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No More Cheap Shipping for Chinese Sellers

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11–20 of 508 posts

Re: No More Cheap Shipping for Chinese Sellers

#11
What would be the concession from the Chinese?

Or do they up the ante and impose more tariffs on incoming U.S. goods?

Is this something that the Hacker News community actually supports Trump on? More curious than anything - you just don't see a lot of support for any of his initiatives here.

? Why all the downvotes?

Re: No More Cheap Shipping for Chinese Sellers

#12
post #5

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.

Does this mean lower government spending? Kind of blows my mind the government gets tax money and private people get the benefits.

Huh? I'm not sure what this has to do with taxes or government spending. The USPS doesn't get tax money; it's financed by its customers, like any other business, it just happens to be wholly owned by the federal government. Postal rates are high because they're forced by the UPU agreement to deliver Chinese mail for almost nothing, so they pass the costs on to US customers.

Re: No More Cheap Shipping for Chinese Sellers

#13

Great planet money episode on the topic: https://www.npr.org/sections/money/2018/08/01/634737852/epis...

>FOUNTAIN: Anna sent us a chart that estimates how much less. And it says, if you or I wanted to send a three-quarter-pound package somewhere in the U.S., the U.S. Postal Service would charge around $4.76 for the last leg of the journey.

>MALONE: Yeah, the so-called final mile. However, if that same package came in from China, the USPS would only charge China Post $1.39. That means the USPS charges you and me roughly 3 1/2 times more than what they charge China Post.

Comparisons like this are very misleading. They aren't comparing apples to apples. In particular, they take a retail price for fast shipping with tracking and compare to a wholesale price for slow shipping without tracking.

It's true in general that UPU rates are cheaper than the comparable US rates but by 10-20%, not a factor of 3.5.

Re: No More Cheap Shipping for Chinese Sellers

#14
This is one way to mitigate knock off products from China. If the shipping costs come up to the norm, they won't always (if ever) be the cheapest product so the real one will win out more often.

Various products will have different tipping points where it just doesn't make sense to ship and/or they aren't getting enough sales to justify it.

Personally, I like it and it seems like everyone wins.. except people who undercut the real product with cheap, inferior knockoffs.

Re: No More Cheap Shipping for Chinese Sellers

#15
post #11

What would be the concession from the Chinese? Or do they up the ante and impose more tariffs on incoming U.S. goods? Is this something that the Hacker News community actually supports Trump on? More curious than anything - you just don't see a lot of support for any of his initiatives here. ? Why all the downvotes?

I support this, and I'm a rabid leftist. Things should cost what they cost. The only time government should interfere with pricing is to force companies to price in externalities.

Re: No More Cheap Shipping for Chinese Sellers

#16
post #12

Earlier quoted context omitted.

Does this mean lower government spending? Kind of blows my mind the government gets tax money and private people get the benefits.

Huh? I'm not sure what this has to do with taxes or government spending. The USPS doesn't get tax money; it's financed by its customers, like any other business, it just happens to be wholly owned by the federal government. Postal rates are high because they're forced by the UPU agreement to deliver Chinese mail for almost nothing, so they pass the costs on to US customers.

This is incorrect. There's no mechanism by which cheaper prices for UPU mail translates into higher prices for US customers.

If they had pricing power they'd raise prices regardless of fixed losses elsewhere.

Re: No More Cheap Shipping for Chinese Sellers

#19
post #10

Having bought a couple drop-shipped goods from China, I, for one, won't miss it. The most noticeable effect I have seen is scammy listings on eBay and Amazon, unresponsive sellers, and unreliable delivery time. I have not seen any arguments of the form "but the price of X will go way up."

>Having bought a couple drop-shipped goods from China, I, for one, won't miss it.

I will, China makes good stuff depending on if you do your research to what's quality and is just a cheap piece of crap.

Re: No More Cheap Shipping for Chinese Sellers

#20
post #4

If the Trump administration had just opened with this, I think we might have saved ourselves a lot of stock market turbulence with tariff pissing contests. U. S. sellers start in the hole by the fact that they can't even compete on shipping prices with Chinese companies. It reminds me of the Shell gas station owner I worked for many decades ago who complained that the local drugstore could sell quarts of oil cheaper…

Tangentially related, but I was surprised at how blatant a lot of supplier price fixing is. Either you sell at the supplier agreed price or they don't supply you. This keeps prices up for the sellers, which presumably is good for the supplier as well. That's in the more open market of independent businesses.

In your example, the drugstore may be selling at cost or at a loss to bring people in the door, or he may actually have a cheaper supplier. But for the Shell Station franchisee, he likely has a contract to buy Shell products from a particular distributor, so even if he could find a lower priced distributor he is unable to use it. That's all part of the franchise business model, where the franchiser double dips by taking licence fees and contractually obliges you to use their services as well. Subway charges high margins for their mandatory dishwashing soap supply for one example.

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