International Postage

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Jacko
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International Postage

Post by Jacko »

Did you ever wonder how Chinese sellers can send most items to the US with free shipping? It is not because the Chinese government subsidizes their postal system... it is because the US postal system is subsidizing them with the very cheap rates!

https://www.forbes.com/sites/wadeshepar ... usa-cheap/

Arrgggggg!

-J
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mediatechnology
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Re: International Postage

Post by mediatechnology »

It sucks.
And the USPS subsidizes Amazon as well.

If I ship a first class <8 oz box its about $14.50 and climbing.
ePackets are virtually free.

Alaskans have the same problem shipping to US ports.
Its cheaper to send a container load from a foreign country than it is to ship from Alaska to Portland.
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JR.
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Re: International Postage

Post by JR. »

That program is fairly old (subsidized shipping from mainland china) and likely to be reviewed along with other trade issues. Up until recent decades China was considered a poor undeveloped country and received multiple trade concessions.

That cheap shipping is slow boat and sometimes discovered after you place an order and delivery is not what we have come to expect. :oops:

Not to change the subject but does everybody notice how much faster direct sales commerce moves these days?

I operated a mail order (audio kit) business back in the 70s-80s. I even recall legislation passed back then stipulating that mail orders must be delivered within 30 days, or the customer must be given the option to get their money back or authorize slower delivery. As crazy as that sounds, as a small one man shop I had trouble filling the rush of orders from my early kit projects, that generated a huge rush of orders from a cover article in Popular Electronics. I had the difficult choice between hand addressing and mailing delay notices, or spending that time shipping out more kits. :oops: One kit based on a single sourced IC that I had placed 1k pieces on order and was told "was in stock" when I placed the order weeks before my cover date, only to learn later that they were in stock as dies in malaysia :o and still needed to be lead bonded. Finally I figured out how to use a computer to print delay notices using those carbon paper backed self mailers.

Even earlier this century with my drum tuner business I started out only shipping out orders once a week. Now I try to keep inventory in stock and generally ship within 24 hours.

I am old and patient so I don't demand the instant gratification of rush shipments, but I understand the modern business model desirous of competing effectively against bricks and mortar with physical inventory.

JR
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JR.
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Re: International Postage

Post by JR. »

For more discussion about winding back subsidized shipping rates from China.

https://thehill.com/opinion/finance/418 ... e-shipping

https://www.theatlantic.com/technology/ ... es/573337/

JR
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mediatechnology
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Re: International Postage

Post by mediatechnology »

Then there came change. The Trump administration announced U.S. withdrawal from the UPU as of Oct. 17, 2018. The objective was to arrive at competitive and fair global shipping rates.

This move showed the Trump administration’s willingness to quit multilateral agreements judged unfavorable to U.S. interests. Although the UPU withdrawal process takes one year, U.S. deep discounts for Chinese packages ended immediately.
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JR.
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Re: International Postage

Post by JR. »

mediatechnology wrote: Thu Nov 28, 2019 9:25 am It sucks.
Lots of things suck... :lol:
And the USPS subsidizes Amazon as well.
Jeff Bezos is not popular with POTUS, perhaps related to Washington Post editorial and reportage?

If Amazon was being subsidized by USPS why would they invest capital to build out their own shipping infrastructure? I suspect the reality is more like Amazon is smarter than USPS when it comes to negotiating deals.
If I ship a first class <8 oz box its about $14.50 and climbing.
?? Maybe put it in a larger box and add some rocks to get the weight up. :lol: Within the last week I mailed two different packages that weighted about 2.5# each. One to GA and other to MD, both cost around $11 ea (priority mail... not flat rate, just regular priority mail, what used to be called first class.)
ePackets are virtually free.
The climate huggers are now whining that email causes global warming (something about server farms... they must love bitcoin miners).
Alaskans have the same problem shipping to US ports.
Its cheaper to send a container load from a foreign country than it is to ship from Alaska to Portland.
This is courtesy of the Jones act (1920). Subsidizing US shipping industry after WW I was probably a good concept but now it increases the cost for shipping between domestic ports (must be shipped on US built boats using US crews). This was in the news recently when it tangled up shipping hurricane relief aid to PR from the US. Sen McCain tried to repeal this back in 2015 but failed due to support from unions, ship builders, and even the military to keep it in force.

