Price gouging on shipping?

It's not pandemic related, but, what's the current policy on sellers pricing items fairly low but charging outrageous shipping?  I thought eBay was supposed to be cracking down on that in the past...?

An American seller is charging $30USD for an item, and $230 for shipping.  (From past experience, these items could ship for maybe $20-30.)   I looked up the article about shipping limits, and it's not in one of the categories with limits.  Also read the article on "price gouging" that explains how to report an item and that "price gouging" is supposed to be a reporting option.  So "report item" doesn't work in either Firefox or Chrome, and when I tried it on my phone, there was no option in the menus for "price gouging".  ...????

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Answers (18)

@3islanders   wrote:
Since the first time I saw the listing, the seller has now changed the price to $200 with shipping of $60... and it's *not* GSP! Shipping to 90210 is $30. An item that people in that particular hobby are still not going to buy because they know where to find it for less.
 
So now his price is inflated to all customers?
There is this really dumb idea that if a seller  runs out of something, that they should inflate the price to something incredible to keep customers interested.
Since the average customer is going to think "what the blinking blue blazes does this turnip nosed snot bucket think his carp are worth?" this seems a poor business practice to me.
 

I believe price gouging only relates to specific items like masks, sanitizers, etc. If the item you are watching is was one of those items and the seller raised the shipping price so much, they might be price gouging.  I would consider just reporting the listing then.

 

If it's not one of those items, it could be something else like a glitch or the seller just typed one wrong number when listing the item. Personally, I would just ignore it if it's not one of those items.

Hi everyone,

Due to the age of this thread, it has been closed to further replies. Please feel free to start a new thread if you wish to continue to discuss this topic.

Thank you for understanding.

Sometimes sellers just don't know how to set up calculated shipping and just add a high number to be sure they won't loose money.

 

Or

 

Sometimes the sellers just want international exposure without *having* to ship there. Why? More exposure means more views and/or watchers and more views/watchers increase their chance of having a better placement in search.

Since the GSP came up-- again.

The Global Shipping Program is a Seller Protection Program that is available to sellers in the USA and UK who are terrified of shipping outside their own countries.

Basically, once the shipment gets to the GSP plant in Erlanger KY, the seller's responsibility for the transaction ends.

 

The GSP is run for eBay by Pitney Bowes. Anyone who has worked in an office has probably seen their postage labels. The company has been around for about a century and has moved into freight forwarding.

 

EBay has a contract with PB to run the GSP. No one knows if eBay pays PB for their service or if PB pays eBay for the right to run the service.

 

PB pays Canada the applicable duty and SALES TAXES for the pallets of goods they ship into Canada. They also charge the buyer a service charge of ~$5US.

 

Canada charges duty and SALES TAXES on imports valued over $20Cdn (~$14US). PB collects these fees before the seller ships and pays them forward to Canada.

 

CBSA has decided that it is too expensive* to collect duty and SALES TAXES on low value /small items and ignores them when evaluating shipments in the mailstream. If they do charge duty and sales taxes , those fees are collected by Canada Post along with a service charge of $9.95.

Many people whose few out -of -Canada purchases have been low value and or physically small, may not realize that duty and sales taxes were actually due on their purchases. 

Items that are duty-free are still liable for SALES TAXES. Most of the import fees are actually sales taxes. There is sales tax on used goods, whether that is a sweater or a car.

 

You have the right to your own opinions, but not to your own facts.

 

 

 

 

*Customs agents earn between $50K and $80K annually plus benefits. It's a waste of their expensive time to assess and charge on items that cost only $20 or even $100, since not everything is dutiable.

um, this is called the Global Shipping Program (GSP) hahahaha

 

this effectively prices out items for many, if not most, Canadian buyers from American sellers who use this "service".

 

I will not buy from a US seller who uses it unless there is absolutely no other option.   Pitney Bowes got a sweetheart deal out of this acting as the middleman, and it serves them really well I bet.  I think it came about originally - other sellers who have been around longer probably know more - to placate American sellers who ages ago complained excessively about lost international packages and international buyer fraud (getting the item but saying you didn't to get a free item) because they didn't want to charge international customers tracking fees (or maybe they didn't exist to the same degree they did then, I dont know).  

 

I know losing Canadian customers doesn't matter too much to an American seller, but I dont think they or ebay truly knows how repulsive the GSP is from a Canadian buyers perspective.  GSP shipping prices from a Canadian perspective are absolutely ridiculous.  

