WHy is the Global Shipping Program even a thing?!? It's a scam.

YOu guys are adding on charges to orders that the Canadian Border Agency wouldn't even friggen tack on.

 

https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html

  • goods worth CAN$20 or less; and
  • gifts from family members or friends who live abroad when the worth is CAN$60 or less.

On top of that charges should only be 13% of whatever the item costs(NOT INCLUDING SHIPPING COSTS.)

 

Now look at this garbage: https://www.ebay.ca/itm/Funko-Pop-Plastic-Protector-Case-Fits-6-inch-Pop-Figures-6-Pack/253295067075...

 

One friggen item, that costs $22 CANADIAN is getting hit with $7 in import fees. THat's almost HALF the cost of the item. What is wrong with you Ebay? I refuse to use your site until you remove the blatant scam. Ebay was fine before you decided to bring this scam in.

 

And to American sellers, remove the GSP if you want more Canadian sales. GSP is a scam and there's NO reason for it.

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

marnotom!
Community Member
Have you hit the "learn more" link on the listing page to find out what goes into those "import charges"?
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

"....$22 CANADIAN is getting hit with $7 in import fees."

 

The de minimus is $20 CAD on import by mail for most items. Not $20-ish, meaning $19.99 CAD is under rate limit and $20.01 is over the limit. With the taxes also comes a fee for collecting it. 

 

Buy Canadian and avoid the Global Shipping Program altogether. 

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

marnotom!
Community Member

@brothanigus wrote:

YOu guys are adding on charges to orders that the Canadian Border Agency wouldn't even friggen tack on.

 

https://www.cbsa-asfc.gc.ca/import/postal-postale/dtytx-drttx-eng.html

  • goods worth CAN$20 or less; and
  • gifts from family members or friends who live abroad when the worth is CAN$60 or less.

On top of that charges should only be 13% of whatever the item costs(NOT INCLUDING SHIPPING COSTS.)

 

Now look at this garbage: https://www.ebay.ca/itm/Funko-Pop-Plastic-Protector-Case-Fits-6-inch-Pop-Figures-6-Pack/253295067075...

 

One friggen item, that costs $22 CANADIAN is getting hit with $7 in import fees. THat's almost HALF the cost of the item. What is wrong with you Ebay? I refuse to use your site until you remove the blatant scam. Ebay was fine before you decided to bring this scam in.


Okay, now I have a chance to provide a slightly more detailed response.  It's already been noted that the item that you mention is subject to taxes and duty (if applicable) as it's valued at over C$20.

Items sent by mail and are stopped for assessment of taxes and duty by Canada Border Services are also subject to a C$9.95 charge by Canada Post for collecting and remitting the taxes/duty due.  All carriers levy some sort of set of charges on top of the taxes and duties due.  Some of those charges are buried in the shipping charge.  Some of those charges are a lot more than C$9.95, particularly those levied by UPS for an item sent by UPS Standard to Canada.

I'm looking at the item you posted the link to.  I'm going to use US dollars initially to keep the math straight.  An item with a selling price of US$17.50 and charged 13% Ontario HST would incur tax charges (not import charges) of US$2.28.  Subtract that from the US$7.10 in total import charges that show up on the listing page today, and that leaves US$4.82.  That US$4.82 is for various customs clearance and processing fees, and probably includes a small fee for Pitney Bowes (operators of the GSP) pre-paying the taxes due on your behalf.

US$4.82 converts to about C$6.25 at today's mid-market exchange rate.  No matter how you slice that, that's better than what any other carrier can do for customs processing fees.

The shipping price shows up today as US$11.04, or about C$14.22 at today's mid-market exchange rate.  You'd know better than I would if that's a decent price for shipping that sort of item to Canada, so you be the judge.


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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

gifts from family members or friends who live abroad when the worth is CAN$60 or less.

If you are buying something, it is NOT a gift.

If your auntie in Manchester is selling you something, it is still NOT a gift.

