06-28-2013 09:35 PM
This "third party" Pitney Bowes is running a disgusting scam on eBay! How can customers make ebay aware that this is a fraud ? This third party does not represent official customs an does not give US or Canadian customs any money, they put it all in their pockets. By using fraudulously the term "custom fees", they are not only lying to ebay buyers, but also to official authorities who are not getting these extra "custom fees". Sellers! Why do you make business with these people? they are stealing money from you and from your customers! If ebay cannot or will not take action, this fraud issue will be taken directly to the federal governments of both countries to unveil the scam. Enough is enough!
09-27-2013 02:26 PM
The e-bay global shipping program is a total scam, especially in relation to their fraudulent claim that it "enables sellers to offer international shipping at competitive rates" The massive so called 'import charges' through Pitney and Bowes do not exist when shipping to Canada through the United States Postal Service (USPS) international mail. E-bay and their shipping partner 'Pitney and Bowes' make a big point on sellers listing pages "No additional import charges at delivery!" The problem with that in my case is I have used e-bay to buy thousands of comic books through USPS international mail over the years, and have never had additional import charges as there are none.
In the e-bay buyer terms and conditions it of course specifically states "Pitney Bowes's estimates may not always reflect actual costs to Pitney Bowes" and "You will not request, and you will not receive, a refund for the difference" This stipulation of course entitles Pitney and Bowes to over inflate shipping charges on a colossal scale as they can charge any amount they want for shipping, and further more add any other fees and charges they want to make up such as 'import charges' and then pocket all the profits. It is a great condition to have in a contract as it must add up to billions of dollars in profits over time.
I have just purchased a comic through the global shipping program for the first time. It is being sent from Detroit, MI to Toronto, Canada in a small envelope which through the USPS would only cost $10 shipping. With the global shipping program I have just paid the seller $4.00 to ship the book to Pitney Bowes + $10.66 to ship to Toronto + $13.69 Import charge = Total $28.35 almost 3x the shipping USPS charges, and that was just for a cheap item. The more expensive the item the more you pay.
Here is an example of a more expensive book – Fantastic Four #1 from two different sellers. The books are professionally graded and are shipped in an oversized flat rate box stuffed with bubble wrap to ensure the plastic case the book is in does not crack. Seller 1 ships via USPS international mail for $40.00 and Seller 2 ships with Pitney and Bowes for $440.00!!! That is 10x the cost of shipping USPS.
-Seller 1 = Fantastic Four #1 = $2898.88 US
shipping = $40.95
-Seller 2 = Fantastic Four #1 = $2499.99 US
shipping = $89.53 US + import fee $349.97 US = $439.50 !!!!!
How many sellers are unaware of this drastic difference and lose business to competition offering much, much lower prices through USPS international mail? There seems to be some very unfair business practices being facilitated and encouraged by e-bay in promoting this company. I know as a buyer with a choice of two of the same items, I would always purchase from the seller that charged $400 less for shipping through USPS. But of course with USPS e-bay does not make any profit, whereas with Pitney and Bowes they have "entered into an agreement with one another" which makes one wonder exactly how much kickback money e-bay collects from international buyers from this total rip-off of a program. It must be a better take than offered through a partnership with other services such as FedEx, UPS, or Purolator etc. or else some other courier company would have the contract. Perhaps all those other companies would only charge the actual shipping costs and therefore not be profitable for e-bay as this agreement is with Pitney and Bowes making up any charges they like.
09-27-2013 02:33 PM
" import fee $349.97 "
I do not know where you reside but in Ontario, it would cost $325 HST (plus Canada Post administration fee); in NS it would cost $375 HST (plus Canada Post administration fee)
The main difference with GSP in this case is that the tax (GST/HST/PST) are prepaid to PB (who remits them to CRA) instead of being collected at time of delivery.
09-27-2013 04:13 PM
As I see it, one drawback for Canadians is that we've become used to the rather lax collection of HST/GST on goods coming from the US. This has meant that with the GSP we're suddenly paying what is really owed in taxes, plus whatever fees and additional shipping charges Pitney-Bowes wants to tack on as middleman. Add to that the delay in shipping/handling for items going through a central hub, rather than the USPS/Canada Post route.
