus 4-5 extra days wait.

Thanks much, Ebay.

reallynicestamps · ‎08-25-2020

Until July 1,2020, the duty free allowance for imports to Canada was $20.

CBSA usually overlooked low value/ smallish imports because it cost more to process the duty and sales taxes than they would collect. Common sense on the part of the public service.

A $99 item should have had duty assessed, and even if none were owing, Sales Tax would still be collected ($15 or so) plus Canada Post's $9.95 service fee.

If it wasn't, you were lucky. If your seller had chosen a courier like UPS, those import fees would have been collected and UPS had a 'customs brokerage fee' that started at $25 and rose with the value of the import. There are some 5000+ posts on an archived thread about this.

ALL your import fees (duty, sales tax, service fees) are paid in advance.

If you were charged by Canada Post on your doorstep, the seller did not use the GSP to ship your purchase. All that duty, sales tax and CPO's service fee were on top of the GSP fees you paid when you purchased.

The GSP is a freight forwarder. All the GSP shipping is done from Erlanger KY.

Check the tracking.

If Erlanger does not show up, the seller ignored the GSP and cost you a lot of extra money.

This is spoke and hub shipping which is counter-intuitive but actually pretty efficient. It is also used by FedEx, UPS, most airlines, most trucking companies, USPS and Canada Post.

Further.

July 1, 2020.

Under the new NAFTA agreement, you can import up to $150 worth of US or Mexican made goods without duty. You do have to pay sales tax on anything valued over $40.

If you purchased after July 1, you should not have paid ANY duty (depending on where your item was made, not where it was bought) only the sales tax and the ~$5US/~$7Cdn GSP service fee.

Could you clarify dates and charges? Are you sure this was a GSP shipment?

marnotom! · ‎08-26-2020

I think the OP is just ranting, @reallynicestamps, neither realizing that the Global Shipping Program is a forwarding service nor appreciating how lucky they were to have their postal imports go unassessed for taxes and duties owing.

femmefan1946 · ‎08-26-2020

FB does not indicate any recent purchases or sales, fwiw.

noguffay0117 · ‎08-26-2020

"If you were charged by Canada Post on your doorstep, the seller did not use the GSP to ship your purchase. All that duty, sales tax and CPO's service fee were on top of the GSP fees you paid when you purchased."

"If Erlanger does not show up, the seller ignored the GSP and cost you a lot of extra money. This is spoke and hub shipping which is counter-intuitive but actually pretty efficient"

Are you saying that some sellers will use the GSP service, but sometimes, or all the time (for all we know) accidentally or purposely not ship it through the GSP? Causing buyers to pay for the service and then still possibly get dinged again at the doorstep for duty and brokerage from CP?

Doesn't that seem like something that could be prevented by eBay? There are actual incidences of this happening?

ypdc_dennis · ‎08-26-2020

@shallow_karl wrote:
-Always gets taxed by Canada Post because of Ebay logo ...
-Gets a $10 "processing charge" from Canada Post.

If you really bought an item shipped with the Global Shipping Program then you should have had no taxes and processing fee collected by Canada Post. The purpose of GSP is that there are no fees at time of delivery (it is all prepaid at time of purchase).

Perhaps you are referring to eBay's new International Standard Delivery program?

What’s the difference between eBay international standard delivery and the Global Shipping Program?
eBay international standard delivery is a Delivered Duties Unpaid (DDU) shipping solution — buyers won’t pay duties and tax at checkout on eBay, but may have to pay the carrier for duties and tax on delivery. eBay international standard delivery gives [the seller] full control of what to charge buyers for shipping (Free, Flat, Calculated) from end to end.
The Global Shipping Program (GSP) is a Delivery Duties Paid (DDP) shipping program — buyers pay duties and tax during checkout on eBay via GSP. With GSP, the buyer always sees the GSP shipping charges, and also any costs [the seller] sets for the domestic shipping leg (Free, Flat, Calculated).

lotzofuniquegoodies · ‎08-27-2020

@ypdc_dennis

Also with Ebay International Standard Delivery it gets sellers a 14% discount for shipping to Canada according to the dot com blurb when they sign up. Score one for US sellers!!!

-Lotz

femmefan1946 · ‎08-27-2020

Because eBay put many new sellers into the GSP when it was introduced, and because international/Canadian sales are a rare thing for US sellers, who are working in the world's largest single economy, yes.

