BREAKING: No More Cheap Shipping for Chinese Sellers

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From the Amazon Seller Forums:

 

@Charlie1983:

We have contracted negotiated international rates for epacket. We’re based in Las Vegas.

 

Got notification today that all USPS international GEPS contracts will be terminated September 31st.

 

This is all related to the Universal Postal Union agreement that allows Chinese sellers to ship products to the U.S. for less than it costs us to ship to the same state.

 

The administration has given the UPU an ultimatum, that they: either allow the USPS to set rates for China mail that arrives in the U.S., or the U.S. will officially leave the UPU on October 17th.

 

Either way, this means as of October 17, no more cheap Chinese shipping. They will have to pay the same domestic rates as us once their e-packets arrive here.

 

This is great news for U.S. sellers, especially eBay sellers.

 

Bad news for Wish com, Chinese e-commerce sellers, Ali-express, etc.

 

From Hacker News:

@magduf

This actually sounds like a good thing. It costs Chinese shippers almost nothing to send stuff directly from China, while it costs me quite a lot to send stuff within the US, largely because I'm subsidizing all the Chinese shippers.

 

Moreover, for me to send any parcel (even very small ones, like 2 oz.) outside the US costs a small fortune these days, again because I'm subsidizing the Chinese shippers.

@zizee

Lots of speculating why it is cheaper to ship from China than domestically, a lot of it misguided.

The root cause is that quite a few years ago the consortium of national postal providers which setup agreements on who pays for which parts of international shipping decided that China was classed as a developing country and given subsidized rates by other countries. This wasn't a big deal when the agreement was made because it was before the days of pervasive online commerce, and there just wasn't that much sent from China to other countries via the postal service.

 

I encourage everyone interested in this to checkout this podcast episode from NPR's Planet Money: https://www.npr.org/sections/money/2018/08/01/634737852/epis...

 

> The reason for this price gap, Jayme claims, is a secretive group of postal policymakers that meets every four years to fix international shipping rates. A kind of postal illuminati.

> Today's episode: A conspiracy theory that's actually real. How the decisions made behind closed doors make it cheap to buy things from across the world, but are also distorting the global economy.

@dev_dull

This is great news for U.S. sellers, especially eBay sellers.

 

Exactly the intended consequence. Why should US taxpayers subsidize shipping costs for products to come from China? It made no sense at all in today's economy unless the only thing you care about is paying less for your goods regardless of the consequences, which I don't think is a majority position of adults today.

 

Sources:

https://amzn.to/2HsOE3Z

http://bit.ly/2Lc5UMd

https://news.ycombinator.com/item?id=20810493

https://news.ycombinator.com/item?id=20814290

https://news.ycombinator.com/item?id=20810857

Brian | Shopify Partner | Ecommerce Consultant
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China is going to subsidized shipping, they won't let Chines stores suffer or it will be a disaster on top of the ongoing trade tariffs 

Developer of PixPix image editor for Shopify
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Reddit discussion on this topic:

 

https://www.reddit.com/r/shopify/comments/cwpv2j/breaking_no_more_cheap_shipping_for_chinese/

 

Brian | Shopify Partner | Ecommerce Consultant
 - Was my reply helpful? Click Like to let me know! 
 - Was your question answered? Click Accept as Solution  
 - Need further assistance? Visit www.BrianAtWork.com

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