Ina Steiner EcommerceBytes Blog
News and insight focusing on ecommerce.
by Ina Steiner, Editor of EcommerceBytes.com
Tue June 16 2015 22:34:11

Amazon and eBay Have Different Views on USPS Deals with China

By: Ina Steiner

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Amazon told Congress on Tuesday that it is often cheaper for a merchant in China to send a package to a customer in the U.S. than it is for a domestic seller - the cost to ship a one-pound package from South Carolina to New York City would run nearly $6; from Beijing to NYC: $3.66, it said.

The disparity is due to ePacket deals struck between the USPS and China Post, something EcommerceBytes has been writing about for years and that Congress is now investigating.

What Amazon didn't mention is that its rival eBay is benefitting tremendously from ePacket deals. Cross border trade is extremely lucrative for eBay and its payment processing subsidiary PayPal. In fact, eBay has struck tri-lateral deals with the USPS and postal services in Asian countries including China, Hong Kong, and Singapore.

As we reported in this article from 2011:

"Nearly 40% of eBay sellers in China are using the ePacket service to ship to the U.S., with over 80% of items delivered in five to 10 days. Upon arrival in the U.S., these shipments are processed as domestic First-Class Mail, with a one to three-day delivery standard. According to the original announcement, "Sellers in China using the shipping platform through eBay GC are expected to ship small items such as cellular telephone accessories and electronics weighing up to 4.4 pounds (2 kilos), with most in the range of 13 ounces and under."

"The service offers local pick-up service and label printing, coupled with online tracking and pre-customs declaration for a 7- to 10-day guaranteed delivery period and at a 30-50% discounted price compared with many equivalent services."

Amazon's vice president of global public policy Paul Misener called the system frustrating and illogical, and said the losers are American businesses selling to American consumers, and the winners are foreign sellers selling to American consumers.

Misener said Amazon was looking out for its seller customers. "We're going to be fine either way, but this kind of imbalance for our seller customers is illogical."

FedEx also weighed in about the impact of such deals on the private sector. 

Read the full story about Tuesday's hearing, including what the USPS Inspector General had to say, in Tuesday's Newsflash, and let us know what you think.




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Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: pace306 This user has validated their user name.

Tue Jun 16 23:18:21 2015

In english - Amazon is PRO seller, eBay is ANTI seller - need I say more?

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: Philip Cohen
Web Site

Tue Jun 16 23:49:55 2015

Demonstrably, eBay's arrangements are all pro Johnny Ho (and the bunch of other shysters that are running eBay) and anti every one else in the U.S. ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas  

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: RKTOYS

Wed Jun 17 00:12:07 2015

If Amazon was really pro-seller, it'd open calculated shipping to everyone.  Their $4.99 flat rate (minus fees) just attacks sellers from a different direction than eBay's ePacket shenanigans.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: sasikat9 This user has validated their user name.

Wed Jun 17 06:22:14 2015

Anyway one looks at it, this whole EPacket scam is nothing but a bailout for the chinese, subsidized by the American taxpayer.

Ebay and the US Government are twins. Both treat their populace as second class citizens,

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: Rexford

Wed Jun 17 06:54:15 2015

I agree with what pace306 said, but I would have added one word....eBay is anti AMERICAN seller.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: maxmad This user has validated their user name.

Wed Jun 17 07:09:38 2015

I feel sorry for stockholders of ebay, that could loose their investments.... I can only hope they have their listening ears on

ebay is absolutely reliant on the e-packet deal, in fact their whole business model is based from it, the ecommercebytes article from 2011 states 40% china sellers, I would say that number is much higher today, with even more inventory from china,

When this e-packet deal is altered, ebay is done, the insiders probably know this already, and have already set the wheels in motion,,,,  

 

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: Volvo351 This user has validated their user name.

Wed Jun 17 08:35:19 2015

Why should we be surprised that our own government is favoring foreigners over American citizens?

As for the eBay [mis-]management team, they'd sell out their own mothers for a dime.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: lostinNYC This user has validated their user name.

Wed Jun 17 08:42:23 2015

Why would e-packet delivery be bad for US sellers?

If you are in the US and sell Chinese made goods based on price alone, I don't see how your business model is going to work out. I personally would not even think of selling low-cost made in China products in the US unless I have a competitive strategy. I do sell some Chinese made items that cost me under $0.30 wholesale (bought from US suppliers) and it is possible (at a very nice profit). E-packet delivery doesn't stop me from doing that.

I am a seller, but I buy from China often when there is no decent domestic source for an item that I need. E-packet works great, fast and with tracking.

If the USPS makes good money on that deal it is a win win for people in the US: fast secure delivery at low rates when buying from the country that manufactures the stuff anyway and secure revenue for the USPS.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: toolguy

Wed Jun 17 08:55:01 2015

I don't buy items that ship ePacket!

I've instructed all of my family NOT to buy anything from overseas on eBay.