This act increases consumer costs for goods that would benefit from low cost shipping between US ports. Gasoline can cost more if shipped on US boats to a refinery. One farmer in Hawaii reportedly ships his cattle to the mainland by air freight because Jones act makes ocean shipping (on US boats) more expensive than planes. :roll:

JR

PS: coincidentally Amazon just a lost a huge cloud services contract with US government (military?). Microsoft won the contract but I have no love for either of those two.
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mediatechnology
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Re: International Postage

Post by mediatechnology »

If Amazon was being subsidized by USPS why would they invest capital to build out their own shipping infrastructure?
Most of that investment appears to be moving heavy freight long distances using cargo planes and not last mile delivery of customer packages.

Amazon does do its own delivery here using sub-contractors.
They do a lot of damage to the neighborhood.
When you see one coming run and if they come into your driveway check your property for damage.
Their delivery vans look like hell from all the things they've backed into.

Amazon also occasionally uses people delivering packages in their personal cars.
I haven't seen that recently.

Most of the Amazon packages recently are now are UPS and USPS delivered.
My wife and neighbors use Amazon a lot.

I think drones for last mile delivery will eventually cause enough accidents to be banned.
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JR.
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Re: International Postage

Post by JR. »

mediatechnology wrote: Sun Dec 01, 2019 6:41 am
If Amazon was being subsidized by USPS why would they invest capital to build out their own shipping infrastructure?
Most of that investment appears to be moving heavy freight long distances using cargo planes and not last mile delivery of customer packages.
Last mile is the expensive part... that's why UPS and Fedex(?) have cheap shipping services where they partner with USPS for last mile delivery.

I've talked about this before but I have an issue with USPS not recognizing my street address in their data base... hilarity ensues when UPS or Fedex shipping software uses USPS database that claims my street address does not exist but tells me they cannot ship to a PO Box. I have had long discussions with my local postmistress when they put stickers on my package telling me to use my PO box address, for a shipping service not allowed to deliver to PO boxes. :roll: :roll: :roll:
Amazon does do its own delivery here using sub-contractors.
They do a lot of damage to the neighborhood.
When you see one coming run and if they come into your driveway check your property for damage.
Their delivery vans look like hell from all the things they've backed into.
I am not holding my breath to see amazon delivery vans in Hickory any time soon. And I live in (near) downtown Hickory, many of my fellow residents live deeper into the sticks. This is one of the reasons for USPS franchise and sundry support for rural areas.
Amazon also occasionally uses people delivering packages in their personal cars.
I haven't seen that recently.
Amazon is trying to pitch me their local drop box for delivery pickup, but the drop box they suggest was something like 50 miles away. :roll:
Most of the Amazon packages recently are now are UPS and USPS delivered.
My wife and neighbors use Amazon a lot.
I finally reached a compromise for the address conundrum. I add #297 (my PO Box number) to the end of my street address and that keeps the postmistress from putting stickers on my package.
I think drones for last mile delivery will eventually cause enough accidents to be banned.
Don't bet on that, the trend (IMO) is toward even faster deliveries and humans are already too expensive. I don't know that flying drones are the best (cheapest) solution. I could imagine self driving delivery vans, getting packages to our driveway, with rolling robots making the final several yards door delivery. Security seems a concern but I expect residential security cameras to become more pervasive, some are already doing facial recognition.

Smart self-driving vehicles with even rudimentary communication should not hit each other, unless they get into a road warrior mode bumping competing delivery services off the roadways.

Who knows smart door locks may allow the delivery robots to drop the packages inside the house, or into secure package lockers.

Again unlikely to happen in Hickory anytime soon. There is one TV commercial pimping doorbell cameras that begins "everybody loves doorbell cameras". I usually dive for the mute/remote, because sales pitches like that do not resonate positively with me. 8-)


JR
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