If you are asking your seller to mark your purchase as a gift, you are asking her to lie to the CBSA. If she will lie for you, what makes you think she would not lie to you?

And of course, vice versa.

(And although you didn't ask, if you are a business, the Global Shipping Program is specifically NOT designed for your Business to Business (B2B) purchases.)

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

First, before you imply such, I am not an eBay "stooge" or whatever other "buzzword" hits your fancy.

Second, before you publicly out a company as a scam, you better have your facts straight.

Most Canadians that complain about GSP feel that because Canada Post has almost never charged them taxes/duties etc, that such a thing doesn't exist and anyone who says it does is a scam artist.

You just were lucky. You were small potatoes compared to other importers. You were the little fish that got away. It doesn't mean you will never be caught.

Third, chill out. No one has a gun to your head. You don't wanna buy using GSP, don't!

If you did and suddenly you see the "charges" that's what you get for not stopping to read the text on the page. It's all our responsibility to read what we agree to when we click. You could agree to anything if you are not careful! Read, Read and re read.

Rant over.
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

amcdc79
Community Member

When the GSP was first introduced, you may have been correct in calling it a scam. Since then, ebay has tweaked and adjusted the total cost to the buyers, making it a convenient money maker.

 

If you don't like it, buy Canadian. Are there any Canadian sellers offering the same item? If not, then find the cheapest seller using the GSP, don't forget to check their feedback also.

 

Good luck.

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.


@amcdc79 wrote:

When the GSP was first introduced, you may have been correct in calling it a scam.


Interesting statement.  How was it a scam then but not now?


@amcdc79 wrote:

Since then, ebay has tweaked and adjusted the total cost to the buyers, making it a convenient money maker.


This sounds lovely until one realizes there isn't a lot of substance behind this statement.  I'd love to read more elaboration on this point.

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.


@marnotom! wrote:

@amcdc79 wrote:

When the GSP was first introduced, you may have been correct in calling it a scam.


Interesting statement.  How was it a scam then but not now?


@amcdc79 wrote:

Since then, ebay has tweaked and adjusted the total cost to the buyers, making it a convenient money maker.


This sounds lovely until one realizes there isn't a lot of substance behind this statement.  I'd love to read more elaboration on this point.


Definition of scam

: a fraudulent or deceptive act or operation
 
When the GSP started(2012), it was charging as much as $25USD to ship a CD or a video game to Canada. At the time, US sellers could ship via first class mail, which included tracking for $5 or$6, the cost now is $9,50. Even with PB's cross border fee included, they were charging way more then the actual cost, can you say double, maybe even triple.
 
May I ask what it is called, when the consumer, is charged double or triple, the going rate for a product or service?
 
In the six years that the it has been around, the GSP shipping cost for small lightweight items has gone down, while the USPS rates have gone up. Now the GSP fees and shipping charges are more inline with the actual cost, and the added benefit of convenience for the seller, who may not sell international otherwise, is still built in.
 
I'm sure ebay gets a small cut on the fees as well, with the bulk going to PB. 
 
The GSP has always worked fine for expensive items such as cell phones,  $15-20 shipping w/tracking is a great deal, the fees were probably included in the import charges.
 
 
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

Those shipping fees for lightweight items were probably incorrect because the seller selected the imperial equivalent of that default category, 1-500g from the listing form instead of 78 g. I fell into that mistake once or twice as a new seller myself before I moved to Calculated Shipping in 2013.
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.


@amcdc79 wrote:

Definition of scam

: a fraudulent or deceptive act or operation
 
When the GSP started(2012), it was charging as much as $25USD to ship a CD or a video game to Canada. At the time, US sellers could ship via first class mail, which included tracking for $5 or$6, the cost now is $9,50. Even with PB's cross border fee included, they were charging way more then the actual cost, can you say double, maybe even triple.
 
May I ask what it is called, when the consumer, is charged double or triple, the going rate for a product or service?

I think the word you're looking for is "expensive".  

You haven't proven any intent by Pitney Bowes to deceive or defraud eBay users.  The GSP charges are right on the listing, after all.