Many US sellers are unaware that they are enrolled and instead of shipping to Erlanger send the purchase directly to the buyer usually via USPS/Canada Post.

Which can mean that the buyer pays twice for duty and sales , and pays more for service charges. ($9.95 for Canada Post and $25 up for couriers.)

We see a complaint about this about ten times a year, so it is not unusual.

And a ladydog to straighten out.

nostalgicaftertaste · ‎08-27-2020

That's good to know! Thank you for sharing that.

highland.2112 · ‎08-27-2020

This is a useful post, and the reason my buying on ebay has dropped by 80 percent, and probably the reason my post will never see the light of day.

recped · ‎08-27-2020

@femmefan1946 wrote:
Because eBay put many new sellers into the GSP when it was introduced, and because international/Canadian sales are a rare thing for US sellers, who are working in the world's largest single economy, yes.
Many US sellers are unaware that they are enrolled and instead of shipping to Erlanger send the purchase directly to the buyer usually via USPS/Canada Post.
Which can mean that the buyer pays twice for duty and sales , and pays more for service charges. ($9.95 for Canada Post and $25 up for couriers.)

We see a complaint about this about ten times a year, so it is not unusual.
And a ladydog to straighten out.

How can they be "unaware" when eBay only provides them with a shipping address in Erlanger KY.

"What else could I do? I had no trade so I became a peddler" - Lazarus Greenberg 1915
- answering Trolls is voluntary, my policy is not to participate.

marnotom! · ‎08-27-2020

@recped wrote:

How can they be "unaware" when eBay only provides them with a shipping address in Erlanger KY?

I'm not sure how they get hold of the buyer's mailing address, but as far as "unawareness" goes, there are several posts/threads on the .com discussion boards along these lines:

https://community.ebay.com/t5/Member-To-Member-Support/Scam-address-1850-Airport-Exchange-Blvd-200-E...

shallow_karl · ‎08-28-2020

What is this "duty" nonsense??? There IS no duty on 99% of items imported from the U.S. It's TAXES, and they are not the same thing. Last time I paid duty I paid 4% for an import directly from Japan.

marnotom! · ‎08-28-2020

@shallow_karl wrote:

There IS no duty on 99% of items imported from the U.S. It's TAXES, and they are not the same thing. Last time I paid duty I paid 4% for an import directly from Japan.

If you were to import that same item from the United States and it was manufactured in Japan, it would be subject to the same 4% duty.

Importing items from the United States does not necessarily exempt them from duty.

Perhaps I misunderstood your post.

reallynicestamps · ‎08-28-2020

Canada has Free Trade Agreements with many countries.

In addition to NAFTA, there is the TPP with 13 Pacific Rim nations, and CETA with the European Union. We even have a free trade agreement with Mali.

Imports are assessed for duty no matter where they were manufactured (and it is manufacture not purchase) and the duty may then be zeroed out.

CBSA (or its sub-contractors like those in Erlanger) do the assessment and at the same time pay the sales taxes (GST/PST/HST/QST).

In the case of the GSP, the applicable duty and taxes plus a service charge, are estimated at the time the listing is made, which is why you can see your import cost when you agree to purchase.

But YOU do NOT pay those fees.

You pay the GSP charges, which they * call "import fees", and GSP pays the Canadian government.

Which is also why the GSP is specifically not for use by businesses, who need the exact figures for their GST/etc monthly payment.

And since we're talking about sales taxes, US imports are charged applicable sales taxes if the import is valued over $40 (as of July 1,2020) no matter where the product was manufactured and on both new and used goods.

The duty -free allowance rose on the same date to $150Cdn on US and Mexican manufactured goods.

* Other carriers break down the charges, and all have a price on that part of the job, UPS calls them "customs brokerage fees " starting around $25 and Canada Post has a "service fee" of $9.95.

g.haley · ‎03-22-2022

As a Canadian buyer on eBay, there is no doubt that the GSP has resulted in:

1. Longer wait times for processing through a third party.

2. Increased shipping costs. I generally buy physically small and relatively inexpensive items, under $100. Yes, I would sometimes have duties and taxes to pay via Canada Post, but not often. Now I always do.