 

Seeing sellers list that they use the GSP is code to many Canadian buyers including myself to look somewhere else or buy Canadian.  

 

 

My first thought was that the seller's fingers slipped and he punched in 230 instead of 30.

I've done that, and been very grateful when an amused buyer told me about it.

 

EBay's method of cracking down on shipping was to charge sellers 10% of their shipping charge when an item sells.

This almost stopped the $10 selling price/$90 shipping price on an item where the numbers should have been reversed.

Which is cheaper a $10 with $90 shipping?

A $90 item with $10 shipping?

A $100 item with Free Shipping?-- Because that is the most popular current way of hiding shipping costs.

 

You may find this useful:

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

Notice that USPS puts the most expensive services at the top of the list. (Canada Post starts with the cheapest and works up.)

If you want to play with this, I use 90210 as a memorable zipcode.

 

 

 

@3islanders 

 

If you attempt a reverse lookup, USA to Canada inside USPS, unfortunately the quicker more expensive options default to the top so that  is being used by the seller as their only method for shipping. You have to look down a long list of choices to find something that is somewhat affordable. I found a book seller the other day that had a few books I was interested in. The shipping for inside the USA was minimal/or free but to the moon when you change shipping to Canada. Example attached of another seller selling household items and one selling 45's.  Available list of shipping options is in the link. US sellers with extremely high shipping to Canada are very easy to find. The balance are using GSP which leaves very little choice for a Canadian buyer looking for reasonable shipping on low valued items.

 

https://postcalc.usps.com/Calculator/MailServices?country=10054&ccode=CA&oz=89406&omil=False&dz=T1Y3...

 

 

US Prices 2.JPG

 

US Prices.JPG

-Lotz

ceenare
Community Member

I've accidentally marked a 12 ounce item at 120 lbs.  Double check some mistake like this hasn't happened.  No wonder no one bought it.

In the good old days sellers did this to avoid final value fees, but eBay has long since addressed that.

 

Some sellers (often Chinese) will jack the price of an item up to ridiculous levels (like $900 for a $20 item) when they've run out, (to avoid listing fees or maintain search ranking perhaps?)  This might just be another version of that.

 

Ian

There's no option to report shipping price gouging under the "report items". I almost purchased leatherette car door handle covers for $20 and then realized they were charging $180 for shipping. I even asked if it was a typo or if it was listed in Yen or guan. They replied "no you have to pay $180 USD for shipping". The product only weighs about 4 ounces.
I bought the item from another vendor for the same price with free shipping. I guess eBay doesn't care ¯⁠\⁠_⁠(⁠ツ⁠)⁠_⁠/⁠¯ Just buyer beware I suppose.

The only action eBay ever took was over the $0.01 items with $200 shipping, which was basically sellers trying to avoid seller fees. This has since been rectified with fees on both the shipping and the main selling price.

 

Other then that I don't believe there is a policy. Examples given in some of these posts are either a broken eBay shipping calculator, arbitrary values the seller threw in, or a glitch in the bulk listing program they're using. E.g. 272528024461a $10 XLR to RCA cable from a seller that someone pointed out, using 90210 as a US postal code:

 

  • Economy Free
  • Expedited $8.48
  • Overnight $75.98
  • Canada $237.40
  • Guam $12.98
  • Tonga $252.45
  • Australia $254.10

Inspecting their store some prices are correct to Canada, while others are broken. With 9000 feedback, I'd assume it's not "price gouging" and hundreds of examples of this do exist. They're a high enough volume seller that they probably don't care to fix their international shipping issues on specific items. You're not likely to run into this issue on more unique items and if you do you can always request a shipping quote from the seller.

 

The GSP, to be clear, is the Global Shipping Program, run by Pitney Bowes. All they do is pre-calculate any import fees and duties and charge it up front. They then funnel all the packages to their main facility clear them and forward them for distribution to Canada. Their packages are shipped to them in the US typically by USPS and to destinations in Canada by Canada Post.

 

eBay has recently started charging sales tax in certain states that I've exported to (WA), not sure if they do it only when a Canadian seller sells to the states and if the GSP does it when a US seller exports to Canada, or if they now do the regional sales tax ABOVE the GSP fees.

