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Thursday, August 11, 2016

Post Office Loses $1 per order from China Shipped

ePacket shipment from China on ebay.

The Postal service is losing millions a year to help you buy cheap stuff from China - Washington Post

Some observations:

  1. Somehow for low weight items it seems cheaper to have an item shipped from China to the US, than ship an item within the US.
  2. ePacket takes around 14 days to get to the US. It may take up to a month.
  3. Basically Chinese sellers have taken over the market on eBay for new items of low weight mfg. in China.
  4. Some Chinese sellers get a US address (person), and still ship from China.
  5. For new girls dresses category, sellers from China now dominate it. This was not true a couple of years ago.
  6. No idea how returns work for sellers? Shipping from US to China is expensive, probably $15 starting per 1 lb. $16.75 using 1st class. This probably explains why there are so many companies that ship to China, probably use a container.
  7. Not sure how a US seller would compete with stuff from China on eBay, which seems to be about price, price, and price..
  8. ePacket my guess is subsidized by Chinese government, so super cheap and probably below their cost.
  9. USPS actually loses money, $1, on each item shipped from China via ePacket.

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