Tuesday, January 31, 2006

Brokerage Fees a Nuisance

A recent column on my trials and tribulations in dealing with cross-border shipping of eBay purchases touched off a flurry of e-mails from readers who wanted to commiserate and to offer suggestions that might help to alleviate some of the nasty and costly surprises that accompanied parcel deliveries.

From a reader who prefers to remain anonymous and who notes that his mother specifically passed along the column: “FedEx and UPS: now you know why jokers online refer to such firms as Fed Ups.”“In my experience on eBay for several years now, before you bid, email the seller to ask if they are willing to ship USPS aka United States Postal Service to Canada (even though it'll be slower and you might not get insurance). This means the seller will have to stand in line and fill in a customs form. When the item arrives for you in Vancouver, one of two things will happen: either it'll arrive A-OK, no fees, nothing extra, or you'll have to pay a customs fee at your local post office when you pick up your parcel.

“If you have to pay then fill in the back of the customs form that is on your parcel, mail it off to Customs Canada and (apply to) get your money back. I consider this a regular part of doing business with anyone in the USA. I have always gotten my money back if it was mailed USPS, but then again I don't have to do it very often.”

Surrey reader Ursula McNeice suggests I have my American eBay purchases shipped to one of the specialty outlets on the Washington side of the border. “In the future you could just have your parcels shipped to Hagen's in Blaine. It is a part of their business to receive UPS shipments and they will phone you when the parcel has arrived.”

“They charge only U.S. $3.00 for this service. They are located two minutes from the border. You can register your name with Hagen's so they have your phone number on file when something for you arrives. You should suggest that the company you buy from print your phone number on top of the parcel.

“I (also) have a P.O. Box in Ferndale Wa. that I have been using on a regular basis for many years now. As you stated, a lot of U.S. companies will only ship UPS and therefore a P.O. Box cannot be used since UPS cannot ship to a P.O. Box. I had items shipped from Europe via UPS so can relate to your experience with fees.”

Another local reader, Vic Jaeggle, also swears that the secret to buying on eBay is to always have your items shipped via US mail. “When delivered to Canada the maximum the Post Office will charge for customs is $5.00 plus applicable taxes. I cannot remember the cutoff point but they do not charge anything for articles worth less then $15 in Canadian funds. UPS charges based on the value of the article being shipped. I have had articles that were too large for the Post Office sent to me via UPS or FedEx but I knew I would be nailed with the higher cost and was prepared to live with it.”

Andrew McCracken from Vancouver reports that he has read similar discussions on a kayaking forum about the use of DHL to ship folding kayaks from South Carolina to Canada. “Again,” he notes, “there is the issue of mysterious brokerage fees, as well as the problem of having to pick up your shipment at the airport if they do not find you at home.”

According to McCracken, one contributor researched the issue and summarized it as follows: “As I figure (it), after looking at all those numbers again, the major benefit of DHL or UPS is not speed, but tracking. UPS Ground costs the same or slightly less than trackable USPS Air (but considering hidden taxes, USPS still could bring some savings). “But when you are willing to give up the tracking option, then USPS Air easily beats UPS or DHL - with lower shipping cost, only a CDN $5 ‘hidden charge’, and about the same delivery time as UPS Ground. USPS insurance, I believe, works, but... this is big government organization, don't expect to get money soon. A few weeks or months before filing the claim (to make sure it's been lost), then a few weeks or months for processing. Otherwise, USPS Air isn't bad. I've bought more sports goods from the USA than locally and never had any USPS parcel lost. “As I recall now, even if I asked for trackable USPS, I received it usually by non-trackable USPS, and the seller was saying that trackable USPS would've cost much more, which was probably true. Companies prefer trackable shipments, so this could be the main reason for them to use UPS or DHL. “In deference to UPS, they have hold-at-destination option, where the shipment is held at their office until you pick it up, so you won't have to wait at home for delivery (this option is either free, or very cheap).

Another reader notes that when she purchases products via the Internet she has them sent to Security Mail, 250 H Street, Blaine Washington 98230, T. 360 332-4228. Costs involved: a $10.00 sign up fee and $2.00 pick up fee per parcel plus GST and PST (on most items) when crossing back into Canada. She notes that the business is open weekdays 8:30-5:30 and Saturdays 9-2 pm.

She goes on to note: “I can relate to your frustration... I was fed up with paying those high brokerage fees and was happy to have found this alternative.”

eBay has become part of daily life for many people and it is clear that cross border shipping fees touch a raw nerve for some of them. I’m sure I’ll be hearing more on this matter. Stay tuned.

Site Pick of the Week
http://www.mrsapo.com/ … a most interesting meta search site, a site that points to engines and directory services run by others. Enter your search term or expression once and then test it out across multiple services. Well worth a look.

Digital Cameras
Our listing of local camera prices has been updated at www.ndrs.org/iol/cameras.htm.

Peter Vogel is a Physics and Computer Sciences teacher at Notre Dame Regional Secondary School (www.ndrs.org). Suggestions and comments may be sent via email to peterv@portal.ca.