Why Is Online Postage from China Is So Cheap?

I am confused, would like to have bargainer idea, why online shopping from China is so cheap for example a stuff would cost $2(delivered) from China but when that item would need to be posted here in Australia , just the postage would cost $2, forget about the item cost and profit? Any ideas from the guys here?

Thanks.

Comments

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    International deals with Australia Post and many others

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    I would guess their state owned postal providers are pricing their services to support local businesses in China and export more. Bit different to here where they price to make a profit for themselves. Nothing wrong with that - just different priorities.

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      Yes. I think that their government subsidises small businesses. Wish it would happen here. Once sold a book on eBay……to a guy in outback WA. Cost was like 15 bucks. Got stung bad.

      • +3 votes

        I meant the government supported the postal service more to reduce the costs on their economy - not direct subsidies to the business.

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          Chinese government want to encourage export value added goods and import substitution within the economy while the Australian government wants to focus on importing every value added goods on the back of exporting from primary industries. Being a resource rich country can be a problem sometimes as it becomes too easy to sell natural resources and make money without really making value added goods locally.

    • -1 vote

      Nothing wrong with that - just different priorities

      You think there's nothing wrong with an oligarchy where you are the loser.

  • +1 vote

    This has to do with the volume of import vs Export.
    Think about it, you receive more parcels from overseas than local senders.

    In Australia, the post office delivers more international parcels than local ones. And which postal company do you pay for your parcel to be delivered? The one in China (for example), not Auspost.

    In short, China has high volume of parcels exported, and low volume of imports. Hence, they collect more money.
    Auspost has low volume of parcels exported, and high volume of imports. Hence, they collect less money.

  • -2 votes

    IIRC they cut costs down by sending everything over in containers or basically bulk and so they might send like 10,000 pcs of something in a large box with some other items in a container or large box or something for maybe few hundred dollars depending on the weight and then so the cost per item shipped becomes something like a few cents when you calculate.

    Or at least that is my idea I honestly have no idea but yeah it is kinda weird how they can send a single item from their warehouse or distribution centre to you for less than the cost of what a normal consumer can send something.

    There is a way and it is definitely most probably because of something like bulk or container shipping etc.

    Sorry I don't know too well as I have not looked into this but I am sure there is a youtube video of it or info somewhere somebody has to know.

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    I've noticed some of my low-value parcels are coming via an intermediary country, recently Solomon Islands and Myannmar.
    China Post must be getting expensive?

  • +1 vote

    Yes they're sent in containers which is why things can take such a long time to arrive.

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    Subsidised by the Chinese government to encourage exports. Look at how many Made in China items you have at home. Also they do ship in bulk, that’s why it takes longer because they collect them first.

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    Lots of speculation here.
    The pricing is due to the cost base set by the universal postal union. You can find out all about it (it is insanely complex) at www.upu.int
    Short answer is Chinese letter rate for international post is a pittance, something like 28c, and it covers items up to 140g, so many small parcels. My numbers might be slightly wrong, I looked it up a couple of years ago.

    The next UPU settlement agreement is likely to up these costs, in my opinion .

    • -1 vote

      Some time since I also tried to decipher the UPU agreement as well. From memory the receiving country agrees to deliver the item for the same price as applies in the sending country.
      This postage subsidy is paid for by the Australian taxpayer to the detriment of our own local business'. I can buy a small item from China and have it shipped to me for an all-up cost of under $1.00, yet to mail the same item to the next suburb here with AusPost costs $8.30.

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    Terminal dues.

    Thats what developing countries fall under, CHINA is one of them. They get subsidised shipping to help them. Plus a heap of other benefits. Thats what TRUMP wants to stop.

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    Google came up with the better explanation;
    But this is for US
    https://www.theatlantic.com/technology/archive/2018/10/trump...