I really don't think eBay is anti seller, they made plenty off me yesterday!

I need more days like that!

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: hopeforthebest This user has validated their user name.

Wed Jun 17 09:06:20 2015

Thank goodness your family has you to give them orders about what they can and can't buy with their money! :)

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: toolguy

Wed Jun 17 09:31:45 2015

We get NO ePackets under my roof

My house, my rules!

If anyone doesn't like it the door is open

I believe in supporting America and American made products

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: Rexford

Wed Jun 17 09:38:16 2015

lostinNYC, you lost me.  No one said anything about selling or not selling Chinese goods. What people want is a level playing field as it relates to shipping internationally. While I don't often agree with Amazon, I'm in their corner on this one.

Why should our government favor the Chinese as it relates to shipping discounts?  USPS raised international rates extremely high for USA sellers while lowering (or should I say substantially lowering) rates for the Chinese to ship to the USA.

I can't help but think that the  Donahoe twins (eBay and ex USPS Donahoe) were collaborating on this anti-American deal.  

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: ebay refugee camp This user has validated their user name.

Wed Jun 17 09:55:08 2015

Of course ebay, with Obama and international trade czar with China, John Donahoe is basically screwing American sellers and giving a advantage to the Chinese sellers.
Who is the main architect of this plan?
This is completely wrong and US sellers should be compensated for losses.
This is also a big reason US sellers sales are down.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: lostinNYC This user has validated their user name.

Wed Jun 17 09:58:45 2015

@rexford
The USPS actually loses less money on shipments from China than shipments from other places. So why the opposition to e-packet delivery then? If China would insist, the rates would be even lower...

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: maxmad This user has validated their user name.

Wed Jun 17 10:33:27 2015

when you can't even ship a small empty box, across the street, for less then the same box filled with stuff from the other side of the planet, for sure something is very wrong with this picture ,,,,

But all is good, you have your e-packet, a cheap plastic 99 cent phone case, and ebay has their FVF,


for ANYONE endorsing this, I suggest you start writing some letters of apology to the children of this country so they can understand why they inherited a life of poverty, in a jobless society.




 

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: ajeweler This user has validated their user name.

Wed Jun 17 11:09:46 2015

that whole epacket thing is based from china the very people who use child labor, and has no child labor laws, it is indeed sad that one can sell a 99 cent china item with free shipping to here, and ebay calls them top rated sellers and the American sellers cannot even sell an item for 99 cents at all unless they give it away, shipping first class 3oz package with tracking within the united states is $1.97,

ebay as a part of their china sales imports by container loads of products from china marked
" gift " and will not allow united states sellers to use this , and not to mention it is illegal to do so from customs to declare an item a gift when it was sold

ebay does break the laws without a care at all they think they are exempt from laws

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: Philip Cohen
Web Site

Wed Jun 17 11:10:41 2015

@lostinNYC,

Read the linked Newsflash; USPS have said that they are losing an average of $1.10 on each Chinese ePacket item they deliver in the U.S. ...

The eBay executive suite—where the incompetent mingle with the disingenuous, the malevolent and the outright criminal, and the just plain stupid … http://bit.ly/11F2eas  

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: b86fiero This user has validated their user name.

Wed Jun 17 11:22:26 2015

A 3 oz package from China to the United States costs that seller about 30¢ to ship with epacket.  
My USPS cost for the same 3 oz package shipped to my neighbor down the street is a whopping $2.04 - and that's with the eBay power sellers discount!!
This unfair underwriting of foreign business is why eBay is littered with 99¢ auctions (or less) with free shipping from our good trading partners (sarcasm intended) and why American businesses are struggling to compete in the ecommerce world.  

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

This user has validated their user name. by: Rexford

Wed Jun 17 13:00:54 2015

lostinNYC, I've given my reasons already.  If you missed my point, I don't think expounding upon it further will help.

Perminate Link for Amazon and eBay Have Different Views on USPS Deals with China   Amazon and eBay Have Different Views on USPS Deals with China

by: Frank F This user has validated their user name.

Wed Jun 17 13:06:03 2015

Hooray! FINALLY someone stepping up to address this eggregous shipping agreement! These Chinese and Hong Kong sellers are the MAIN reason for the declines us American and UK sellers have seen since 2011, there is no doubt about it.

Just look at the results of the search for 'jump suit' and try so many others and its DOMINATED by China and Hong Kong sellers. If you had these products your American business is DEAD!

And let me point out again the very top seller in best match for this and MANY other items has gotten over 2000 negative and neutral feedbacks in just the last 30 day. HOW are HORRID China sellers at the top of best match? Because ebay wants them there and they while they destroy U.S. sellers with their draconion defect policy and invisibility from search!! http://feedback.ebay.com/ws/eBayISAPI.dll?ViewFeedback2&userid=pzf2011
&de=off&items=25&which=negative&interval=30&_trkparms=negative_30

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