FAQ: International sales, payments and shipping [updated 1/7/10]

This FAQ is designed for eBay sellers, but much of the content is applicable to off-eBay sales as well as personal shipping purposes. This FAQ is focused on sales, payments, shipping, customs, and other issues related directly to international sales. Refer to the existing Paypal, scam, and insurance FAQs for detailed info about those areas.

Note: I don’t do very much international shipping, and when I do it’s primarily to Canada, so please feel free to offer suggestions on improving this so we all can get the most use out of it. This is a work in progress, and input is greatly appreciated.

Note2: Unless otherwise specified, currencies are listed as USD.

Contents:
I. Payments
A. International postal money orders
B. PayPal
C. Cash
D. Western Union wire transfer
E. Western Union money order
F. Bank wire transfers
II. Customs
A. Customs documentation
B. Customs broker fees
III. Duty and taxes
IV. Proving international delivery
A. UPS/FedEx
B. USPS
V. Insurance
VI. USPS international shipping options
VII. Other useful links

================

I. Payments

A. International postal money orders (IPMO): These are great ways to get money with very low risk and cost to the seller. Unfortunately the list of countries that participates in the international PMO system is somewhat small (list of participating countries).

The max amount for an international PMO is $700, and you do need to make sure that the IPMO is denominated in US dollars. These can be cashed just like domestic PMOs can, right at the post office. Always cash these; this both verifies the authenticity of the IPMO and gets you your cash much faster. If you normally use a smaller PO branch, it might be easier to go to a larger branch where the clerks are more likely to be familiar with IPMOs, and where they are more likely to have cash on hand to cash the IPMO.

B. PayPal: See the PayPal FAQ. At this time only shipments between and within the U.S., U.K., and Canada are covered by the SPP. You make the call on whether the risk of a reversal is worth potentially more sales and higher bids. You do need proof of delivery, so see that section below for more information. Fees: up to to 3.9% plus 30 cents per transaction, may be lower depending on sales volume. Transactions may be subject to currency exchange fees, and/or cross-border fees.

C. Cash: Not allowed by eBay.

D. Western Union wire transfer: Not allowed by eBay.

E. Western Union money order: Need to add details.

F. Bank wire transfers: Allowed by eBay. Some banks offer free incoming transfers. Be sure to verify your banks fees before offering/allowing this. Need more details.

II. Customs:

Customs/taxes are the responsibility of the buyer. Customs are importation fees (aka duty). Sales taxes may also be due depending on where the buyer is located. For example, if you ship from the U.S. to Canada the buyer may owe customs fees and/or provincial sales tax and/or general sales tax and/or harmonized sales tax (HST or PST don't seem to be charged simultaneously, but I'm not a Canadian tax expert).

You as the seller can help ensure the buyer is properly charged the appropriate fees by doing the following:

1. Correctly describe the item. Most countries reduce taxes/customs fees for used goods. if you sold a used item, be sure to indicate it is used on the customs documents.

2. Correctly value the item. The value listed should be the purchase price of the item exclusive of shipping. Overstating the value often results in the buyer being overcharged for taxes/customs, and may result in the buyer having to pay any fees at all when none should be due. Many international buyers are well aware of the values at which customs/taxes are due and try to keep purchases under that amount. They can apply for a revaluation and refund of overpaid taxes/customs, but they tend to be unhappy if you make them go through that hassle.

Correct valuation also affects insurance for the item. You cannot insure for more than the item's declared value, so listing a lower than actual value means that if the item is lost/damaged in transit, you get to make up the difference.

3. Correctly mark the item as a gift or merchandise as appropriate. If you sold a widget to a buyer, that means it's not a gift; it's merchandise. You should mark the customs documents appropriately. Some buyers may ask that you falsify customs forms by marking purchases as gifts. They want you to do this because gifts typically are charged less customs/taxes than purchases. Falsifying customs documents is illegal in the U.S. and most other countries. Items grossly undervalued may also experience customs delays if the customs officials catch the problem and take the time to correct it.

A. Customs documentation:

Merchandise being shipped internationally should have customs forms attached. Whichever carrier you use can supply these documents. I'll include links to USPS forms in an upcoming revision to this FAQ.

B. Customs broker fees:

All of the major carriers charge a fee to the buyer to get packages through customs. Rates vary by country. I'm including rates for U.S.-to-Canada shipping; if you have links to rate tables for other major destinations, let me know and I will post them.

Canada Post: $5CDN fee for non-EMS items; $8CDN for EMS items
UPS: Free for items valued <$20, starts at $7 items valued >$20 (UPS rate table). (I believe those values are USD, but the UPS table is unclear on that). For reference for importers, here is the rate table for fees UPS charges for bringing stuff into the U.S.
FedEx: If you have the rate table, please let me know.

