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Sun Sept 22 2019 17:02:35

How Will ePacket Shipping Rates from China Change?

By: Reader

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Dear Ina, 
I love reading articles on EcommerceBytes. We have a company that sells golf accessories online. We sell on our website, eBay, Amazon and Etsy.   

We have a lot of competitors that sell on eBay from China that use epacket to deliver goods to the US at a much lower price than we charge. I have been reading about the US trying to change the rules so that the price will go up for the epacket service from China. 

My question is, do you know if the US is going to go push this through and make it more expensive for Chinese companies to ship goods to the US? Is there a way to know what the new shipping charges will be for epacket from China?

Thank you very much for your time.
David

Note from the Editor: ePacket rates are negotiated between international postal services but are influenced by the regular postage rates for small packets. This weekend's Dow Jones article (via Barrons) does a good job explaining the ins and outs of how things are changing. It's complex and the stakes are high, especially for small merchants. The bottom line: we don't know how ePacket rates will change, but keep in mind the UPU has already begun moving toward more equitable postage rates.



Comments (22) | Permalink

Readers Comments

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by: FeelingFroggy This user has validated their user name.

Sun Sep 22 17:16:00 2019

So instead of the post office charging a dime for each package they will now be charging. 11 cents. Don't hold your breathe on anything really happening. Their is a lot of hot air out there.

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by: Whatever This user has validated their user name.

Sun Sep 22 17:49:41 2019

I think the trumpet will back down just like every other thing he said he's going to do - we are supposed to have trade tarriffs in place now - do we? I mean are they really in place? So china has been getting an education as they go - they used to sell everything for a penny right?

They have been upping their prices for awhile now. Even at that we're creating even more billionaires in china - so they sold widget 1 for $.01 with free shipping (never could figure out how that was good for them or ebay) mine sold for $20 with free shipping.  They saw I sold it for $20 and raised their price to $.99 with free shipping.  Pretty soon I could no longer sell mine and was forced to drop it to $$10 (bare bones)  The consumer now is getting pretty savy and wants only the $.99 item - oh they buy mine when they don't want to wait 2-3 months for the china item to get here.  This plan is called volume - problem is there just isn't enough buyers left on ebay to create any type of "volume" except for the Chinese.  Personally I could probably vote for Trump if he stopped catering to the Chinese - stop this stupid postal agreement

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by: Babs This user has validated their user name.

Mon Sep 23 00:16:29 2019

I think it is fantastic that we are no longer going to give China 3rd world postal pricing by subsidizing their postage. Trump isn't going to back down on this. We will have to negotiate rates with other countries and do so outside the UPU which had a year to make the changes and might or might not be starting to do so now. This will level the playing field along with tariffs which my other business has encountered and we deal with. IMO The tariffs will be a good thing for the US in the long run.

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by: Steve M This user has validated their user name.

Mon Sep 23 03:47:00 2019

@ everyone...
In regards to the tariffs, the China suppliers/sellers are NOT paying a flipping penny for it...the Consumers (buyers) here in the United States are getting STICK with it.  So, are the tariffs good to level the playing field in regards to combat the China abuse?  In the short term, we can say YES YES, but in the long term (decades ahead of us), it will NOT work!!! Once again, the sellers from China are not paying the tariffs, it is the American Consumer getting hit with it.

About the ePacket business:
We have been complaining about it for the last 5 years or so...only barely now we are seeing some actions being taken against the ePacket-Deal signed approved back in 2011...who was behind the ePacket-Deal?? Well, we know it was eBay, Our own government at the time (2011) and I think amazon was in it for some parts as well...as many have posted before...how the hell is it possible that the Chinese get such low postage to ship a <16 Oz package from China to USA (~$2 or less)?  If I want to send a <16 Oz package from USA to China, it will cost me anywhere from $14-$23 !!!...  We will see in the next months how this plays out...hopefully it will be something that will help the American Small Sellers that are actually physically located here in USA and paying all these taxes and now dealing with the inter-state taxes and all that...

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by: flybuy This user has validated their user name.

Mon Sep 23 04:00:12 2019

From the bottom of my heart I pray there is finally a level playing field for China as far as postage costs. This is the country smuggling Fentynal into the USA which is killing a lot of people including young people.
I am tired of Chinese buyers asking why shipping is so expensive.
All I want is a level playing field so small sellers have a reasonable chance for success.
And if it isn't asking too much, it would be nice if China is penalized for stealing intellectual property too.

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by: marty This user has validated their user name.

Mon Sep 23 04:57:13 2019

" Once again, the sellers from China are not paying the tariffs, it is the American Consumer getting hit with it."