I'm also wondering what you consider to be the "going rate" for shipping items from US to Canadian destinations.  I don't know of any carriers that can ship packages or documents weighing less than half a kilo for what Canada Post charges.  Does that mean that the US$38.29 base price for a 300 gram item sent by FedEx Standard (ground) to Canada is a rip-off, or that the postal system is cheap?

As far as the overall PB-levied charges for shipping a GSP item go, it probably costs little for the GSP to get an item across the border.  Most of the cost is likely the Expedited Parcel it travels as within Canada.

Also consider that some of that shipping charge is not the GSP's charge, but the seller's charge for getting the item to Kentucky.  And also consider that if the seller doesn't provide any information on the item's shipping size and weight, the GSP bot has to make a "guess" or apply a category average.  My hypothesis is that while there have been some adjustments to the costs involved in getting a GSP item shipped within Canada, there have also been some tweaks made to the algorithm for calculating the category average. 


@amcdc79 wrote:

In the six years that the it has been around, the GSP shipping cost for small lightweight items has gone down, while the USPS rates have gone up. Now the GSP fees and shipping charges are more inline with the actual cost, and the added benefit of convenience for the seller, who may not sell international otherwise, is still built in.

I addressed some of your points about the price drop already, but I do wonder what you mean by "actual cost".   I don't think any of us really know how much it actually costs to ship items by the GSP, and I would suggest to you that even Pitney Bowes has probably just made estimates on this based on what they've been able to negotiate with the carriers they deal with.  The more shipments they deal with over time and the larger the volume of GSP freight shipments to Canada, the lower the costs and the more accurate the estimates.


The GSP has always worked fine for expensive items such as cell phones,  $15-20 shipping w/tracking is a great deal, the fees were probably included in the import charges.

US$15 to $20 is a great deal for shipping pretty much any 300 gram or so item with tracking from the US to Canada.  It's just that it's not particularly cost effective for inexpensive items.  You've lost me on your point about the import charges, however.  The GSP's US$5.00 or so fees for customs processing, etc. are always included in the import charges unless the item has a declared value of less than C$20. 

There was a period when Pitney Bowes and/or eBay were experimenting with listing items with nothing under the import charges field and folding everything into the shipping charge, but that experiment seems to have ended.

Message 11 of 15
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

Since I am unfamiliar with how to break up a post to address each point, I will try to do it in the order of the post. Also, most of my post is referring to small lightweight items under 1 pound or 500 g.

 

Expensive is not the word, but scam is probably too harsh, so may I call it a rip-off. Even you have said in the past, that PB shipping and import charges are not transparent.  Buyers do not know, because they can't see, a breakdown on how much actual shipping, taxes and fees they are paying. Will the CRA accept our best guess when claiming ITC's?

 

Without that transparent breakdown, the intent to deceive, could be claimed, even though there  may not be any deception.

 

I already posted the "going rate" for first class international, which if I may point out(even with exchange) is cheaper than my cost to ship, to many parts of Canada. I only wish I could ship anywhere in Canada with tracking for less than $13CDN, like US sellers can. If Fedex charges that much, yes I would consider if a rip off,  just another reason not to use a courier across a border. Please don't get me started on their "brokerage fees", which is another rip off.

 

Any professional seller with volume, knows they do not pay the posted rates. You said it yourself, that PB uses freight rates to cross the border, which is cheaper than regular. Once in Canada, their volume gives them the commercial rates from CP, another discount not passed on to the buyer.

 

Most US sellers that send their items to PB, have free domestic shipping posted on their items, much like us, the cost is included in the price of the item. US sellers can ship with tracking for under $5 to all the lower states.

 

Regarding the question of lack of information when the item gets to PB, whose fault is it? Obviously the buyer knew what they were purchasing based on the sellers information. The listing when created, had to be put into a category. Since in your words, US sellers get hives when filling out custom forms, why is there not a requirement whereby, any or all information that PB needs to quickly process the item is included.

