Why does ebay endorse a shipping group like Global that is clearly overcharging?

The shipping costs are just rediculous, and I have found that they don't tell the sellers on their end, what the buyers are asked to pay. Many seller are very surprised to hear my costs and have actually stopped used Gloval after they find out what buyers have to pay. Many have said to me--that their international sales are way down and they didn't realize why. When I forward the charges I have to pay--they are embarrassed. I now look first, and if Global is involved in the transaction, I don't bid.

 

Ebay and Global need to let the sellers know what the buyers are asked to pay for shipping, handling, and duty. I think there should be an investigation into these overcharges.  I almost never pay duty unless the item is really expensive, and now I pay duty on everything. Who is actually making all this extra money- someone is laughing all the way to the bank.

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Why does ebay endorse a shipping group like Global that is clearly overcharging?

Hi djmat55, welcome to these forums!

 

I'm sure you'll probably get lots of people offering advice and thoughts on this.. my contribution is going to be small, so I'll only offer that "Global" isn't an entity or shipping provider... the shipping provider used in these cases is Pitney Bowes.  The program ebay has instituted for shipping internationally for US sellers is the "GSP" (Global Shipping Program).

 

Lots of threads and stories about this issue on the forums 😉  and I think its safe to say that you're not alone in how you feel about this!

 

Cheers 🙂

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Why does ebay endorse a shipping group like Global that is clearly overcharging?

marnotom!
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As ut.babe states, the Global Shipping Program was devised by Pitney Bowes for use by U.S. eBay sellers.  It was likely devised more for high-ticket or larger items as well as new sellers or naive sellers who have misconceptions about shipping outside of the United States.  Some sellers have been led to believe that it's a "one size fits all" solution for international shipping.  It ain't.

 

The GSP is absolute rubbish for the types of items that most Canadian eBayers purchase: modestly-priced, smaller items that can be shipped by First Class International (the US Postal Service equivalent of Canada Post's Small Packet service) and will likely squeak through customs without getting taxed, but keep in mind that parcel post and express mail are also generally overkill for small items.  It is what it is.

 

I'm prepared to keep an open mind for the GSP's place for larger and/or more expensive items, however, particularly if the seller cuts down on the shipping cost by offering "free" shipping within the United States.  I posted the other day about how I found a GSP listing for a Smartphone that had a shipping rate of less than $19 which seems pretty reasonable for a shipping method that offers a seller a fair bit of security.  I've also seen test listings by a U.S. seller which show that shipping large items through the GSP can see a bit of a savings over the postal system, even with import charges (taxes plus various customs charges) factored in.

 

Where the GSP seems to seriously fall down is in matters of customer service.  Recourse in the event of a lost item seems to be difficult to obtain, and it's a laborious and slow process to receive refunds for Pitney Bowes share of the fees for sales not completed for whatever reason.

Stories are starting to pop up about the repackaging of items sent through the GSP but I'm reserving judgment on them until I can find some evidence that I can follow.  Ranting is at best unreliable evidence, at least in my books.

 

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Why does ebay endorse a shipping group like Global that is clearly overcharging?

heat912
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In response to djmat55's "Ebay and Global need to let the sellers know what the buyers are asked to pay for shipping, handling, and duty. I think there should be an investigation into these overcharges. I almost never pay duty unless the item is really expensive, and now I pay duty on everything. Who is actually making all this extra money- someone is laughing all the way to the bank." ... AMEN TO THAT!!

I have never been so frustrated by the GSP. I was quoted $54 (same price as the darn item!) to have something shipped to Canada, whereas a package of same size, but heavier weight made it to my door for $15 via the regular US mail. These overages are a HUGE scam. It's no different than travel companies or cell phone providers charging "hidden" fees.

Unless I'm desperate, I've stopped buying from sellers that use the GSP. Some have realized how much it actually costs me, and have opted to use regular mail or refund the difference.

I think GSP should be discontinued!
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Why does ebay endorse a shipping group like Global that is clearly overcharging?

On a $54 item Ontario would charge HST of $7.02 and Canada Post would charge a $10 service fee on top of the $15 paid to USPS for delivery-- I'm guessing by First Class International because Priority would start around $25.  

Canada Post is lax about collecting these but you are liable for them. The parcel will not be released until these fees are paid.

 

In contrast, the GSP charges the same HST (duty is rarely a factor for either program) and a $5 service fee, plus the cost of the shipping usually via FedEx from what we are hearing. Couriers usually do charge more than the postal system for international shipping.

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Why does ebay endorse a shipping group like Global that is clearly overcharging?

Most items imported from the USA are not dutiable. The fees you are liable for are sales taxes and service fees by the shipper. It should be noted that PB charges less for their service than does Canada Post. But they always collect them.
And they always collect the taxes too. Which money goes to the provincial and federal governments, reducing their debt and deficit.
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Why does ebay endorse a shipping group like Global that is clearly overcharging?

Why? Probably because eBay gets kick-backs from PB, which means that they won’t be doing away with it anytime soon, unless we all stop using it enough to make it no longer profitable. That’s easier to do if you try to use local classifieds like Kijiji, Craig’s List, eBay Classifides, etc. to buy locally as much as possible, and only buy non-GSP items through eBay.

 
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Why does ebay endorse a shipping group like Global that is clearly overcharging?

We don't have HST in Alberta, just the straight 5% GST.

 

If GSP does collect a $5 service fee, it adds up. Imagine buying four items for $10 each... That now becomes and extra $20 JUST for service fees, not including the shipping or duty (which I have NEVER had to pay for anyways in my 10 years of eBaying - perhaps I'm just lucky, but I've heard the same story from others as well). So we start with a $10 item, add $10-20 for shipping (depending on the seller, etc), add $5 service fee, and then whatever $ for so-called duty/tax. That $10 item has now turned into a $30-50 item. PLUS GSP doesn't do combined shipping, so I'm paying for everything all over again. $15 shipping (USPS) vs. $30-50 shipping (GSP) seems pretty straight-forward to me. 

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Why does ebay endorse a shipping group like Global that is clearly overcharging?


@reallynicestamps wrote:

On a $54 item Ontario would charge HST of $7.02 and Canada Post would charge a $10 service fee on top of the $15 paid to USPS for delivery-- I'm guessing by First Class International because Priority would start around $25.  

Canada Post is lax about collecting these but you are liable for them. The parcel will not be released until these fees are paid.

 

In contrast, the GSP charges the same HST (duty is rarely a factor for either program) and a $5 service fee, plus the cost of the shipping usually via FedEx from what we are hearing. Couriers usually do charge more than the postal system for international shipping.


I haven't seen any FedEx stamps, endorsement, or paperwork on my received GSP parcels, so I'm not sure if they're using a different courier, or what the deal may be?

 

Also, I have found that the regular USPS mail has arrived MUCH quicker than anything sent by GSP... I'm talking a one week difference. I mention this only as another point for requesting USPS from the seller, rather than GSP.

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