[78-L] eBay, Global Shipping Program pitfalls, Insurance

[Benno Häupl]

I would like to clarify a few things about eBay and their infamous Global Shipping Program. 

-  First I want to explain how the world postal system works. 
-  Then I will show how you can opt out of GSP and I will go into detail about the flaws of eBay’s    
   Global Shipping Program. 
-  My personal solution to avoid GSP as an overseas buyer
-  Lastly I will give hints on inexpensive (non-USPS) insurance when shipping from the USA. 
-  Bonus info: why eBay may not show your items AT ALL – although you paid for their services! 


First of all, we must know that the global postal logistics system is divided into 3 parts: 
-	Letter mail (called First Class Int’l by USPS) up to 4 lbs (USA) or 2kg (4.4.lbs) from other countries. Maximum length of all 3 sides L*W*H  90cm = 36 inches. Remember, a wooden box can be shipped at the low ‘‘letter’’ rate! 
-	Parcel mail (anything over 4 lbs from USA or 2.kg from other countries) 
-	Courier Service EMS (called Express Mail International by USPS) 

This is regulated by the Universal Postal Union in Bern, Switzerland, to which all postal services 
on earth adhere and where these things are decided in their annual Conference. 

All other carriers are not postal administrations, but private courier services (UPS, TNT, DHL, FedEx
) 
So, Pitney-Bowes, who run eBay’s Global Shipping Program (GSP) are a courier service.  
For customs administrations courier services are business-to-business carriers (B2B), therefore 
ALL their shipments will be checked for customs duties. 
If you use USPS FCI (or even USPS Priority Mail when in excess of 4 lbs), and hand write the 
address on the package, you make the parcel look like a gift from auntie to her nephew and the 
thing will not be taxed, especially if you declare a low customs value (like $20).  Do not mark as 
‘’gift’’, because this makes the shipment suspicious. And low customs declaration is the best 
security measure against theft. 

Let me show you how you can opt out of GSP (a method well hidden by eBay): 

My eBay>Account>Site Preferences>Shipping Preferences>Offer the Global Shipping Program
 
There is a new Opt Out button & a "Use the Global Shipping Program automatically when I list item" check box. 
If you don't want to opt out entirely, uncheck the box if you want to decide on a listing by listing basis.


GSP pitfalls for buyers. 
 
1) Shipping cost is double or triple, because GSP is a courier service 
2) GSP shipping costs are published nowhere (except on eBay item page) and thus GSP help themselves
3) Buyer pays import duties and import sales taxes plus a brokerage fee
     upfront - even in cases when no duties or VAT are legally due in the
    destination country. 
4) Duties and taxes once paid to GSP are non-refundable - even in cases when 
    they are not legally due or when the item is returned 
5) Combined shipping is not possible. A buyer was to pay $450 shipping for 
    13 books! 
6) The GSP shipments are not insured  
7) Some envelopes and packages sent via GSP will be opened by Homeland 
    Security - with carpet cutters. Many damaged collectibles and antiques were 
   reported. No possibility to complain. 
8) There is no customer service for GSP problems - neither for sellers nor for 
    buyers
9) “Returns from international buyers are not handled through the Global 
    Shipping Program at this time”.    So, solve your probems yourselves! 
10) In order to save on volume and weight in overseas containers, GSP may 
   repackage the shipments if "the package is too large for the commodity’’ or 
   when the package it too heavy, then it will be ’’repackaged into 2 or more 
   parcels’’.  Parts of shipments were reported lost, others were missing protective 
   cushoning, resulting in damages (but there is nobody to complain with!)  
11) As GSP collects duties, taxes and a brokerage fee ahead of time when they 
   are not even due yet, these will not be reimbursed in case of loss or damage to 
   the item. 
12) Businesses buying via GSP will not get an invoice for duties, taxes and 
   brokerage fee that will be formally tax deductable. (Last time it took eBay 
  Germany three years to provide tax deductable invoices for eBay fees! Three years!) 
13) Although GSP claims on the item pages that there will be no extra duties, 
   taxes or fees to be paid on arrival, many cases were reported by buyer who had 
   to pay extra on arrival. In fact, there is a clause in the User Agreement saying 
   that they are not liable if they undervalued the shipment.   
14)  Items advertised internationally with shipping via GSP are not allowed to be 
   mailed by any other service, says the User Agreement. 
15) Although there is no Customer Service for GSP, and no system set up for a 
   loss claim, eBay states that the buyer will only be refunded the national shipping 
   costs. The overseas portion and all other duties/tax/brokerage fee stay with GSP!  
16) Undeliverable items (e.g. during vacation) cannot be refunded at all and will 
   neither be  returned to the seller.  Post Offices in many countries, in contrast,  will 
   keep overseas shipments for 6 weeks.   

All this jeopardizes the seller's feedback and star ratings! 


My solution to avoid GSP as an overseas buyer: 
I am now using the services of a re-shipper in California. 
I have a US street address in 90250 Hawthorne, CA  and get many records by media mail. 
My mail forwarder keeps the shipments in storage until I decide what I want him to do.  
I can select: 
- forward the parcel as received 
- open parcel and keep only the “item in its marketing packaging” (i.e. the protective cardboard or so), 
  which I always choose for the records. Discard all paperwork (invoices) 

Then I have the re-shipper consolidate 10 or more such items into one larger parcel. 
Most important of all:  I can fill out my own customs declaration online!  

In the first month I already saved more than $900 on shipping costs and customs duties that 
the Global Shipping Program would have taken. That was for 14 items only!  
If interested, I use shipito.com, because they are the least expensive- but there are many more. 
They ship packages under 4 lbs even cheaper than by USPS First Class!  
Make a google search for ‘’mail forwarding’’ to find similar services. 


Now on to insurance. 
Although USPS FCI cannot be insured, you can use a third-party insurer. 
Check out U-Pic and Shipsurance.  They will insure for about a $1.oo premium for 
every $100 of value – REGARDLESS OF VALUE DECLARED on the customs form! 

Better yet – “self insure”! 
No need to feed insurance companies. 
If you add an extra dollar to your buyer’s invoice for the shipping costs, put this dollar 
aside in a cookie jar and pay out any claims from there.  If an insurance company can 
make a profit with a $1.oo premium on $100 value, you can, too.  At the end of the year 
take the money left over and invite your loved one to a fine dinner. 

That’s all. 

Except that I still have a goodie for y’all.  This is an official eBay announcement about the new 
User Agreement that we all had to accept:  

“To further create a marketplace where buyers find what they want and drive positive 
user experience, we updated the provision regarding listing conditions to recognize that the 
appearance and placement of listings in search and browse results will depend on a variety 
of factors. So, in some situations A LISTING MAY NOT APPEAR IN SOME SEARCH 
AND BROWSE RESULTS.” 
(Emphasis by me) 


Benno