How do Chinese sellers afford free shipping?

[oldbazaar]

 It's obviously a very cheap method, as it can take 6 weeks to arrive. The packages have pre-paid labels, some through Hong Kong, some through Singapore, some apparently direct, obviously they are paying something - I've heard they get volume discounts. But even so, when the cost of goods is so cheap, I don't understand how they make any money.

Anyone know?

[pierrelebel]

The Chinese government subsidizes postage costs allowing exporters to mail very cheaply to overseas buyers.

[oldbazaar]

Subsidies, I get, but this is extreme. Free shipping on goods costing 99 cents!

[ricarmic]

Things may have changed but my understanding is that they don't care about the item you bought, they care about the live email address etc that you just gave them when you paid that they can resell.... a few years ago I saw scenarios where they were able to make great money reselling the email addresses they got.....(the seller still gets the email address via the PAYPAL payment)....which is probably what they want....see if you start getting targeted junk mail now, that will be a sign.....if you do, let us know, it would be interesting to know if this is still the case....

[recped]

How/Why?

1 - postage is dirt cheap

2 - 99 cent trinkets cost pennies

3 - cheap way to acquire the name and email of a proven buyer*

*I buy some of this cheap stuff from China, every time I buy something I get on another email list offering me tens of thousands of items, anything from cheap Dollar trinkets to electronics worth hundreds. Paying a Dollar or two in eBay fees and other expenses is CHEAP advertising to get a qualified buyer. It's no different than Bell or Rogers giving you a $500 smartphone for free or almost free, the investment pays off big time down the road.

[rose-dee]

Aha!  I was going to hazard this as a wild guess, almost a joke really.  Not surprising though -- the Chinese government is in the business of making China the world leader in commerce, and what better way than to compete with delivery costs? 

I too have purchased a few items (under $30) from Hongkong, and was stunned at the free shipping offered by the seller and the outstanding service: 6 days for a little parcel to cross half the globe.  

[oldbazaar]

I don't get any spam at all, actually, Gmail seems to weed it out, and I've been buying from China for over ten years. 

[bb_cool_stuff]

True Rose.

A couple of years back there were Legit, Fully Stitched, NFL, MLB Jerseys for sale originating from Hong Kong.

Usually five years old & the player was either traded or no longer playing professionaly. Must have been bought in bulk on an end run.

The names of the players that were available were less than ten.

I believe they were just over twenty with free shipping.

[fernsevern]

Each country sets their postal rates and keeps the proceeds (minus any adjustments from reciprical agreements). That is how the UPU agreement works. China etc chooses to keep rates very low in order to increase foreign commerce. Canada chooses to charge high international rates to subsidise domestic postal rates.

[Anonymous]

China OWNS U.S.A. as China looks after US's deficit!!  Scary for Americans!!

China is laughing all the way to the banks plus they can sell their items to Americans at the same time!!

[zorro21c]

I bought a modern kitchen sink tap from Hongkong for $35 plus $12 shipping, the exact model is sold at HomeDepot under differrent brand for $200.  I lost a washer and contacted the seller,  I received it the next day, I really mean it, next day by DHL courrier for free.  How did they do that? it's a mystery.  But don't laugh of low profit.  Most of these guys from the orient are buying up multi million dollars homes in  Vancouver, Canada and Sydney, Australia.

[zorro21c]

Life is full of mysteries and surprises, isn't it wonderfull? otherwise, we have no conversation.  I took may taxi trips  in Hochminh City, Vietnam to the airport, a 25 minutes drive cost me $7,  Most other trips to bars and restaurants were around $1.50, but their people are paying higher gasoline price than us.  How do they do it? you tell me.

[73rhc]

I just see it as an easy way to acquire foreign exchange for nearly worthless trinkets. The new money market strategy.

[tobyshitzu]

True.  Timely (american) article on what postal service is dong the subsidizing for china shipped goods

http://www.washingtonpost.com/news/storyline/wp/2014/09/12/the-postal-service-is-losing-millions-a-y...

first

[art-in-the-making]

The Chinese government subsidizes postage costs allowing exporters to mail very cheaply to overseas buyers.

And Canada should be doing something similar. Greater subsidies could be applied for goods originating or substantially improved in Canada.

The outline of a business plan from the government's perspective would be quite simple. they could turn a sad sack mail order industry into a dynamo and give a boost to the post office in one shot.

---

if our government were able to act strategically in the interests of the country Canada could be more agile than some of these larger countries. As it is the Chinese act more strategically than the rest of the world combined and Canada's actions in general only benefit already wealthy pals of Conservatives.

[art-in-the-making]

Yeah, I hadn't seen the article Toby posted before I posted. It's true what they say- count me among those who have been griping about this for years. Anyway, maybe some more attention from the general public will result in a more even playing field.

[steveo06360]

Well, I have to say I have gotten some fantastic deals on some very good stuff shipped free from China.  Things that would cost 3 times as much anywhere else and would tack on 4 - 10 dollars shipping to boot.  I never buy from Canada because you go to them you get a 3 dollar item with $29 shipping.  Not worth it.  If the Chinese government can afford to give away free shipping then let them.  I will buy the **bleep** out of Chinese goods as long as the shipping is free and the prices are so low.  And as far as them getting my e-mail address. That is more than a fair bargain.  I have an unlimited number of email addresses so they can have one or two of them.  I consider that a bargain.

[marshallcabs222]

What you just stated now makes sense to why I have started receive junk mail from Asia, all from one purchase out of that area. So I guess to answer your question, yes it is still happening.

[2014sportsterguy]

Made in China are cheap through the exploitation of the workforce.

[reallynicestamps]

Yes and no.

If the cost of housing, food and clothing is also cheap for the workers, they are not really being exploited.

China does charge citizens for medical care and for schooling which makes those necessities out of reach for most families.

I like to use the 'loaf of bread' method of calculating foreign exchange.

How many minutes does an average worker have to work to buy a loaf of bread (or a catty of rice for Asians, I suppose)?

At minimum wage a loaf of bread costs a Canadian worker about 10 minutes work. (At 18 cents a minute for a $1.79 loaf of white supermarket bread.)

How long does that 13 y.o. factory worker have to toil to earn her daily ricebowl? (I don't know the answer, but I suspect it is longer than 10 minutes but less than an hour.)