What is the U.S. Postal Service, China, EBAY Tri-Lateral Shipping Agreement?

Tri-Lateral Shipping Alliance Signed with eBay GC and China Post

I recently read an article titled, “The Postal Service is losing millions a year to help you buy cheap stuff from China.”  The article shows, “In an effort to ride the e-commerce boom, the Postal Service signed a deal in 2010 with China’s state carrier to sell a special service for small packages entering the U.S. For a small premium, the USPS offered [China] tracking and delivery confirmation, an essential feature for online retailers, as well as expedited shipping.”

Lets take a look at who was part of this U.S. Postal Service agreement.

In a 2010 U.S. Postal Service deal (click to read the deal) titled, “Tri-Lateral Shipping Alliance Signed with eBay GC and China Post.” This “agreement creates a new, simplified shipping platform for international tracking and delivery of lightweight goods ordered by consumers in the U.S. from eBay sellers in China.”

Why is this significant?  Alibaba recently went public on the United States stock exchange.  Alibaba DOES NOT  sell any products directly to USA consumers but they provide a platform where foreign companies can directly compete with USA businesses.  It is kind of like an eBay platform.  The U.S. Postal Service and EBAY created a “loophole” that allows foreign companies to ship products to American consumers at a lower price then a USA based businesses can.  Most products sold in the United States come from importers that buy items from China and then they resell the products.  This loophole allows foreign based companies to sidestep USA based importers and compete directly for the sales.  The USA based importers have a major disadvantage.  The foreign companies are selling many of the products at the same or similar price directly to the American consumer.  The American based retailer and wholesaler cannot compete with China because of price and shipping costs.

Here is an example:

I looked up Nike BRAND Air Max shoes on AliExpress.com the cost with FREE shipping direct from China is $48.00.  The average cost for the same pair of shoes purchased from a USA based online retailer was $89.00.  Apparently you can buy the same pair of shoes directly from China for $41 less.

Call your U.S. Senator and Congressman and ask them to SHUT down the Tri-Lateral Shipping Alliance Signed with eBay GC and China Post.

Comments

  1. Paul says

    Thomas,

    You missed something very important in this great article.

    Right below that listing, is an explanation of how this Chinese seller willfully ignores US Customs and Duties regulations.

    They offer to list the value as under $40. They also mark the package as a “gift”.

    So, not only do they enjoy subsidized cheap shipping, they break US laws to do it! I would suggest that this even constitutes mail fraud- but of course we can’t do anything about it.

    I’m SURE each and every customer will declare this “gift” to their taxing agency, right?

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