FYI, Americans may have to pay broker fees if we are shipped dutiable stuff from other countries. USPS charges $5.35 per dutiable item in most cases. The private carriers vary.

Cautions:

1. FedEx will attempt to collect from the buyer, but will release the package to the buyer without being paid the broker fee. If that happens, they can and will go after the shipper (you) to get that fee. UPS does not do this.
2. UPS and FedEx fees can get fairly hefty; don't use these carriers without making sure your buyer understands he will be charged fees beyond taxes/customs in order to get his package.

III. Duty and taxes: These vary greatly by country, by product, and by product value. For Canada, gifts valued <$60CDN are tax and duty free, while merchandise <$20CDN is tax and duty free (source). Australia allows imports of goods valued up to $1000 (I believe AUD) before charging customs (taxes may be charged - I'm not familiar with the Australian tax system). Other countries have different thresholds.

Determining the duty rate for an item can be an exercise in frustration. I'll post some links to U.S. rate tables in a future revision, but be aware that the rates can vary wildly by country or import and export, product type, and value.

IV. Proving international delivery: If you accept PayPal, you need to be able to prove delivery to satisfy SPP requirements. You may want to have proof of delivery when you accept other forms of payment as well. Proving delivery internationally can be somewhat tricky. Your options:

A. Ship UPS or FedEx: These private carriers handle the package from shipment to delivery, and can provide the usual tracking and signature if requested. Rates for international UPS and FedEx are higher than domestic shipping, and that customs broker fee applies.

UPS Ground can do signature on delivery to Canada. See this page. Should be able to do the same shipping anywhere else, and of course with other classes of service.

http://www.ups.com/content/us/en/shipping/time/service/standard.html

B. Ship USPS: The May 14, 2007 postal service changes include extension of tracking to additional mail classes. Express Mail International and Priority Mail International are supposed to be trackable. Until we see how reliable tracking on PMI is, sticking with EMI for proving delivery via tracking may be a good option.

Registered Mail: Add more here.

V. Insurance:

As with domestic shipments, you may wish to insure international shipments as well.

UPS: Includes insurance up to $100 at no additional charge
FedEx: Includes insurance up to $100 at no additional charge
USPS: Global Express includes insurance up to $100 at no additional charge. Additional coverage is available at $.75 per $100 cverage. Priority Mail International has insurance available at a discount rate of $.75 per $100 coverage; Up to $300 indemnity is provided at no additional charge for PMI (except PMI FRE) based on weight and destination.
Third-party insurers: Often cheaper than the carriers' insurance, especially if you maintain an account. The most popular are U-pic and DSI.

VI. USPS international shipping options

Global Express Guaranteed:

•Includes up to $100 of insurance at no additional charge
•Guaranteed delivery by specified date or postage is refunded
•Tracking included
•10% discount on postage when purchased via Click N Ship or authorized postage vendor
•FedEx handles shipment and delivery
•This service does include a sig on delivery, as FedEx is the final carrier and has the capability to get a sig.

Express Mail International (formerly GEM):

•Includes up to $100 of insurance at no additional charge
•Additional insurance at $.75 per $100 coverage (a discount over regular rates)
•Tracking included
•8% discount on postage when purchased via Click N Ship or authorized postage vendor (PayPal shipping IS eligible)
•Flat rate envelope now available: $22 to Canada/Mexico; $25 everywhere else

Priority Mail International:

•Additional insurance at $.75 per $100 coverage for PC Postage users (a discount over regular rates)
•Tracking included
•5% discount on postage when purchased via Click N Ship or authorized postage vendor (PayPal shipping IS eligible)
•Flat rate envelope now available: $9.95 to Canada/Mexico; $11.95 everywhere else
•Flat rate boxes now available: Standard box: $23.95 to Canada/Mexico or $38.95 everywhere else ; large box $29.95 and $49.95
•4-pound weight limit for FRE and 20-pound limit for FRB
•Insurance available starting at $1.65 for up to $50 coverage
•Flat rate envelopes cannot be insured by USPS.
•Flat rate boxes and standard PMI (non-USPS provided packaging) will carry up to $300 indemnity coverage based on package weight and destination. Additional coverage can be purchased.

First Class Mail International:

•4-pound weight limit
•Does not appear to be insurable via USPS
•Registered mail service be added
•Shape-based pricing now exists, just like domestic first class (that is, different rates for letters, flats, and parcels)

On the tracking issue, we’ll be getting an expansion of tracking to PMI. The IMM indicates tracking is only to major destinations, however, so while it's a great expansion for international sellers, it will not work in every case. You may need to check trcking at the website of the final carrier (e.g., Canada Post or Royal Mail) for complete tracking and delivery info.

All flat rate boxes ad envelopes can be used for both domestic and international shipments.