 

I could go on, but your defence of a program most Canadians despise with a passion, just seems strange.

 

I agree PB is a glorified Freight Forwarder, that has gotten better over the years. The fact that they open every package, and based on what I have seen, do a lousy job of repackaging, means anything fragile should not go through the GSP.  

 

Lastly, if anyone has been able to combine items through the GSP, I would like to hear their story regarding how it's done,

 

 

Message 12 of 15
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

Something to consider as regards to GSP "cost" is that there are many US Sellers (that's the primary area we are talking about) who do provide free shipping within the Continental US, so when you purchase an item that has GSP enabled, in theory there should only be charges for GSP shipping and tax renumeration.

The actual part of the delivery that PB handles is writing customs forms, putting everything on a commercial truck and hauling it across the border. It's only a 7-8 hour drive from the GSP Hub to Mississauga, so a semi truck can probably hold at least 1,000 - 2,000 eBay purchases depending on weight, volume, size etc.

Once the border crossing is complete, the packages are taken to the Canada Post Hub, where all the pre labeled packages are then sorted by CP and have the first scan in Canada.

As mentioned earlier a good portion of the cost will be the CPC label, but I am sure PB gets rates close or near what other large companies pay, so I woul not imagine a label would be more than say 8-9 dollars. That would be the high end of the scale.

Some of the cost will go towards PB expenses, like trucks, drivers, line workers etc. In a business model like this, it's feast or famine because only large volumes of business allow it to be profitable.

So for the case of say 1,000 eBay purchases going by PB, at a rate of $20 shipping per item of various sizes, you can estimate that:

Canada Post $8.00 Delivery ($8,000)
eBay Commission 2-5% ($1,000 max)
PBI Logistics $11.00 (Includes Duty/Tax)

These are just wild speculation based on current commercial rates and industry standards. This example based on a low value item under $50 with free shipping in the US.

eBay isn't really getting rich from GSP, we have not calculated the losses from problems etc.
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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.


@amcdc79 wrote:

Since I am unfamiliar with how to break up a post to address each point, I will try to do it in the order of the post. Also, most of my post is referring to small lightweight items under 1 pound or 500 g.

 


Using the desktop version of eBay, I can tap a "quote" button above the reply box which shows the entire quoted post.  I then just edit that quoted post down to what I need.

I can't pull this trick with my phone, however.


@amcdc79 wrote:

 


Expensive is not the word, but scam is probably too harsh, so may I call it a rip-off. Even you have said in the past, that PB shipping and import charges are not transparent.  Buyers do not know, because they can't see, a breakdown on how much actual shipping, taxes and fees they are paying. Will the CRA accept our best guess when claiming ITC's?


"Scam" is not only too harsh, but it doesn't fit the definition that you provided.  It's not deceptive, it's not fraudulent.  I'm not defending the program.  I'm defending the truth.  

The GSP "import charges" may not be transparent, but one can get a pretty good idea what goes into them by reading the terms and conditions page and the eBay help page attached to it.  Given that it costs less than what carriers such as UPS charge for customs processing, brokerage, or whatever else you want to call it, I don't think it's fair to call the "import charges" a scam or rip-off.

Are the shipping charges a rip-off?  If you compare them to letter mail (First Class International), sure, but the GSP isn't a letter mail service.  If you check out what USPS charges for shipping small items by parcel post (Priority International), then the GSP looks more comparable in terms of cost.

Besides, I think it's unfair to call something a "rip off" without knowing the costs involved.  Is the corner store down the street ripping you off when they sell you a 12-pack of Coke for $6.99 when the supermarket a fifteen minute walk away charges $3.99?  What if you knew that the supermarket is selling the Coke at a break-even proposition and the corner store is paying considerably more than what the supermarket is paying for the Coke?

Speaking of the terms and conditions, they state "Any GSP Item that you purchase must be for the personal use or consumption of the designated recipient and not for commercial resale purposes."  So your point about input tax credits is pretty well moot.

