New Corporate eBay Scam

[highoeyazmuhudee]

ok not a "scam" per se, but a new operating procedure by EBAY you NEED to watch out for. BUYERS BEWARE

 

so ebay has decided to get into the business of logistics, partnering up with Pitney Bowes, they have watched as fedex and UPS collect abhorrent fees for just signing off on a bunch of papers saying this item is taxable. These companies collect taxes on behalf of your government for importing an item. I have come to terms with taxation as I use their roads and health care, but they also collect brokerage fees for being the person who does the collecting. These brokerage fees are outside of the delivery service charge that you pay for when you pay for shipping and its shocking to receive an item and have to pay (in personal experiences) up to 65% of the declared item value. This means if you buy an item for $100 and shipping at $30, once UPS delivers it they will collect an additional 65% of the value at the door or hold your package hostage for a week before sending it back, i am unsure if when they send it back if the seller has to pay a penalty to have it returned but imagine this would be good business to do so. anyways your $100 item +$30 for shipping and $65 in additional fees (up to 35% in taxes) have made your $100 item almost $200. Often government shipping services such as USPS or Canada post overlook taxes on imported goods when using their delivery services and if you are to pay duty there is no brokerage fee added.

 

Ebay and brokerage FEES

 

Ebay likes this business model and calls it their "GLOBAL SHIPPING PROGRAM" they promise american sellers the ability to streamline their shipping needs with efficiency and convenience. What they dont tell sellers is that it inflates the price of their items they are trying to sell on ebay. I have contacted several sellers requesting a quote shipping by USPS (support your federal programs) and they dont understand why, even after i try to explain how much shipping costs they are unaware that there are fees being added, as it does not show up on their end. It is only after i describe these fees as an "ebay tax" to the buyer for using their global shipping program do they seem to understand. So this is creating confusion and causing sellers to actually be at a disadvantage when competing with other international sellers as UK sellers, Asian sellers, and virtually everywhere else besides the U.S ebay does not offer this ebay shipping service.

 

 

To make matters WORSE

 

they state: "No additional import charges at delivery!"

meaning if picked up at the border and carried to your door by fedex or UPS ebay has already calculated the costs and cleared the brokerage for you.

 

However

 

in ebays own terms and conditions for using the global shipping program (not that you have a selectable choice)

it states:

 

 

http://pages.ebay.ca/shipping/globalshipping/buyer-tnc.html#programfees SECTION ( 3i )

 

I have read stories of buyers being dinged by customs twice and this fine print (above) being cited as a cover all.

I am not sure how they can operate like this , their legal team must be brilliant in order to side step impending class action lawsuits.

 

MORE CONFUSION

 

Some sellers listings (unbeknownst to the seller) that use the GSP program dont have a total calculated for the import amount, they instead say "US $0.00 (amount confirmed at checkout)" meaning you will have to commit to buy an item through ebay only to be surprised at checkout by the amount ebay feels like taking. Im sure there is some formula they use to figure out the amount based on the sale amount, but with a "buy it now" sale it seems like they could calculate it. Ebay could ask for $100 at check out in import fees and you would have to pay or risk, 1. negative feedback 2. account being closed and 3. if ebay wanted they could pursue you for the amount (according to the their ToS)

this import charge also makes calculating how much you will bid on a running auction even more difficult as the amount they charge is based on the final sale price and you will have to factor that in as a tarriff to an item that climbs higher in price in the closing minutes of sale. It also comes down to what the item is, the import fees could be higher than you thought at checkout because of the item being luxury vs utility and you will have no way of knowing until you get the surprise of your life when you go to pay for it and ebay wants an extra $300 for an item you just bid and won for $1000 +$30 shipping.

 

 

THIS SEEMS LIKE A BAD JOKE

 

if all this isnt bad enough, it seems they also have no respect for the NAFTA agreement between nations. NAFTA is the north american free trade agreement, meaning items MADE 100% in the U.S CANADA or MEXICO (north america) do not pay duty on import between these three nations. Ebay does not understand what that is or has some clause where it does not apply to them because several items i was considering purchasing said 100% made in the U.S and still carried a full import tax.