VII. Useful links not listed above:
•USPS info specific to each country: linky (click the appropriate country)
•USPS International Mail Manual: linky

Updated 12/11/06: Modified text for organization, minor typos, clarified some sections
Updated 12/13/06: Added fees for Bidpay per Timothy86's suggestion, and added PayPal fees.
Updated 5/13/07: Edited to reflect new USPS international shipping options
Updated 5/16/07: Clarified insurance options for USPS
Updated 1/1/08: Removed Bidpay as a payment option
Updated 2/18/08: Updated international postal MO link, added inbound customs clearance fee info for USPS.
Updated 5/28/08: Added info after latest postal rate changes.
Updatded 1/7/10: Updated PayPal fees

Thanks! Now you want me to read it and get into International shipping??? Like dealing with US buyers wasn't enough

great guide, thanks!

As far as I know, Western Union money orders are subject to the same problems as regular money orders (they could be fake or cancelled and you would have to deposit and wait for them to clear before shipping).

also, they give a discount if you pay for global express mail shipping online... it's like 5%, but that adds up, and you can type in all the customs info instead of having to fill it out by hand.

This is really helpful, I hope it gets posted to the top (a 'sticky').

Here is the bidpay seller protection (it is the same for US and international):

b. Seller Protection. For each Payment, if a Card payment submitted by a Buyer is approved by BidPay and applicable funds are remitted by BidPay to Seller’s Bank Account, BidPay shall assume the Chargeback risk for such Payment subject to satisfaction of ALL of the following conditions:

1. the goods shipped are not subject to the “Restricted Transactions” terms set forth in Section 2.1.e. below;

2. Seller ships goods using an established courier or postal service that provides shipment confirmation services;

3. the goods are shipped within seven (7) business days or the timeframe stated in the auction listing, whichever occurs earlier, of Seller’s receipt of the applicable funds from BidPay;

4. the addressee information for the shipment is filled in correctly;

5. Seller provides BidPay with a complete and accurate copy of the proof of shipment for the Transaction in question within three (3) business day of BidPay’s request for such documentation;

6. Seller was not engaged in illegal, fraudulent, or misleading activity related to the Transaction;

7. Seller assigns and delivers to BidPay the proceeds of any insurance recovery received from the delivery service if the shipment was insured; and,

8. Seller is at all times in full compliance with applicable laws, rules, regulations, statutes, ordinances, and the terms and conditions of this Agreement.

timothy86 said: and there may be other fees:

In addition to the Seller Fee imposed by BidPay, the Destination Bank may impose additional fees on Seller, resulting in the delivery of an amount that is less than the total amount remitted by BidPay to Seller. Any questions about fees or services related to Seller’s Bank Account should be addressed directly to the Destination Bank.
Tim, that's just to warn sellers that their own banks may charge ACH fees for receiving funds. bidpay itself only charges the stated fees.

Thanks for posting the fees, that's a good thing to add to the FAQ.

This is an excellent message! I want to ask about postal money order, does this one can write seller's name on it? A lot of buyers just worried about lost it on the mail. If so, it's more secure.

Great FAQ!!

Besides the payment options listed I've succesfully used GCO and moneybookers for interntaional sales. Are their any other options that eBay lets us use?

Thanks

bidhere23 said: PS. USPS fees for Global Rates are going up 10-20% in May. Just an FYI!

Also, they are consolidating Global Priority Mail, International Air Mail and something else into what is now called International Priority.
Here's the link to the PDF with details and proposed rates: LINK

Good news is that it looks like more services will have tracking (which will help with Paypal SPP). Rates are more expensive, but they are offering discounts for using online postage which range from 5-10%. Also, they will offer international flat-rate boxes supposedly the same sizes as the domestic ones (see page 12 in above link).

davef139 said: rocker86 said: bidhere23 said: PS. USPS fees for Global Rates are going up 10-20% in May. Just an FYI!

Also, they are consolidating Global Priority Mail, International Air Mail and something else into what is now called International Priority.
Here's the link to the PDF with details and proposed rates: LINK

Good news is that it looks like more services will have tracking (which will help with Paypal SPP). Rates are more expensive, but they are offering discounts for using online postage which range from 5-10%. Also, they will offer international flat-rate boxes supposedly the same sizes as the domestic ones (see page 12 in above link).

