Earlier quoted context omitted.
In the Netherlands our postal service has already stopped delivering packages from China to your door ( very recently ). They just slip in a statement 'pick up here & here'. I guess they thought it was too much work too.
Only for stuff that doesn't fit trough the mailbox (and even then not always). They did tell me its a saving measure tho, as China pays very little
A free shipping mystery
81–90 of 202 posts
Re: A free shipping mystery
#82I asked around and it turns out that postal services in rich (EU) countries have a special, heavily sponsored rate for 3th world nations. This wasn't a problem with the occasional letter from Afrika, but the post services didn't really saw this coming: Mass free shipping from china. Apparently the EU wanted to get out of this, but china refuses (and seems to be able to, for now).
Enjoy it while it lasts :)
Re: A free shipping mystery
#83As an aside, I've been screwed several times by Prime's "guaranteed two-day" shipping. I had package which was very late December last year. When I went to the USPS tracking page to check the location, it turns out Amazon had requested the 8 day shipping option. After several angry calls I finally had the item cancelled and a new one on the way with Saturday shipping (the lower-tier rep said that it wasn't possible,…
The problem might be Amazon here in this specific case, but I'd hazard a guess that this is just a subset of the massive drop-off in service that Amazon is experiencing due to a major transition to using USPS instead of UPS. Here in NYC Amazon delivery has gone from being amazing and magical to nearly worthless seemingly overnight with this change. UPS (and Fedex) didn't seem to have any trouble delivering even to ch…
Re: A free shipping mystery
#84Earlier quoted context omitted.
From the article: > All this should be a reminder that any trade deal has winners and losers and unintended consequences. Obviously, whoever you subsidize is a winner. If you're setting up barriers to trade (e.g. tariffs), foreign sellers/manufacturers lose. If you're subsidizing imports, domestic sellers/manufacturers lose. Why can't we just not subsidize anyone ?! Free trade is supposed to be just that, free . Inst…
Free trade requires both sides to be equally free. Tariffs are one of the defenses against another nation massively subsidizing an export. Getting all countries to play fair (in this case neither subsidizing or taxing) isn't going to happen. You also run into the interesting situation of what is a subsidy that impacts exports/imports? For example, post great depression america started tax subsidy for farmers to ensur…
The purpose of these tariff-reducing trade treaties is much more about gathering political coalitions to break through public-choice failures resulting in (overall welfare reducing) protectionist policies taken by each side.
Re: A free shipping mystery
#85No idea how it is possible. The bubble wrapping protecting it from shipping is worth more than what I paid.
Re: A free shipping mystery
#86It's a combination of subsidies in China [2] and really low Universal Postal Union rates for terminal delivery from China to the US.[1] Terminal delivery in the US is about $1/Kg. Market rate from Shentzen to Long Beach to ship a container is about $1200 right now. [1] http://fortune.com/2015/03/11/united-nations-subsidy-chinese... [2] http://cep.lse.ac.uk/pubs/download/cp396.pdf
In the Netherlands our postal service has already stopped delivering packages from China to your door ( very recently ). They just slip in a statement 'pick up here & here'. I guess they thought it was too much work too.
After lots of "failed" delivery notes when there was always someone present, I asked the workers in the post office why they don't deliver packages anymore (thinking it might be related to country of origin and specific agreements between different postal services regarding fees).
They were adamant that delivery was attempted and it must be coincidence. In the end I suspect, in our case, it's more a case of silent protest from the postmen who are payed poorly, so they don't bother carrying the packages.
Re: A free shipping mystery
#87The postal service is a networked delivery service, just like the Internet. The difference is that the data packets are physical envelopes. Now, the cost of running the postal service is the cost of supporting the whole network of delivery vans, sorting offices, collections and so on, including all the staff. The cost of supporting the network is the same whether it carries a very large number of packets or zero pack…
Re: A free shipping mystery
#88Re: A free shipping mystery
#89Earlier quoted context omitted.
That only gets you so far though. > assuming it takes the mailman as little as 10 seconds to deliver the package, and given he is paid the minimal legal wage here, that would already cost… 3 cents already! The marginal cost for delivering that button (even assuming the button itself was free) was more than 3 cents.
What if it's like airlines, where the full-fare and business class passengers subsidize the economy class? Maybe for every 3 cent button, someone is paying more than the marginal cost for their shipping, so it all evens out in the end?
Re: A free shipping mystery
#90Earlier quoted context omitted.
The point is that transaction is not profitable but overall the system is. They get soaked on the 3c button, but as most people dont do this, they can absorb that cost and subsidize it with the rest of their profits.
Fine, but why would they? They're running the system anyway, sure... but why take a marginal loss on that 3 cent transaction?