How heavily does China subsidize its sellers?

[this*old*attic]

I really should know better - I’ve bought a few things myself from China for mere pennies on the dollar.

My normal gig is vintage, but I made bridesmaid hairpieces for my daughter’s wedding last week and two workers at the reception venue asked me to make and sell to them.

I have loads of materials leftover so why not? Maybe there’s a side gig here?

So I check the other site that’s crafty and these things are going for $20 - $60 depending on bells and whistles.

So I come back to EBay and they’re going for $1.87 with free shipping out of China.

😑 meh

I get that everything is cheaper there and therefore salaries and hourly wage are correspondingly lower there...

But nothing is FREE.

How is this a sustainable business model and what is the benefit to the Chinese government, hourly or piece workers, and business owners?

Scratching my head, here.

[18704d]

This recent thread says it explains what you're asking:

My visit to China, the Chinese eBay strategy,and our loss in Sales.
https://community.ebay.com/t5/Selling/My-visit-to-China-the-Chinese-eBay-strategy-and-our-loss-in/m-...

Lynn

[myjunqueyourtreasure]

Maybe you'd be better selling them on the other place then?

[femmefan1946]

While China Post subsidizes shipping costs, there is no reason to think that the government of China is subsidizing businesses.

It's the opposite.

There is no minimum wage.

There are few safety standards and those are not well-policed.

There is no social safety net- health care is private, there are no old age pensions, no parental leaves, no unemployment insurance.

All of which means labour is very cheap. And there is still a lot of unemployment, which is one reason the Chinese armed forces are so large (although a lower percentage of the population than the US military).

There is also the question of 'vapourware'.  A lot of Chinese sellers of amazingly cheap goods don't have any actual goods to sell. If their overseas buyers don't complain (either because they forgot the order or because it was too little money to bother about) they are $1.87 ahead. And if the buyer does complain they refund and move on.

[pecanpiea24]

universal postal union

[femmefan1946]

Except the UPU loophole is closing rapidly.

As of the convention in Fall 2016, China Post has agreed that they are not a 'developing' country and are already raising their international shipping rates to a more reasonable level. This will continue to 2020 and the next UPU convention. When they may be persuaded to raise them again.

And the UPU problem was international. One way First World countries dealt with packets streaming in from China but the costs of delivering them not being equitably shared, was simply not to deliver them.

Canada Post had a huge backlog of cheap 'free shipping' shipments in Vancouver, with delivery being three, four or six months. They were just not considered a priority. Along with the fentanyl crisis, (which to be fair, China did act on reasonably quickly) it was hard to get those packets through customs.

The same was happening in France, Sweden, Germany and UK that I heard of on various eBay Boards.

USPS apparently has made a couple of foolish contracts in the past couple of years, one with AZ which is rumoured to be below cost and the ePacket deal with China. I don't know much about the details of either, because our Canada Post didn't do that and continues to be profitable.

[second-chance-sa1es]

Its not a rumor. the USPS contract with AZ is below cost, and AZ has been abusing it like a tawdry little strumpet.

[div_style]

Years ago when I went to China a few times I bought stuff there to sell here, mostly at flea markets.  Some of my biggest money-makers were sheets of stickers, about 7 x 10 inches that I sold for $1 a sheet.  In China they cost about 3¢.   Another was 3=D pictures, 11 x 14" that were 50¢ in China and $5 at the market.  Many of the items you might find at Walmart one could source in China for about 1/10th of Walmart's price.  So it's a combination of cheap shipping and low cost items. 

[slippinjimmy]

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@second-chance-sa1es wrote:
Its not a rumor. the USPS contract with AZ is below cost, and AZ has been abusing it like a tawdry little strumpet.

---

I presume you are basing this on the mindless and uninformed rantings of the orange in the white house. The bottom line is that USPS are reasonably happy with the deal they have with Amazon and if it's such a spectacular deal for Amazon pray tell why are doing everything they can to take their business AWAY from USPS (plus FedEx & UPS) and bring it in-house where possible.

[this*old*attic]

It was really more a whim than anything else. I like crafting, have leftover supplies, and thought it might be a nice addition to my listings.

I don’t have any variety at the moment, and figured it made sense to pull in some other traffic that might browse my items.

[second-chance-sa1es]

No I am basing it on personal experience inside the Amazon Warehouse. And no I havnt met a single USPS employee thats 'happy' with the increased load. Since im in there 3-5 times a week I chat with my postal people.

[second-chance-sa1es]

Beyond that the structure of the contract was never for USPS to do this on a permanent basis. it has always been an augment while AZ bolsters their white van contractors.

not exactly the proper forum to be bringing your personal politics into the equation. Uncouth

[femmefan1946]

@second-chance-sa1es

no I havnt met a single USPS employee thats 'happy' with the increased load.

Different postal systems-- same answer.

Since when does management listen to employees?

[second-chance-sa1es]

LOLOLOLOL no joke.

[mountainmommie]

You are asking how communism benefits a government?