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Hi, Thought I’d share something I learned this morning. I had a heavy radio (Proton 300) for sale in my store that was very expensive for shipping overseas. The package was estimated to be 25 lbs. and measure 20 x 14 x 12. I had my normal shipping option for large items set to USPS Priority Mail International, which used to be the cheapest option. A buyer queried whether I could reduce the $157 shipping cost to the UK.
I recall seeing that UPS had become more competitive but hadn’t taken the time the check it out yet. I checked out the shipping calculator and UPS Worldwide Expedited was only $111. I added this to a new shipping policy and to this item and the buyer purchased immediately.
So, if you are shipping direct, rather than using eBay shipping, you should really check out UPS for your international shipping.
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I did some more checking. Looks like UPS is cheaper starting at around 4 lbs. Even for a small 10x8x6 package there is a savings for your buyer of about 17% ($45 vs. $54). I tried several combinations of size and weight and it goes back and forth as to which is cheaper depending on the combination. I just added UPS along with the USPS option I was already using. Hopefully lead to more international sales.
This savings is even greater for shipments going to Australia ($54 vs $72 for a 4lb. 10x8x6), which for me is my second largest location after Europe.
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I did a quick check, and it appears customs duty and VAT aren’t included in UPS Worldwide Expedited. Total for a UK buyer is 20% VAT, 2.5% customs duty, and a further £8 for the privilege of having Royal Mail remit the fees to HMRC. The fees are calculated on the total, including postage and insurance.
So a $111 shipping cost has an extra $25 added on by His Majesty’s Revenue and Customs.
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Hi Antique Frog, that isn’t any different than what it would be for USPS is it? eBay usually collects the VAT regardless of the shipping service in my experience. What is different about UPS?
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Ha, think I’m wrong…
UPS say “UPS Worldwide Expedited offers customs-cleared, day-definite delivery to more than 220 countries and territories in two to five business days. ”
This site (PacLink) referring to UPS expedited, seems to suggest that the customs duty isn’t included.
UPS own site, regarding shipping from UK to EU, is a horror (“You also need to apply for an Economic Operator Registration and Identification Number”)
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Looks like UPS is cheaper starting at around 4 lbs.
That’s good to know. I am normally reluctant to ship items over 4 lbs foreign for fear of having to refund that much for shipping out of pocket for an INAD return, which is a big hit for me as a small seller even if I simply refund and let them keep it. Not to mention paying eBay’s commission as a percentage on the shipping, too, which will be a bigger hit for a high shipping charge. But if I thought about it there are some of my heavy items that are probably worth the risk.
If you’ve got exactly 4 lbs or less, PirateShip’s Simple Export Rate is still cheaper than any other way at $34.99 for most countries, including UK and Australia. Down at 8 oz or less, my challenge coins go to most countries for $10.99 by Simple Export.
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I have sent two (more than 4 pound) items using “UPS Standard to Canada”, which is very reasonable compared to USPS. This service requires the buyer to pay a brokerage fee along with any import fees & taxes when they go to pick up their package. The last time I shipped using this service I made sure that the buyer knew.
Other UPS services include import fees. I don’t know all the differences and if it is just this one method to Canada that is unique. Just make sure that you understand whether the buyer will have any additional fees in order to receive their package.
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I suppose the problem with all this is that the regulations are designed for companies sending large volumes of identical product. For example, the UK government doesn’t charge import duty or VAT on “miscellaneous documents and related articles” unless they have advertising space covering more than 25% of the surface. [cue scene of customs inspector with ruler and calculator thumbing through pile of vintage magazines]
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@Sharyn – Thanks for mentioning this. I called UPS to try and get more information but they weren’t much help. He confirmed that there “might be” brokerage fees that are charged to the recipient but couldn’t tell me if there actually would be, or what the cost would be. He did say that if the user pre-paid VAT, the customs and brokerage fees are possibly included. Guess I’ll put a call into eBay. I got the impression that the brokerage fee may just be part of the customs costs, a fee paid to the contractor that processes the package through customs.
Buyers are funny sometimes. This buyer reached out to me before purchasing to ask if I could lower the shipping and I told him I added the cheaper UPS cost and he should just choose that at checkout. He then proceeded to purchase with the original shipping cost. ??? I contacted him again and he didn’t see my note. I’m shipping UPS anyway and will refund him the difference.
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I’ve been informed, but I haven’t checked, that a DAB radio signal degrades the sound, so if you like listening to classical music, FM is still the better choice. So this UK buyer’s probably listening to BBC Radio 3. Or Radio2Funky. That radio station played 24 hours of doomer jazz when the Queen died.
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