No wonder Canadians have been shocked, and have avoided the GSP like the plague. And no wonder US sellers are furious.
I've purchased fabric from the same (non-eBay) US supplier for several years. Recently they began using FedEx which operated essentially like GSP -- taxes and service fees included in the shipping. I began asking them to ship only via USPS, and they've done so to accommodate me, and I suspect other Canadian customers too.
I simply wish eBay/P-B would not make it so glaringly seductive and easy for US sellers to join, and so impossibly difficult for them to opt out on a casual basis.
It may not be a scam per se, but the modus operandi reminds me of the drug trade: many don't seem to have any idea what they're getting themselves into (except that they're told it will be good), and can't easily get out of the trap once they're in.
09-27-2013 05:15 PM - edited 09-27-2013 05:19 PM
Very Well Put Rose.................
I think someone called it "Scammy," and that's a better word than scam.
I'd feel guilty as heck running that racket and taking people's money in return for making their shopping experience less pleasant.
There are more satisfying ways to make money.
Comparing it to the drug trade is a bit extreme though.........
Someone compared the level of "scamminess" to the Drive Clean Program and I think that's a good comparison.
What blows me away is the way some sellers defend the program on the grounds that it works for some of the items some of the time, and even they admit that's a rare occurrence.
The GSP is just a small step removed from never working for anyone.................. but that would have been the kiss of death from the get go.
In other words: ............. The GSP has to work some of the time or it wouldn't have progressed as far has it has so what kind of defense is that?
09-27-2013 05:58 PM
If eBay had even one on staff person who actually knew something about International shipping (like me perhaps) and had them go over the GSP proposal from Pitney-Bowes then most of these issues would have never happened in the first place.
If they had hired me they would still have a GSP type arrangement but...
A - It would NOT be operated by Pitney-Bowes
B - There would have been an education program commensurate with the intelligence level (in a business sense) of the average eBay Seller (or Buyer).
These types of "all charges in" shipping arrangements work fantastically for many of the merchants who use them but none that I know of are run on "marketplaces", they work SO much better when you have a single merchant.
09-27-2013 06:03 PM
You are completely correct there is another entirely different catastrophe with this global shipping program, the whole implementation upon the US sellers. The seller I just purchased a book from"special572012" had no idea what the global shipping program was or that they were signed up for it. I asked the seller if they could ship USPS instead of with Pitney and Bowes as it was 1/3 the price for shipping. The seller told me no problem, that they always ship USPS anyways. Then later I was told that since I have the global shipping program they were unable to send me a new invoice.
I have never sold anything on e-bay, I only buy books here therefore I have no idea how listing anything works. But from the sounds of it I imagine sellers must consent to shipping options by checking boxes while listing items. Although it appears that sellers have no knowledge of what they are consenting to, or how difficult it is to change afterwards. I informed them it must be their choice as a seller as I have never had shipping through Pitney & Bowes only USPS international mail from all other sellers.
They contacted e-bay and were informed they automatically put you in that global shipping program unless you opt out of it. So they did that and then asked me to request a new invoice, which I did. After that e-bay sent me a payment reminder linking to the same invoice through the global shipping program and instead of changing the sellers shipping option to USPS international mail they totally removed all international shipping options so that I can no longer see the sellers listings in Canada on ebay.ca. They can now only be seen in the US on ebay.com and only ship to the US now.
I simply gave up at that point and paid the Pitney and Bowes invoice as the hassle I was putting the seller through and the back and forth e-mails and all the aggravation was no longer worth it.
Here is a link to the seller, currently states "ships to: United States" but I have now informed the seller so this may change.
http://www.ebay.com/sch/special572012/m.html?_nkw=&_armrs=1&_from=&_ipg=&_trksid=p3686
From now on I will only buy through sellers with USPS shipping
09-27-2013 06:25 PM - edited 09-27-2013 06:28 PM
recped............ is it you who uses the way US clothing companies pre-charge by way of comparison?
I'm not saying that you wouldn't do better than P-B............ ................ BUT..............
I went to one of those sites you mention and went through the checkout process and stopped short of the actual purchase so I could compare.
