China EPacket Deal with the US

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For Chinese businesses who have their goods listed online and sell to a global community, they may be finding they are getting more and more US buyers than before. The reason for the increase in US buyers has to deal with how much cheaper Chinese companies can send their products to the United States versus the price of US consumer buying within the US. This has caused many US businesses to state there needs to be better deals with China, in terms of how items are shipped and the prices in which they are offered. Mainly, they are talking about the deal between China Post and the US Postal Service.

In 2012, 27 million ePacket shipments were made from China Post to the US

The USPS is claiming that with the deal that is in place, they lost around $1.10 on each piece that was delivered. The USPS Inspector, General David Williams, stated:

“The explosion of ecommerce is creating new areas of concern.”

The US wants to increase the price of shipping products from China to the US. However, it is a slippery slope to enable this to happen, as China can turn away from the ePacket agreement that is in place. Instead, China could opt to use the UPU system, which could mean China pays even less to ship their products to the United States.

Whether package rates will increase for China to send to the US, does not seem to be in any immediate danger of changing. The US is simply looking at what the options are, and if these options are going to be prudent for both parties involved.

About Author

Social Brand Watch (SBW) is a collection of experts in digital, mobile and social media in China. SBW was created to complement Resonance's China Social Branding Report, a bi-weekly report focusing on modern marketing methods of the world's top brands in China.

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