UPU Rates: Sending a Package from China to US Cheaper Than Domestic Shipping
The Universal Postal Union's (UPU) international shipping rates have led to an unusual situation: it's cheaper to send a package from Beijing to San Francisco than from Los Angeles to San Francisco. This is due to the ePacket program, which benefits certain countries like China, classified as a group 3 nation, while the U.S., a group 1 country, pays more.
The ePacket program, originating from China, allows merchants there to ship goods to U.S. consumers at rates unavailable to U.S. merchants. This is because the UPU classifies countries into groups based on their economic development, with group 3 countries enjoying lower rates for international shipping. Consequently, cross-border ecommerce is booming, with postage rates varying greatly among countries.
This disparity puts U.S. ecommerce merchants at a competitive disadvantage. While they pay higher rates to ship domestically, Chinese merchants can send products to the U.S. more cheaply. The U.S. Postal Service incurs millions in losses annually due to this arrangement, with domestic consumers making up the difference.
The UPU's international shipping rates, with China's group 3 classification, result in cheaper postage for sending goods from China to the U.S. than for domestic shipping within the U.S. This situation advantages Chinese merchants and disadvantages U.S. ecommerce businesses, highlighting the need for a fairer international postal system.
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