It's Official, No More Cheap Shipping For Chinese Sellers


#1

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.

(edited out external url)


#2

That’s great news!
For those who want to read a good summary on what’s going on, google
As U.S. Postage Rates Continue To Rise, The USPS Gives The Chinese A ‘Free Ride’
Then also google
This U.S. Postal Policy Powers Chinese E-Commerce While Hurting U.S. Entrepreneurs

Finally more of a level playing field.
Usually these things take years to negotiate or undo, but this one was quickly implemented.
Google
The End of Cheap Shipping From China
The White House wants to put an end to low-cost shipping from overseas, a move widely supported among U.S. e-commerce sellers.


#3

What you’ve overlooked is the Chinese government might just subsidise the postage rates. Sure USPS might charge China Post more, but not all (or zero) of that increase might get passed onto their customers in China. No user price increase means no difference, and the Chinese government just subsidises the exports.


#4

Yep, true dat.

Chinese Gov’t might subsidize the postage costs ( at least temporarily to help with the transition ). I would not be surprised if it was around $5 or so per package, times millions of packages… till now it was subsidized by yours truly and you and the rest of the USA customers who needed to pony up more for domestic shipping so the e-packet from China remains cheap for the shipments originating from China.

If they don’t subsidize it, this will help Amazon. Amazon is encouraging all the Chinese sellers to ship everything to FBA and the hike in e-packet rates will convince lot of them to go that route.


#5

We’d all like to see the Chinese to pay a fairer rate, but let’s not pretend that this would be the only consequence of the US abandoning the framework that sets rates between us and every other country.

From the Washington Examiner:

Some sellers suffer more from Chinese competitors than they benefit from sales to international customers, but others have a lot to lose if this unfolds in a Brexit-like fashion.


#6

I really don’t see that happening.

Our USPS international rep called us last week also. Essentially, the rates the US wants to charge China have already been set. They’re just not telling us due to confidentiality.

Our rep indiciated that the new rates for China shippers will be on par with what US shippers are charged to ship to China, i.e. the playing field will be leveled.

No more Shipping a 4 lb. package to the USA for $5. Retail rates from USA to China for the same weight is $70.

If the Chinese government wants to subsidize hundreds of millions of packages at $65 a package, I say go right ahead.


#7

The funny thing is, Amazon has been lobbying FOR the termination of Chinese epacket rates.

Once terminated, Chinese sellers will be forced into FBA, which is good for Amazon.

eBay lobbied hard against this. eBay owns no warehouses, and relies on China sellers selling direct via. epacket.

Notice how eBay announced their version of FBA starting next year? It’s no coincidence.

This is happening.


#8

I’d still like to know how British booksellers can send their books to the US for under $10 when it costs me about $30 to send a book to England. I mean, seriously…


#9

^ Er…


#10

look up on google

Global Supply Chain News: After Three Years of Secrecy, Amazon Starting to Ramp Up Global Logistics Services

they are actively looking to compete in the shipping industry

from the article

The project’s name: Dragon Boat.

As part of that strategy, Bloomberg reported Amazon had plans to take on freight forwarding and brokerage services directly, eliminating a set of middlemen.

Among the most important ramifications from Amazon’s vision: small Chinese manufacturer will be able sell to American consumers with no one else than Amazon between them.

Will Amazon provide its services only for Chinese manufacturers selling goods through Amazon? That is the trillion question, but note this: the USAToday says a job posting with Beijing Century Joyo in Shanghai describes the ideal candidate as someone who will help the company in “disrupting the way products are bought, sold and distributed on a global scale.”

Look out!


#12

Meh about time. Here is Canada I can buy a certain product from china and ship it to Alberta for $35. (The product lands in Ontario and travels through Ontario to Alberta).
But for me to ship that exact same product (Not even buy it) here in Canada Ontario to Alberta it costs $44.

So tell me how a Chinese shipper can manufacture and ship a product for less than what it costs me to ship to the province directly beside me? Oh because we subsidize their shipments.


#13

This post was flagged by the community and is temporarily hidden.


#14

Good news but won’t affect Amazon platform too much since too many Chinese sellers have already learned how to use FBA and black-hat tactics to manipulate Amazon platform.


#15

In the post I deleted, I gave you my estimate as to how much your competitors were probably paying, then I realized we cannot say due to our USPS non disclosure agreement, which states we cannot share pricing info.

What I can say is that they are not paying anywhere near what you are paying.

If you do good business internationally, you can probably get a GEPS contract. The minimum threshold volume is not outrageous and they are way more flexible than the requirements they list.

Edit: But hold off until this is all resolved, as there’s a 50/50 chance we’re all having our contracts cancelled.


#16

But since Amazon itself is going to be doing lots more of the shipping from PRC to USA then the actual costs for shipping has yet to be determined. Since this action should lessen the subsidy the US taxpayers are giving to PRC currently, Yea.


#17

Sept Only has 30 days… There is no September 31.


#18

When did we add an extra day to September to make it a 31 day month. :laughing::laughing::laughing:


#19

Finally! We might actually be able to MAKE money again on eBay and etc.


#20

i need my international postage rates to go DOWN, not the rates for the chinese to go up. $23 for an 8 oz package to Europe killed much of my international business.


#21

Nothing is official with the current administration until it happens… and even then it is questionable.