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re: Trump Ending Cheap Mail from China
Posted on 10/17/18 at 10:09 am to Allyn McKeen
Posted on 10/17/18 at 10:09 am to Allyn McKeen
This is probably a WAY bigger deal than people want to accept.
Most items shipped from 3rd Party sellers on Amazon fall in the less than 4.4 lbs arena. A large proportion of those quick buy products that are made in China then can easily qualify for the low cost parcel shipping from China, which in turn undercuts the local markets.
Very simply, if it cost more to make the product here, but less to ship it to the destination then the potential for an equilibrium exists. Right now China gets the win on production costs and then their shipping is also subsidized to a point that the only logical lever for a consumer to choose domestic products vs imported Chinese products is either a time constraint or a nationalism viewpoint.
I am not saying only buy American to hurt China, but now you should have a a much closer overall price equilibrium which will help balance out some of these quick buy purchases.
Most items shipped from 3rd Party sellers on Amazon fall in the less than 4.4 lbs arena. A large proportion of those quick buy products that are made in China then can easily qualify for the low cost parcel shipping from China, which in turn undercuts the local markets.
Very simply, if it cost more to make the product here, but less to ship it to the destination then the potential for an equilibrium exists. Right now China gets the win on production costs and then their shipping is also subsidized to a point that the only logical lever for a consumer to choose domestic products vs imported Chinese products is either a time constraint or a nationalism viewpoint.
I am not saying only buy American to hurt China, but now you should have a a much closer overall price equilibrium which will help balance out some of these quick buy purchases.
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