What do you think about a seller in HongKong (China in general) shipping a 1 pound package to New York City for $3.66 while a seller in New York City pays slightly under $6.00 to ship the same weight package?
It gets worse for the 2 ounce package: A Chinese shipper can ship for .98 and the same package costs the US Shipper $2.45. See our previous Blog for data
This is the result of the UPU (Universal Postal Union) negotiation of rates with other countries. If you think this is deterimental to US businesses, giving Chinese (and other countries) an unfair advantage, then you can register your disapproval with the UPU, you must file through the Postal Regulatory Commission. Click Here for Website for voicing your opinion. (There is a short period for filing, and that is probably by design!)
Last year the USPS lost $75 Million dollars on this level service along (who knows how much on smaller weight packages). Anyone who thinks they can make this up by shipping this lost leader in larger volume missed math classes and economics 101. The deficit has to be made up by someone, and guess who that is? It is either higher USPS rates for everyone in the US or it is the US taxpayer!
I have spoken to the UPU who is collecting the protest and they are anxious to hear from the US citizens. These negotiations I believe were held in secret and partly supported by companies like eBay. Amazon has gone on record as opposing the rates.
Below is my letter to the UPU (and while I serious doubt it will be taken into consideration, I believe I speak for most US citizens that think this is patently unfair competition.
For more information read Ina Steiner’s Report
RE: UPU (IM2016-1) 20 July 2016
Statement from a Small Business AGAINST further sponsoring low cost shipping from China.
As Amazon told Congress last year, Chinese sellers can ship to the US.
A package weighing 1 pound cost an American Business ~$6.00 while a Chinese shipper pays only $3.66 (Yes I realize that Amazon is not a small business, but they represent a market place where many of us small businesses sell and they have valid, auditable data.)
The IG Office said: The terminal dues provided through the UPU framework are a money-losing proposition for the U.S. Postal Service and many other national posts, according to USPS Inspector General David Williams. The IG’s office has reported that the Postal Service lost $75 million last year delivering inbound mail from foreign senders, and the rise of the online channel for cross-border commerce is only adding to the challenge.
This presents an unfair competition to the very heart of American businesses.
- The presumed assumption that this low cost shipping goods to Americans at a lower cost somehow benefits America is not valid.
It is hurting Small Businesses and by penalizing these small businesses, you are thwarting growth and employment.
Surely you realize that those low cost goods do NOT represent any employment in the US, just a burden on the Post Office to deliver the packages –without the same compensation as delivering packages shipped in the US.
- The USPS is subsidizing these Chinese goods. And the deficit has to be made up. That either comes by way of Postal Increases or through bailout of the USPS at the detriment of US taxpayers. (This has to be patently clear to you.)
- Rising Postal Rates, compound the injury to American Businesses.
Any supposed benefit to Americans purchasing goods from China under this unfair agreement are more than offset by the number of small businesses just throwing up their hands and laying off employees.
I may be a small voice of one, and doubt seriously any affect or that my submittal will be read, but I feel it my duty to go on record opposing this continued penalty to Small Businesses.
The Unlimited US/VenetianBeadShop.com”