Most of the time, when I point this out to sellers, they say they had no idea that their shipments were going via GPS, nor what the real shipping cost (postage + duties + third-party handing fees) was to the international buyer. Some are willing to ship direct via USPS/Canada Post. Others, due to lack of familiarity with eBay seller settings, are unable or couldn't be bothered to change the shipping - that's their prerogative, of course. But I feel it's important they be aware so that they truly have a choice.

At the root of the question is not whether the GSP is a good system for buyers (how could it be?) The questionis is whether the GPS is really a good service to sellers. Maybe it is for those sending to countries with unreliable/corrupt postal services, at higher risk of undelivered or unaccepted packages. But Canada, the UK, France, etc. do not fall in this category.

So, do I buy less via eBay because of all this? Yes, probably about 50% less than before. Do I think eBay cares? No, I don't think so. Let's not forget that eBay 1) sets the GSP as the default for all US sellers, and 2) takes a cut of the "service fee." So, no, I don't think eBay cares that the GSP leads to less international buying. Whatever business eBay might be losing this way, I am sure they more than make up for it in the cut they receive from the GSP. This is simply good business on their part.

Do I think the GSP is always a good "service" for the sellers, whose pool of good prospective bidders and buyers has shrunk. Some yes, some no, depending on the nature of their business. But make no mistake, it is never a losing prospect for eBay. I don't see how eBay can be "shamed" into changing a practice that is perfectly legal and undoubtedly profitable for their company, regardless of customer dissatisfaction, especially since those customers aren't Americans and have no leverage.

Sellers are the only ones who can take any positive action, in their own interest, so it's best to make them aware.

marnotom! · ‎03-22-2022

@g.haley wrote:

At the root of the question is not whether the GSP is a good system for buyers (how could it be?) The questionis is whether the GPS is really a good service to sellers. Maybe it is for those sending to countries with unreliable/corrupt postal services, at higher risk of undelivered or unaccepted packages. But Canada, the UK, France, etc. do not fall in this category.

So, do I buy less via eBay because of all this? Yes, probably about 50% less than before. Do I think eBay cares? No, I don't think so. Let's not forget that eBay 1) sets the GSP as the default for all US sellers, and 2) takes a cut of the "service fee." So, no, I don't think eBay cares that the GSP leads to less international buying. Whatever business eBay might be losing this way, I am sure they more than make up for it in the cut they receive from the GSP. This is simply good business on their part.

As you point out, the GSP can be beneficial to buyers living in countries with questionable mail systems or customs bureaux. It's not such a good fit for most Canadian sales because of our geographical proximity to the United States and the fact that trade barriers between us and them have been whittled away since the end of the Second World War.

However, if a seller is using the GSP to its best advantage, it can still have some benefit to Canadian buyers. I don't think I would have even considered buying cell phones on eBay prior to the GSP as most US cell phone sellers would have been using carriers that cost an arm and a leg and I'd have no way of knowing if customs clearance fees were included in that shipping price or if I'd be paying a kidney upon or after delivery of the item. The GSP ships cell phones to Canada for a price comparable to First Class Package International--which most US sellers don't use for cell phones--and as I'm in BC, the "import charges" are calculated just on GST and the US$4-5 processing charge, no provincial sales tax.

The thing we have to remember is that while we may end up passing on a lot of GSP-forwarded items that we find in our searches, those items probably wouldn't be offered to Canada, period, if the GSP didn't exist, so there's that.

And, yes, I know I'm posting to a zombie thread.

lotzofuniquegoodies · ‎03-22-2022

@marnotom!

GSP is the zombie thread that never goes away!!! No matter which one you are responding to.

-Lotz

femmefan1946 · ‎03-27-2022

ZOMBIE THREAD FROM AUGUST 2020

The problem with zombie threads is that the information and advice may be out of date and incorrect.

For example, in July 2020 the duty free allowance for US manufactured items rose to $150Cdn from $20 and the tax free allowance to $40.

kdwebber · ‎04-23-2024

Anyone who suggest that the ebay global shipping program is good for buyers or sellers has no idea what they are talking about, or they work for ebay. As a Canadian it has caused me to reduce my purchases from the US by about 90%. That means no bidding on American items, and driving the bids up. The sellers lose out on higher auction sales. If you all are fine with lower auction sales, that's fine. I know that I am not the only Canadian who has basically stopped bidding on American auctions because of the outrageous shipping fees charged by the ebay global shipping program.