You don' t have to buy stuff from the Chinese sellers.

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by: Steve M This user has validated their user name.

Mon Sep 23 05:56:59 2019

OK, quoting myself as per the previous response:
... "Once again, the sellers from China are not paying the tariffs, it is the American Consumer getting hit with it."

YES, no one has to buy anything from the Chinese Sellers...

However, the problem of the tariffs goes deeper than just buying some item from the Chinese Sellers on eBay, Amazon etc... the tariffs are affecting and will continue to affect the American Consumer directly... Why?  If you go to your local merchandise stores (Walmart, Target, Even the local-pharmacy for goodness sake! etc...), you will see higher prices, even if it is just $0.50 more for a less than $10 item at your local stores...therefore YOU/ME the American Consumer are paying for those tariffs and NOT the Chinese suppliers/seller.

Walmart/Target and other national chain stores have huge suppliers from China and they are "passing the tariffs" (in other words charging us the tariffs) to the American Consumer...so YOU/ME are paying for those tariffs when we buy from the local stores !!! ...And that is the problem.

At the moment we are having the tariffs problems with a Distributor of Integrated Circuits here in California...that distributor has been established in the USA since the 1980s...but we got a friendly email telling us that many of the Integrated Circuits that distributor carries will increase in price due the tariffs...shock to us!  because we are NOT buying from the Chinese.  We are buying from a multi-million dollar distributor that is well established here in the US...

Then, that is the technical problem, the tariffs are "passed along" (Charged) to the American Consumer...


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This user has validated their user name. by: MainelyVintage

Mon Sep 23 07:36:11 2019

I read somewhere that if the UPU raises their rates, the Chinese government is prepared to step in and subsidize postage for their sellers -?

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This user has validated their user name. by: toolguy

Mon Sep 23 08:46:27 2019

I've NEVER received a e-Packet! (i don't buy china)

I wish my son could say the same, he gets at least 1 a week. . .

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by: epuise This user has validated their user name.

Mon Sep 23 08:48:08 2019

Before ePacket... China shipped in BULK... to US re-sellers (eBayers)... and everybody was happy... ah, the good old days.
They've CUT OT 'the middleman' (eBay US Seller)... selling DIRECT... to YOUR customers.

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by: Silver Ice King This user has validated their user name.

Mon Sep 23 12:35:34 2019

I keep reading about how Ebay and the government caused so much damage with the E-packet deal, which I admit i am not thrilled with either.  But then I read an article (sorry but i do not remember where I read it) and discovered that the E-packets actually cost China more than they would be paying if they only used the UPU rates - which are the same as Gabons rates.  Admittedly, the e-packet does include tracking which is the perk that sells it, but with all of the packages we have going with tracking now - its not really all that big of a deal.

I am in favor of exiting the UPU because they had a chance to address the China issue and decided to sit on their hands and wait an additional 2 years before they addressed it.  Only now that they see that we are actually going to withdraw from the UPU and they are all going to be out of jobs and probably the kickbacks they have been getting from China all these years do they actually  start to state that they are going to address the issue.  They had their chance and its time to put an end to this fraud that is being foisted on all the nations by the Chinese receiving such reduced rates and still being considered a 3rd world economy.

Yes it is going to cost some sellers and may put a lot of them out of business, especially when the tariffs get included on their items.  But that is really no different than those of us in the USA whose customers are not having to pay sales tax on their purchases.  That is costing many sellers a lot of money as many buyers no longer see the big savings from purchasing online that they have come to expect so they are not making a lot of purchases online, but again these purchases were supposed to have the tax paid on them in the first place.  

Between the increased sales taxes being collected and the UPU rates being eliminated it is beginning to look like Ebay is going to be in for even larger reductions in sales than they had been anticipating with their reduced marketing expenses.  Also all those large investments in China are probably going to become worth a lot less than they have them recorded on their books which should also cause Ebay to need to take a big hit on their non-operational expenses when they lower the value of these so called assets that were really worth nothing as they were nothing but Goodwill in the first place, which is basically a made up asset so they do not have to show how much they overpaid for the actual asset they acquired in their profit and loss statement.  Ebay took over a $3 billion hit to their Profit and loss statement in 2017, resulting in over a $1 billion loss for the year due to finally recognizing one of these accounting changes that they had failed to deal with previously.  Once again they should be taking another hit in 2019 when they revalue their "assets" in China.  This should be another year of trying to spin a poor performance by Ebays upper management which sits and watches as Ebay continues to lose market share.

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by: Geetar This user has validated their user name.