The way they do it is they have the same item cost for Americans and Canadians with shipping included, and the ONLY added cost to Canadians is tax plus duty.
Shipping is included/free for everyone and there are no brokerage fees.
For example........ a shirt which costs $50 to an American costs about $58 to a Canadian (depending on the province).
These are landed costs.
How can an eBay item possibly compete with that if taxes are collected prior to shipping?
09-27-2013 06:51 PM - edited 09-27-2013 06:54 PM
@1bluecharger wrote:-Seller 2 = Fantastic Four #1 = $2499.99 US
shipping = $89.53 US + import fee $349.97 US = $439.50 !!!!!
In BC, the import charges shown are 146.00, and 89.53 for shipping.
09-27-2013 07:29 PM
@chimera148 wrote:
@1bluecharger wrote:-Seller 2 = Fantastic Four #1 = $2499.99 US
shipping = $89.53 US + import fee $349.97 US = $439.50 !!!!!
In BC, the import charges shown are 146.00, and 89.53 for shipping.
That seller charges $50 for domestic US shipping which is included in the $89.53
The $349.97 "import charges"
Ontario HST would be $325, leaving $24.97 for "brokerage", more than the $12.95 Canada Post would charge but less than what UPS or FedEx would charge on a package of that value.
If the Seller shipped it direct the minimum charge for Exprees Mail (Flat-Rate envelope with insurance) would be $44.80 + 12.95 to Canada Post, that does not include ANY handling charge for the seller and is more than the net amount of the $39.53 Pitney Bowes is charging.
Now add another issue into the mix, USPS does not offer ANY service to Canada with Siganture confimation so to be protected (and I would want to be on a $2500 item) they would have to use UPS or FedEx which would be even more expensive.
The only way shipping direct would be a better deal than GSP if is the seller was willing to undervalue the customs declaration, no way will Canada Customs let a $2500 package through without taxes, in fact at US$2500 it would need a formal customs entry, the normal casual entry done for lower value shipments would not even be an option.
This is an item where it is actually cheaper via GSP than any direct method that would realistically be used.
09-27-2013 07:35 PM
@i*m-still-here wrote:recped............ is it you who uses the way US clothing companies pre-charge by way of comparison?
I'm not saying that you wouldn't do better than P-B............
................ BUT..............
I went to one of those sites you mention and went through the checkout process and stopped short of the actual purchase so I could compare.
The way they do it is they have the same item cost for Americans and Canadians with shipping included, and the ONLY added cost to Canadians is tax plus duty.
Shipping is included/free for everyone and there are no brokerage fees.
For example........ a shirt which costs $50 to an American costs about $58 to a Canadian (depending on the province).
These are landed costs.
How can an eBay item possibly compete with that if taxes are collected prior to shipping?
If you are refering to LL Bean, they subsidize Canadian orders as a marketing technique....Ssssh! don't let their US buyers find out!
$50 vs $58
HST in Ontario on $50 is $7.50 so they are tacking on a whopping 50 cents. With the volume of LL Bean it's hardly any more expensive for them to ship to Canada than to ship within the US, customs clearence fees are minimal for them, an entire truckload of orders can be cleared through Canada Customs at virtually the same cost as clearing an single individual package.
09-27-2013 07:42 PM
Yes, that's the one I checked out and so I assumed it's representative of the companies you've listed. I believe you've mentioned 3 or 4.
But there's one you'd never be able to compete with.
If the others operate like that then there's no comparison between the way they do thing and eBay items.
09-27-2013 08:23 PM - edited 09-27-2013 08:25 PM
recped........... I think your friend S_P_D already does a modified version of the GSP from Canada to the States............... so it can't be that difficult.
Right now I'm cleaning house and so my items are valued all over the board............. but it won't be long until most of my items are well over the $225 mark.............. the US tax-free limit.
Imagine using a P-B/GSP type service to the States?
I'm pretty sure my US buyers would go ballistic if they were treated like this and asked to pay GSP type taxes, shipping, brokerage, service etc. fees for items over $225..
09-27-2013 09:02 PM
@i*m-still-here wrote:recped........... I think your friend S_P_D already does a modified version of the GSP from Canada to the States............... so it can't be that difficult.