These have no been approved yet (from what i see), this was part of a proposal, the only approval so far was the domestic rates, they arent adding tracking its just a renaming of services to make them more like domestic, I think the biggest thing was they were going to allow Domestic Priority supplies for GPM, along with printing postage online they might take away having to stand inline
It seems approved acording to their own website. Here's what it says on the new rate FAQ page at USPS.com:

International Mail – FAQs

When do the international changes take effect?
International changes will be implemented concurrent with the domestic rate change, Monday, May 14.

and for tracking:

Will each of the four products offer insurance and tracking?
GXG and Express Mail International include insurance covering up to $100 for loss, damage, rifling or document reconstruction. Priority Mail International also includes limited insurance coverage. Additional merchandise insurance is available at the mailer's option. Tracking is included in the price of these products.

and on the flat-rate box:

I'm hearing the Priority Mail Flat Rate Box is now available for international use – is that true?
Yes. Up to a 20-pound limit, or allowable contents, Priority Mail International Flat Rate Boxes will be $23 to Canada and Mexico, and $37 for all other countries.

Is there a Priority Mail Flat Rate Envelope for international at a single price?
The Priority Mail International Flat Rate Envelope price will be $9 for Canada and Mexico and $11 for all other countries. The weight limit for the Priority Mail International Flat Rate Envelope is 4 pounds.

Shipped item via Priority Mail Interntional.

Tracking? What tracking? That is what my post office said.
Great... Is there a separate tracking number or is it just the custom form?
As it looks like nothing has really changed... Except higher prices.

Have we got word yet as to which forms of international shipping are going to meet PayPal's proof of delivery requirements? I don't want to force my buyers to use the whatever-the-new-version-of-GEM is if something cheaper will suffice.

tlaxson said: jhl906 said: Shipped item via Priority Mail Interntional.

Tracking? What tracking? That is what my post office said.
Great... Is there a separate tracking number or is it just the custom form?
As it looks like nothing has really changed... Except higher prices.
From what I've read on various boards, PMI-Flat Rate may not be tracked, but other PMI mailings will be. I can't find a reference for this on the USPS site, however, so it may be a misunderstanding of the insurance rules. It appears that the tracking will be done via the customs #. Reports from USPS experts are that the lack of delivery information will be grounds for filing an indemnity claim.

Until we see a few packages delivered internationally, it's hard to say just what we can expect as far as tracking.

Well, I have shipped 7 items internationally in the past 2 weeks. So far I have received tracking information on them all. They were all shipped PMI (not the flat rate box).

Hey Tlaxson, others-

I have read the info. and cannot seem to find an answer to a questions I have.

When shipping international via USPS. Do I have to include some type of invoice from (eBay/paypal/Amazon, etc) or is the customs form all I need.

Some employees at my local post office recently started saying I need to attach 2 copies of an invoice to the outside of international packages, but this changes depending on who is working....

You guys (gals) seem to know the facts! (Sorry if it's here somewhere, I could not locate the info.)

Thxs.

Are there any countries that you cannot send a flat rate box or envelope to? If so does anyone know what they are? Thanks in advance.

Yeah...I'll get back to you on that...Why don't we all just take two countries a piece????

I'm preparing to sell a lot soon more and remember from experience that some countries didn't have flat rate envelopes listed (this was before international FR boxes). Maybe I just entered a weight over 4 lbs?

vegastaco said: ok i need a little help please i am shipping 2 tickets to the UK the tickets are for a sporting event to be held in the states what do i put on the customs form gift etc and what would be the best way of shipping to satisfy paypal

thank you for any help and thanks OP for your work

1st class registered or International Priority.

If they are over $250 you need to ship UPS/FedEx/DHL to get online viewable signature.

Is there any relatively 'safe' way to sell & ship to China? Value of eBay auction approx. $1000. Is it possible to use BidPay?

I know to Hong Kong I have used BidPay and shipped via USPS global express, without incident.

Just an FYI, the link for international money orders isn't working. Here's a new one.

You can check tracking at canadapost.ca.

I don't believe USPS EMI includes sigs.

ellone said: I have a question about sending an item >$250 to Canada - What is the best option to send it and get a signature? Is it Global Express Guaranteed? Since the final carrier is Fedex, would they release the item to the customer even if they don't pay the broker fee?
Just earlier this week I had an expensive item to ship to Canada. I like the chop-chop feel of shipping Express out of the US, seems a lot more regimented/scanned than the usual, although Priority is "getting there". Anyway, as usual I asked about signature service to Canada and was told no there isn't any availalbe, except if I send it registered mail (this involves a signature at every hand-off, and closing all the seams with paper tape, and I think only for 1st Class and maybe Prio mail, not Express). I sent it anyway, and today it was delivered.

If I plug the tracking/DC # into usps.com it just says delivered, but when I put it into canadapost.com it shows it WAS signed for and I CAN see the sig online. It was insured for over $500, perhaps that forces a signature in Canada.

I wish you could pay for a signature in destination country all the time.

Update - similar shipping conditions to Australia resulted in written message "signed for by A. Customer" (where A. Customer is the correct name of the recipient) on the Aussie tracking site but sig itself not visible online, as far as I can tell.