You have your facts correct. It is literally cheaper, much cheaper in fact, to ship a small item from China than it is to ship the same item domestically. It is called the "ePacket", and it is so cheap because every one of those is subsidized by the USPS (and therefore American businesses like ours); every single one of those is sent at a loss to the USPS. This is a long, complicated subject but something everyone who does business with the USPS needs to know about. (Long story short, the subsidized ePacket that costs the USPS a fortune is forced upon the USPS by a treaty, and only our elected officials can change it.)
As we prepared for another biannual increase in postage coming soon, it is something for everyone think about.
If your 6x9 envelopes light enough, thin enough, and flexible enough for letter mail, ESE or a regular envelope and a stamp might be an option to try to remain competitive (but those options come with their own set of issues.)