 

MORAL OF THE STORY

 

you could find an alternative to ebay, but i think weve become so comfortable and casual with ebay that its harder to break from the habit of using this service than you think.

 

in the short term this GSP service is fairly recent and only now seems to be getting more common popping up on every third listing as ebay has probably promoted the sh*t out of it, attracting sellers with ease and convenience.

 

JUST SAY NO, use your federal USPS, and be aware that this GSP program is deterring more bidders that may contribute to a bigger pay day on your listed item because the buyer does not want to pay ebay for the privilege of them handling the goods. if your listed item goes unsold it could be because of this.

 

im not sure why ebay would make it hard for people to sell to one another this way, and be sly about not informing sellers that their buyers will pay higher fees and it could hinder a sale. Or why they are waiving accountability for double dipping customs fees when they advertise that you wont pay twice.

 

important questions that dont have answers, have they become so desperate to compete with amazon, is it a cash grab against a nation not in a recession?

 

I am hoping at least one member here who might sell on ebay reads and understands this so they are aware not to use that program as it doesnt benefit them or the buyer, only ebays pockets, if ive succeeded in doing this it was worth it.

 

how will ebay generate more revenue next? expand their shipping program to the EU? flat out buyers premium on top of sale price? could be...

 

if anyone has anything to add that i may have overlooked or am incorrect about (as i do not know the full story here from the U.S selling side)

please add it:

 

ERROS AND OMISSIONS

[SSTEEL]

Thanks for the heads up mate.  Unsure if this is US only related, or Global though.

[concepta]

Yes I have encountered this myself when dealing with US sellers! It's ridiculous!!

Sent from my iPhone using Tapatalk 2

[sgtguk]

Been looking at a speaker package from a US seller on ebay.com.au it comes with the GSP as the default shipper/handler, not sure about US/EU etc but we only pay duty on items over $1000 so no costs calculated for the package just a cheaper shipping cost afaik   

 

All this is tax grabbing by the big boys, Ebay etc will eventually fuck up everyone's bargains that they used to get, with governments tax grabbing too it's only a matter of time

 

Amazon already do this if you buy a more expensive item from them to ship here, checkout calculates customs duty before you pay for it, depending of course on where your shipping to    

[highoeyazmuhudee]

Another practice that rubs me the wrong way are U.S sellers charging a flat tax (5% and up) on international buyers. I would think something like that would never be accepted in a country who owes much of its founding ideology and constitution to "no taxation without representation" (the Boston tea party rebellion against the British for taxation with no representation and eventually the American revolution)

 

my government reaps no benefits of this 5% taxation

 

call it pay back, against the common wealth i guess ?

[ceocorona]

Its all about the Benjamin's.... 

[fraggle42]

I've seen this a few times in US international auctions / buy it nows.

The easy thing to do is message the seller and say you want to buy it, let them know eBay are trying to rip them and you off, and how much to buy & postage outside of eBay?

This has worked loads and loads of times. I've never ever had anyone say "Oh, but that's evading eBay fees!" - everyone is sick of eBay and their fees.

Lots of business sellers put their website in their auctions so again I just go to their website, if the price is dearer on their website just email / phone them and say you want to buy XYZ for the price they're selling it for on eBay, again, everyone I've done this with has been happy to do so.

I do buy loads of stuff through eBay properly, but only if its a straight forward auction with no rip off hidden fees like this.

Sent from my iPad using Tapatalk 2

[If you see Kay]

It doesn't happen to all US sellers shipping to international.  I've purchased from US sellers and had it shipped to Canada without that bs global shipping..

 

In fact, if I see that global shipping fee, I just bypass the auction altogether and go to the next one without it.  I hope the sellers know this. They are losing potential sales this way.