Mon Sep 23 14:39:50 2019

I dont know folks. I had a $4,200 order last week come in, and I paid $732 in import tax.  That was the highest ever I paid by a long shot. Most I would ever pay before for that delivery would be about $450-$480. I buy from a Korean firm that has their stuff made in China.

None of you mentioned that this the chinese seller does not have to pay when they ship from China. When I import I have to pay, so I loose a bit, and charge less.

I wish that customs would do what they do in Europe. Charge upon delivery, and hold until it's paid. Then the playing field will truly be even.

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by: Flying Childers This user has validated their user name.

Tue Sep 24 08:02:52 2019

Knowing the way that Governments work, here’s what will happen.
The price of postage will go up, the Government will make billions more in revenue, and prices for the small US sellers will stay the same or go up.
You know the old joke- I’m from the Government and I’m here to help you.
If the Chinese postage rates are raised it will end up hurting small sellers.  Just like everything else they do to “help” us.

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by: SenseiSez This user has validated their user name.

Tue Sep 24 11:14:01 2019

@Whatever - " ... I think the trumpet will back down just like every other thing he said he's going to do - we are supposed to have trade tarriffs in place now - do we? I mean are they really in place? ... "  -  WOW!!!! -  Do you really think/believe that!?!   What has Trumpie backed down on?  Haven't you been following the news - any news?!!! The tariffs, most certainly, ARE in place and are DEFINITELY hurting the Chinese economy.  Thirty year lows as to their growth in their economy, which is slowing down.  Exports fell by 6.5% in the first month after Trump put on the tariffs. They need some sort of revenue, so they have to slash prices. The Chinese have now been forced to massively lower their prices in sales of their goods to their neighboring countries/competitors (such as Vietnam).  The fun is also beginning as their pig population, now thoroughly infected with African swine fever, and has to be destroyed. People in China love their pork and prices have increased dramatically. Food riots should become very commonplace,  But, to reiterate, Trump hasn't backed down on ANYTHING!  (gotta love the keyboard to enable those capital letters, though!). He's not a dictator, unlike the leaders of Communist China, so he just can't demand something done and have it done. Nonetheless ........

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by: exdwh This user has validated their user name.

Tue Sep 24 11:48:37 2019

Two things that I didn't see mentioned:

1) The tariff money is collected by our government. In theory that money should offset other taxes.

2) No matter how you slice it, China is a volume importer of small packages. They do the preprocessing and get them to the US. That's always going to lower costs. All they need is a 'last mile' courier. We simply don't have the same volume going the other direction. As a result, USPS insists on using planes instead of ships. I agree that USPS should not be providing services at less than actual cost. This would include some US states/territories.

In my experience, USPS unnecessarily delays outbound international shipments by days or weeks. They bounce around sorting centers before departure. That's a logistics problem.

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by: SenseiSez This user has validated their user name.

Tue Sep 24 16:00:28 2019

Have to mention: Why is eBay charging sales tax on items purchased from China?  Seen and heard that from family & friends, ever since eBay instituted charging sales tax.  It can't be one of those ever-so-convenient-excuses, such as a glitch! Strictly a rhetorical question as we all know (yes, ALL) that it's just another excuse for those crooks to steal more of our money. People should be made aware - don't you think?  

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by: Geetar This user has validated their user name.

Tue Sep 24 17:55:49 2019

If they are going to charge sales tax, charge the purchases made in china too. NOT doing so will just give the chinese sellers another advantage. God knows they already have enough.

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by: Geetar This user has validated their user name.

Tue Sep 24 17:58:58 2019

The shipping from China should be AT LEAST 1 and a half times what it costs us to ship domestically here. It really should be the same price as what it would cost us to ship to China.

Any less than one and a half times is BS. We should not continue to get the shaft. This crap has to end some time.

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by: SenseiSez This user has validated their user name.

Wed Sep 25 09:31:26 2019

@Geetar: As eBay is collecting taxes on purchases from Communist China, to where does that tax get forwarded?  As  taxes collected on purchases in the States are, supposedly, then paid to that respective state. So, you're maybe thinking that eBay is then forwarding tax money collected to ... China? Ha - that's a good one!

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by: SenseiSez This user has validated their user name.

Wed Sep 25 09:35:23 2019

Don't know where to post it but:

DEVIN WENIG is OUT ... GONE ... KAPUT !!!

Evidently, Elliott Management made it obvious that he was not in their plans for eBay.  Wening scooped up his ill-gotten cash (yes, it, most assuredly is 'ill-gotten') and left.  Bye-bye - no good wishes to you, Devin.

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