50% UPS Brokerage fee????

[kazoobers]

I bought an item that was $99.95 US. The Seller charged me $16.00 for UPS standard shipping to Canada.

The package arrived and here is a Brokerage C.O.D. due to UPS for $54.17. What a rip! The seller said nothing about additional fees due IN ADDITION to the $16.00 I paid him for the shipping. By looking under Help in eBay, I see there is nothing I can do about it.

[deev_hutch]

And unsuspecting buyers are supposed to look up threads on UPS brokerage BEFORE they encounter any problems? Are they supposed to just PREDICT that they'll have a problem before it occurs, and log onto the forums to look for the appropriate threads????!!!!

I know the first time UPS dinged me for these fees, I had no idea at all (and it was not an ebay transaction - it was direct from a US company). The large US company apologised to me. They had no idea that the fees would be 50% of the value of the item. At that time (a few years ago) UPS representatives could not explain how the fee was derived. There was nothing whatsoever on their website about brokerage fees. Each UPS rep I spoke to came up with a different story. Each UPS rep I spoke to was incredibly rude.

[canuckchat]

no - you come here - you look for somebody else that has had the same problem - and you find out that yes indeed, receiving an item via courier is NOT the way to go - you do not rant on and on about UPS being an evil entity and other things that people have said ... its a fact of life that you WILL incur brokerage charges .. in fact, the .com boards are also letting people know this as well

[deev_hutch]

Or you join the class action suit against UPS:

http://www.poynerbaxter.com/UPS.htm

I guess enough people are irritated, and feel that:

"the amount of the brokerage fee charged is grossly excessive."

[kazoobers]

"Try importing steel and see what kind of brokerage you get charged. On top of which, every time Canadian steel companies got their knickers in a knot, they would set up an 'inquiry' with the Canadian government and we would have to backtrack through 5-7 years worth of imports to PROVE we had paid our due diligence on all imported steel!"

Hmmmm, I searched eBay but I can't find anyone selling steel right now. 😉

[mikeogilvie89]

no and the GOVERNMENT has NOTHING to do with brokerage-- as they do not collect it nor do they charge it!!! so I don't know what "inquiry" the governement can do ?

[canuckchat]

business folks.. business... anybody that has ever done any kind of business dealings cross border would have the knowledge that YES you will pay for a broker to clear your PAPERWORK

it might be a global community "buying online" but that does NOT mean that the global community is all "canada" as it is not ... give your head a shake folks.. you ARE IMPORTING goods from OUTSIDE of CANADA.... do you think that its just gonna drop inside the border without anybody saying "what is this, where is it going, what will it be used for, what is the value of it" and so on???

[deev_hutch]

"anybody that has ever done any kind of business dealings cross border"

We're talking about regular CONSUMERS here, ebay buyers who are purchasing small items. Not people with experience in cross border business dealings!!!!!

When USPS/Canada post charge $5 for a service, and UPS charge anywhere from $20 to $70 FOR THE EXACT SAME SERVICE, that is the problem! Especially when UPS does NOT clearly explain the brokerage charges to either the shipper or receiver!!!!

[deev_hutch]

The current lawsuit against UPS charges that:

"the amount of the brokerage fee charged is grossly excessive."

This is NOT just a few people whining on a message board.

[mikeogilvie89]

yes but "real" business folks know that you can't charge $50 for something someone else will do for $10 and be in business long!!!!. it's called compitition and if enough people COMPLAIN the price drops ---ever hear of a gas war?????? the price can drop in half in 1 day to deal with the compitition!!!

[canuckchat]

Consumers who shop in the global marketplace need to educate themselves ... ignorance is not a defense.

[deev_hutch]

mikeogilvie89 - yes, but this situation is more complicated. The actual customer of UPS is the shipper. The shipper is not irritated, because they in fact only pay for the shipping charge (which is well advertised to them) The RECEIVER of the goods is mighty irritated, because they have to pay this inflated brokerage fee. They are not UPS's customer. They don't send lots of goods like the shipper does.
The receiver of goods ends up often being irritated at the company that sold them the goods (which is not right - it's not really their fault). The receiver of goods never entered into a contract or business relationship with UPS. They have limited control over how things are shipped TO them. To UPS, the receiver of goods is simply a cash machine, not a customer. The shipper of goods is the customer.

[mikeogilvie89]

I agree. they ship UPS because it is "cheaper" for them--that is the only reason and UPS makes it cheaper for them by dinging you--the "real customer"--but if enough people complain they will reverse it and bill the shipper not the receiver!!!!

[sysfixr]

but there is the exact main point
usps/cp = gov't corp's

ups fedX and any other privately run .. privately run .. courier organizations, that are just that-
privately run businesses in it TO MAKE MONEY

it is up to the BUYER to know/understand/comprehend/realize what they are doing, NOT a seller, NOT ups, NOT ebay

also - "REAL" business folks?? the real business folks know - you charge what the market will bear

?supposing you get elected head of ups, and slash the rates - you'll not be head of ups for long, gauranteed!

I think the share-holders may also have a say in it, not sure tho ... the words of what, maybe ~1% of their profits(Canadian ebay transactions) ... or the people that actually have a vested interest ie:money, lots of it, in the courier co. showing a profit?

hmm gee, who to listen to

[mikeogilvie89]

yes and people have to admit when they are WRONG---

-they would set up an 'inquiry' with the Canadian government and we would have to backtrack through 5-7 years worth of imports to PROVE we had paid our due diligence on all imported steel!"
---THE GOVERNMENT HAS NOTHING to do with brokerage fees so the governement has NOTHING to investigate !!

[deev_hutch]

Yes, canuckchat, "ignorance" is a defense, if a business has committed an unethical business practice. Consumers should certainly not complain if they have to pay a brokerage fee. That is a fact of life. They do have a right to complain about an inflated and unreasonable fee that is not well explained.

For example, I have a store selling widgets for $1 each. In teeny tiny writing under the doorway, there is a sign that says "all customers must pay a $20 fee for a shopping bag".

A customer enters and buys 10 widgets. He gives me his credit card. I charge him $30. He says "hey wait a minute! that's not right!" I tell him - "ha, you should have read the fine print!" He gives the bag back. I tell him it's now a used bag, and I can't take it back. If he simply leaves, I keep his widgets and his $30.

Should this consumer simply have educated themselves about how this business is run? Or should there be some consumer protection from such unethical practices?

[deev_hutch]

sysfixr - about 'charging what the market will bear"...

please read my previous comment. The customer of UPS is the SHIPPER, not the RECEIVER. They are overcharging the RECEIVER of goods. They could give a care less, as long as they can keep their customer (the shipper) happy.

[canuckchat]

if a business has committed an unethical business practice

Who says it is unethical? you?

[deev_hutch]

Well yes, I think it is unethical to charge someone an excessive fee if you have not entered into a business contract with them and have not disclosed the fees to them.

Of course, you are free to feel otherwise.

Many others also contend that:

"On the purchase of goods from the US, UPS fails to obtain consumers’ consent to act as customs broker; or to disclose the existence or amount of the brokerage fee which they charge; or to provide consumers with the opportunity to arrange for customs clearance by themselves. The amount of the brokerage fee charged is grossly excessive."

[canuckchat]

ah.. but you CAN arrange to clear it yourself.. that ALSO has been discussed on the forums

[deev_hutch]

ah.. but you CAN arrange to clear it yourself.

Ah, but UPS does not make it clear that it is an option, and in many cases, have made it as difficult as possible for the receiver or have given incorrect information.