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Tuesday, June 4, 2013

Chinese Sellers on eBay

I have noticed there are a lot of Chinese sellers on eBay. They are located in China, but they are selling to a US market. The question is how does this make economic sense?

Some Guesses:

Their cost is probably 50 to 75% of what you would pay in the US. They are getting it at the Chinese wholesale price, which is much less than the US wholesale price. Not to mention the tariff / customs issue. When your importing products, there is a lot of additional costs. The cost of shipping, going through customs, tariffs, warehousing in the US, etc. are all costs US importers need to buy.

Lower profits required to break even. US salaries are usually more than Chinese salaries, not to mention the other overhead costs - rents, taxes, etc.

Shipping Costs are surprisingly low from China to the US. For a 2 oz product, it costs .97 to ship. For 18 oz, it's $9.67. Amazing. The costs of shipping in the US, are less than shipping the item from China.

USPS Gives eBay China Sellers Competitive Advantage - - ecommerce Bytes

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