Right now I'm cleaning house and so my items are valued all over the board............. but it won't be long until most of my items are well over the $225 mark.............. the US tax-free limit.
Imagine using a P-B/GSP type service to the States?
I'm pretty sure my US buyers would go ballistic if they were treated like this and asked to pay GSP type taxes, shipping, brokerage, service etc. fees for items over $225..
$200, not $225, is the breakpoint for USA for duty free import.
09-27-2013 09:12 PM - edited 09-27-2013 09:12 PM
@pocomocomputing wrote:
@i*m-still-here wrote:recped........... I think your friend S_P_D already does a modified version of the GSP from Canada to the States............... so it can't be that difficult.
Right now I'm cleaning house and so my items are valued all over the board............. but it won't be long until most of my items are well over the $225 mark.............. the US tax-free limit.
Imagine using a P-B/GSP type service to the States?
I'm pretty sure my US buyers would go ballistic if they were treated like this and asked to pay GSP type taxes, shipping, brokerage, service etc. fees for items over $225..
$200, not $225, is the breakpoint for USA for duty free import.
Here is a reference link to USA CBP with information on purchases may by Internet and there is a specific section "Postal Services, Couriers and Freight" on receiving by mail.
http://www.cbp.gov/xp/cgov/trade/basic_trade/internet_purchases.xml
09-28-2013 06:35 AM
@i*m-still-here wrote:recped............ is it you who uses the way US clothing companies pre-charge by way of comparison?
I'm not saying that you wouldn't do better than P-B............
................ BUT..............
I went to one of those sites you mention and went through the checkout process and stopped short of the actual purchase so I could compare.
The way they do it is they have the same item cost for Americans and Canadians with shipping included, and the ONLY added cost to Canadians is tax plus duty.
Shipping is included/free for everyone and there are no brokerage fees.
For example........ a shirt which costs $50 to an American costs about $58 to a Canadian (depending on the province).
These are landed costs.
How can an eBay item possibly compete with that if taxes are collected prior to shipping?
That shirt may have been made in the U.S. so they wouldn't have charged duty. On a $69 pair of shoes they charged $4.11 tax and $13.11 duty to Alberta. Unless an item has been made in a NAFTA country,they charge 19% duty on all goods although many of their items have a duty rate below that (some are 5% and 12%). Then you pay tax on the item and the duty. There is a blurb about refunding tax and duty but I'm not clear if they mean they refund overpayments or if they just refund it when you return an item. If they don't refund overpayments of duty then 19% does seem high but the free shipping sort of makes up for that.
When I've dealt with some other online stores like Neiman Marcus or Coach. com, I've found that the shipping, tax and duty often add about 20-25% to the cost of the merchandise. Depending on the shipping cost, I have seen some GSP items comparable to that but there are definitely many that are higher.
09-28-2013 06:40 AM
@recped wrote:If eBay had even one on staff person who actually knew something about International shipping (like me perhaps) and had them go over the GSP proposal from Pitney-Bowes then most of these issues would have never happened in the first place.
If they had hired me they would still have a GSP type arrangement but...
A - It would NOT be operated by Pitney-Bowes
B - There would have been an education program commensurate with the intelligence level (in a business sense) of the average eBay Seller (or Buyer).
These types of "all charges in" shipping arrangements work fantastically for many of the merchants who use them but none that I know of are run on "marketplaces", they work SO much better when you have a single merchant.
I'm sure that you would do much better at setting up a similar system but why would you want to do that sort of system at all rather than leave it as it was before?
09-28-2013 07:27 AM
@pocomocomputing wrote:$200, not $225, is the breakpoint for USA for duty free import.
OK, but to me it appears as if the US never collects on eBay type items. Canada is lenient, but I think the US may waive that law altogether.
My American friends tell me they have never been asked to pay.
So imagine if P-B installed the program on .ca and pushed it into listings without the seller's approval the way they've done on .com.
If suddenly Americans had to pay the way we are asked to on GSP items over $200 then it would hit home.
The program would be shut down as quick as a click.
09-28-2013 07:40 AM
@i*m-still-here wrote:Very Well Put Rose.................
I think someone called it "Scammy," and that's a better word than scam.