Besides, you're not paying the taxes (and duty) on a GSP shipment.  Pitney Bowes is.  The "import charges" are your way of repaying the taxes as well as the customs processing costs.


@amcdc79 wrote:

 

 

I already posted the "going rate" for first class international, which if I may point out(even with exchange) is cheaper than my cost to ship, to many parts of Canada. I only wish I could ship anywhere in Canada with tracking for less than $13CDN, like US sellers can. If Fedex charges that much, yes I would consider if a rip off,  just another reason not to use a courier across a border. Please don't get me started on their "brokerage fees", which is another rip off.

 

Any professional seller with volume, knows they do not pay the posted rates. You said it yourself, that PB uses freight rates to cross the border, which is cheaper than regular. Once in Canada, their volume gives them the commercial rates from CP, another discount not passed on to the buyer.


When you ship within Canada, you're often paying parcel post rates for items that can ship from other countries to Canada by letter post.  Parcel post is subject to stuff like fuel surtaxes and volumetric weight calculations.  That accounts for a lot of the difference in price you're seeing.

I do wonder how you're certain that the GSP isn't passing any shipping discounts onto the buyers who choose to use the program.  It doesn't seem to account for how I can get a phone forwarded to me via the GSP for less than half the base cost of a FedEx Standard shipment from the USA, which travels by both freight and parcel post.

 


@amcdc79 wrote:

 


Regarding the question of lack of information when the item gets to PB, whose fault is it? Obviously the buyer knew what they were purchasing based on the sellers information. The listing when created, had to be put into a category. Since in your words, US sellers get hives when filling out custom forms, why is there not a requirement whereby, any or all information that PB needs to quickly process the item is included.


It's not the lack of information "when" the item gets to Pitney Bowes, but the lack of information on the listing page.  There is a requirement that sellers provide information on the item's packaged size, country of origin, etc., in the "item specifics" section of the listing, but for some reason, in its wisdom, PB or eBay have put that requirement in the buyer terms and conditions.  I haven't found anything comparable on the .com site for sellers' reference.

If you haven't' scoured the .com site yet for official information on the GSP, I suggest you do so.  It's a real exercise in frustration.  It's mostly marketing puffery, with little "legalese" attached to it.


@amcdc79 wrote:

I could go on, but your defence of a program most Canadians despise with a passion, just seems strange.

Most people despise the Third Reich with a passion, but they don't regard historians who study it to be neo-Nazis or, in your words, "strange".

I'm not defending the program.  I've just tried to find out as much as I can about it and I've managed to use it to my advantage in three--count them, three--instances.  Why haven't I used it more?  Because it doesn't make sense for most of the other items I purchase online.

But I'm not going to get my Denver Hayes boxer briefs in a twist about it.

 

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Re: WHy is the Global Shipping Program even a thing?!? It's a scam.

Will the CRA accept our best guess when claiming ITC's?

The Global Shipping Program is specifically NOT designed for business to business use.

 

The fact that they open every package,

They don't.

It would be unbelievably expensive. KY 's minimum wage is $7.25 an hour (~$8.70 Cdn) or 14.5 cents Cdn per minute.

How many minutes do you think it takes to open, assess, and repackage a single shipment?

How many workers would it take to open, assess and repackage thousands of shipments every hour?

This is an urban legend that has taken deep roots.

The shipments that have been opened seem to be those that are not described, even to the minimal standard the US equivalent of a C22 label . 

I've made two purchases through the GSP and one was repacked. The box was marked as such, the problem was the place of manufacture was not given, and the new package was much much larger than the original (mentioned because some claim everything is repacked to be smaller.)

 

The GSP is a Seller Protection program designed to soothe the concerns of the xenophobic and paranoid US sellers.

It should be avoided for inexpensive items, and only used carefully after comparison with other similar products that don't use the GSP.

In the case of the item (a book about Firefly) that was repackaged, with GSP it was still the least expensive copy available on dotCOM dot CA and dotUK. 

 

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