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USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

President Trump proposed the US Postal Service to exit UPU by the end of 2019.

If the outcome is favorable and all shipping subsidies to China end, it means Chinese sellers will have to pay the same price for shipping as American sellers or even higher.

Personally I'd welcome that decision since my Amazon business will skyrocket.

I'm already making a decent income but how prepared are we if that happens?

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

I don't see it changing much. Most of the Chinese sellers are using FBA. They are shipping to amazon with these heavily-Chinese-Subsidized shipping services like DHL, Fedex, & UPS. If the Chinese government really sees this hurting their industries, they will subsidize shipping even more.

Pretty much the same thing with ebay. They will just Ship to fulfillment centers here in the states via almost free DHL, Fedex, and UPS and then individual items will get shipped via first class.

So will the Chinese be paying more for shipping? Yes but it will be nominal. They will still flood the markets with their cheap garbage but will mark it up an extra $2-$3 more than it used to be. If you think that will cause your sales to skyrocket, then get prepared for launch.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

ebay on the other hand... my sales with skyrocket with chinese sellers not being able to ship cheap items for 99 cents shipping included

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

where did you see it being proposed end of 2019? I cant find any information other than vague threats from Oct of last year.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

I beg to differ,every Chinese Ebay seller I bought from,shipped via China Post from China,same with Alibaba sellers.
I dont think they can afford FBA,as most Ebay Chinese sellers are small sellers asking 99 cents with free shipping,if they are using FBA in USA,they cant afford to charge so little-99 cents.
All the Alibaba sellers I bought from do their own shipping from China,but then I dont buy that much from Alibaba and when I do,it is not large quantity,may be some one can shed light on it.
As for AMZn Chinese sellers,I am not aware of too many Chinese sellers using AMZN FBA.
Small sellers cannot afford to do so,as it would all be in US$ and what is the exchange rate now,China $6.7 makes one US $.
May be big sellers like factories ,but then they will be competing with their US customers?

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Having said that,so if they have to raised their shipping fee from China from zero to a few dollars,they can still compete well with the US counterparts.
if they sell an item for 99 cents,they pay may be 25 -50 cents for the item in China,but the US seller would have to pay more for the same item from his US supplier.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

no, atleast for my case, i would buy bulk from china supplier, usually shipping via DHL which is cheap if you buy in large qty. their only competitive edge was the cheap shipping. if we can normalize the cost to be ATLEAST the same, theres no way they can compete since my shipping would be 1-3 business days and theirs is 1-3 weeks.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Oh yeah, I just need them forced to go up $1.00 - $1.50 to make 10X more in sales and profits.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

but your shipping domestic USPS is 2.60-3.09 minimum,they can beat you on that,exchange rate is 1 US dollar= 6.7 Chinese dollar.
their competive advantage is more than cheap or free shipping,their item cost is a lot less than yours.you have to use DHL to ship you the goods and pay customs,they walk to the factory or street corner

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

factories sometimes will use their inventory as severance pay,or workers will get a discount buying from employer,sometimes they just steal or dumpster drive

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

i think you are confused. it will be expensive for them to ship products from china to here.. its NOT going to cost them cheaper than us anymore... thats what trump was getting at...

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

I know what Trump wants to do,China is no longer a poor country and we should not subsidise them.
I am referring to the exchange rate of 1 US dollar to 6.7 Chinese dollar and it is getting better/worse with the tariff issues.
They sell on Ebay USA,they collect US $,and their goods and postage are in Chinese dollar,so they start charging for shipping,theirs would still be lower than yours.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Agreed, any increase in costs of doing business against indirect competitors is a good thing. I'm actually really sick of having to sort search by US Only. No one wants to wait more than a week for something they can drive and go get.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

The big thing most people forget is $20-30 profit per day is a decent pay in China for most. Margins are very thin in china. They can be thinner and it would still be a decent days pay compared to most of us having to hit $200-300 a day to stay afloat.

My point being, there will always be cheap Chinese sellers because they can thrive on much less.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

10 cents makes a big difference in placement in some categories.

AMZ buy box constantly undercuts by pennies :violin:

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

BEST IS not to compete with the Chinese sellers selling the same merchandise they are selling.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

What if they enter your category :coffee:

Im seeing Chinese listings in categories they weren't in before on ebay. Just pages of the same cheap $hit no one wants drowning out local listings.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

are their items similar or identical to yours????

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Dunno, just a new observation. Could be nothing - could be more Chinese suppliers are deciding to sell direct and/or prefab products with the cheap parts/pieces they make there.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Youve got to do what you can to stay away from the Chinese Sellers unfortunatley.
I do fully agree with Yankee however we all know that the chinese sellers are making alot more than 20-30$ a day

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

Personally I think your logic is wrong. Many many Chinese sellers do NOT ship from warehouses in the USA. Also since I buy a lot of products from Chinese factories and pay little or no shipping, without subsidies they will have to raise my price and then I pass through the raise to my listings or make less money.

Re: USA Exiting Universal Postal Union, How Will Affect Your Amazon Sales
 

I dont know why he keeps saying DHL,UPS,Fed Exp do not cost much,they are expensive for bulk shipment.
I have tried to save by having them shipped via ocean freight ,then train ,but once it arrived at the local customs office,I have to get a trucker to pick them up ,and it turns out to be no saving but more work,unless you can go to the depot,take them thru customs yourself and bring them back in a van with your friends .
And truck charges more on Saturday and different rates for going to airport and coming from airport .
Also Chinese do not use FBA .
Also in some cases,you need a custom broker to clear customs for you,some do it themselves.
DHL,UPS and Fed exp have offices near airports,they get listings of what is coming and prepare customs clearance papework,their customs brokers will take them thru customs ,it is actually cheaper for small shipment and there is also insurance to cover any damage