I'd feel guilty as heck running that racket and taking people's money in return for making their shopping experience less pleasant.
There are more satisfying ways to make money.
Comparing it to the drug trade is a bit extreme though.........
Someone compared the level of "scamminess" to the Drive Clean Program and I think that's a good comparison.
What blows me away is the way some sellers defend the program on the grounds that it works for some of the items some of the time, and even they admit that's a rare occurrence.
The GSP is just a small step removed from never working for anyone.................. but that would have been the kiss of death from the get go.
In other words: ............. The GSP has to work some of the time or it wouldn't have progressed as far has it has so what kind of defense is that?
What really blows me away is when people only focus on the negative. I haven't seen anyone here say that the program is great or even all that good but we're stuck with it for now. So which is more useful....complaining about it and saying it is ALL bad or trying to make the best of a situation by looking for a way to benefit or at least meet the status quo?
We have the opportunity to make comments and suggestions on the thread that Kalvin started. Perhaps nothing will come of it but maybe they will implement something that we suggest so that it is a better program. Those who dislike the program can probably make some really good suggestions to some of the questions that he asked...
09-28-2013 08:07 AM
PJ.......... I'm sorry because I don't want to be contentious.............. but the program should be trashed altogether.
You say that the program works for some items some of the time but that is no reason to salvage the program, and as long as you defend it, you give them a foot in the door.
(Well, not really....... just conceptually.........It's all just talk anyway and no one cares what we think anyway. It's just talk.)
For my type of buying there is no place for a GSP-type program, but I'm not saying that such a program would not work for some buyers and sellers.
Those items are just on my radar so that means nothing to me.
As a buyer, it's not something I should have to deal with everyday because it works for some guy buying a computer or a pair of shoes.
The program should be trashed. If they want a GSP type program better to start from scratch.
09-28-2013 10:03 AM - edited 09-28-2013 10:04 AM
Judging by the negative response the GSP has received, it seems to me, generally speaking, that neither Canadians nor Americans (those who understand what's going on behind the GSP), like it, and most revile it. I can imagine it may benefit a minority of Canadian and overseas purchasers of high-value goods, but for the majority of ordinary buyers and sellers it's the kiss of death.
Why keep a programme that was ill-conceived to begin with? Well, judging by the propagandizing done by eBay to US sellers, it's to protect sellers' reputations and ratings. In reality, it's likely to protect Pitney-Bowes' middleman status so they can continue collecting all the dough.
Since Pitney-Bowes is in bed with eBay, the latter has a vested interest in promoting the programme, and I wouldn't be surprised if they were getting some sort of commission, however small, for providing P-B with a platform upon which to make money. The right hand washing the left, etc. Canadian Border Services/CRA won't complain -- it's a win (one might even say windfall) for them.
I think the complaints and criticisms of the GSP are not only valid but valuable. Had US sellers not complained (on the discussion boards for example), would Canadian buyers have understood so quickly what was going on? If Canadians don't point out the drawbacks to US sellers (like the poster above who tried to get her seller to opt out), would those US sellers even know what was happening at the buyer's end? From what I've read, many US sellers are shocked to find out what their Cdn buyers are actually being charged.
To be clear, my view is that the GSP programme is a dud, but my primary criticism of it is the disingenuous way it's been force-fed down the throats of unwitting US sellers under the pretense of assisting them in their selling endeavours. The propaganda is pure horse poop. If it were a truly beneficial programme for sellers and buyers alike, eBay would have offered it as an completely open-ended option to sellers, and if it worked, they'd come back again and again. You don't have to over-sell something that works well.
Imagine if the tables were reversed, and the GSP were effectively to be imposed upon Canadian sellers (which it never will be, but this is a thought experiment). How soon would there be a hue and cry from Canadian sellers losing most of their US buyers because costs at the buyers' end had suddenly skyrocketed on most moderately-priced merchandise? I believe it's only because most US sellers don't primarily ship to buyers outside their borders that the GSP has survived even this long. In this sense, P-B probably understood that it had a captive, "safe" market to try out it's scheme. Seen from that perspective, it's brilliant for P-B as long as they can keep people quiet and opted-in.