 

Personally I avoid buying items that ship via GSP if I can, since I'd rather roll the dice with regular post and not get hit for any duties then pay 100% every time. When I was buying a lot I maybe got hit with the yellow CBSA duties sticker 1/20 (This was over 10 years ago things might have changed). Though I have been charged $1.50 duties on a $10 item PLUS a $10 CBSA handling fee.

 

Fedex and UPS are a whole different ballgame. $60 brokerage fees plus duties on a $100 item. Not sure if that is still the going rate but I haven't really touched them for years either.

 

Now on the opposite end of the spectrum, shipping rates ranging from $150-$250 are a thing, so eBay would have no way to police it. I've paid $215.55 to ship a package to South Korea, $196.87 to Australia, $102.51 to the USA, $151.17 to Russia, and $249.30 to Lithuania as a few examples. Typically these are because to certain destinations, if you want tracking, you MUST ship XpressPost, and most of these items had $1000 insurance on them. The built in eBay calculator will never include insurance which can be up to an extra $30-$40. Moving up to XpressPost for tracking to Lithuania doubled my listings shipping price, which I just ate for the sake of moving on. Obviously weights and sizes come into effect from these examples but it gives you an idea.

 

Insurance is mandatory from me for high value items as the seller is responsible for dealing with lost items in post. Canada Post lost an XpressPost shipment from Ottawa to Toronto but will only reimburse you for the insured value plus shipping cost. Value of sale was $140 plus shipping, reimbursement was $100 plus shipping. I waited for Canada Post to confirm the claim and then refunded the buyer. Your issue there would be if the package is found and delivered after you refund the buyer, you would no longer be able to claim the insurance, hence out the $140.

 

Kind of went off topic, but hope that helps explain.

I don't exactly know how it works but some US sellers have  a shipping quote on

their listing that is some kind of a guestimate from an Ebay service.  I just bought

an item from a US seller, but messaged him first and asked if he could get me the actual

postage as I believed his quote was way too high.  He was very obliging and took the package

to his nearby post office.  The item shipped with USPS International Rate with tracking for

$19.00  US.  The original quote on his listing was $36.00 US.????

I'm surprised they allowed your post. They deleted mine on the same topic. 

 

This one. If they spent as much effort improving things, as they did trying to muzzle their members, things would be much better.

 

I agree with you.

 

I almost fell into a serious trap, purchasing a Casio watch from a "top rated seller". The price for the watch was acceptable, and I nearly finalized the transaction, but fortunately, caught the outrageous shipping at the last moment. In this case, the seller was charging $302.90 for USPS Priority Mail shipping from Oakton Virginia.

 

It wasn't an inadvertent error. I reviewed 54 pages of this sellers store, and the vast majority of the listings, had shipping charges of hundreds and hundreds of dollars above any reasonable fees. To Canada that is. Not for US buyers. This creates a environment of financial peril for Canadian consumers.

 

Although eBay may not overtly counsel such behavior , they certainly have set an example and precedent, by subjecting Canadians to the sub standard service, and exorbitant rapes charged through the GSP program. And they reward behavior like the above mentioned crook, by pronouncing these shameless opportunists to be "top rated sellers". Maybe that title is how they reward sellers who are able to inspire Pitney Bowes into charging new premiums for the underwhelming service they foist upon us. I'm sure that PB and eBay are enrichening themselves, more than usually, as they reap the bounty of this pandemic, but when will enough be enough?

 

 

EBAY THEMSELVES IS THE BIGGEST OF ALL SHIPPING PRICE GOUGERS,EVER HAD TO PAY GLOBAL SHIPPING? WELL THATS EBAY AND THEY OWN GLOBAL SHIPPING,THE CENTER IN KENTUCKY CHARGES YOU TWICE THE SHIPPING COST! EBAY ARE SCAMMERS AND THEY REALLY DONT CARE.

I gave up trying to report listings like that. I have lost count how many items I have thought of buying only to discover that the seller is trying to charge horrendous amounts to ship something from the US.

From any of my own research on specific items from sellers in the USA, the exorbitant shipping prices is of those sellers using Global Shipping Program and those shipping prices to Canada are outrageous. I never purchase anything from a USA seller that cannot be shipped directly to me via USPS.


@3islanders wrote:

... American seller is charging $30USD for an item, and $230 for shipping.  (From past experience, these items could ship for maybe $20-30.)


What price are they charging to ship to the USA?