Trump about to kill China - U.S. dropshipping

Dracule · Sep 17, 2018

This is far worse then any tariffs could get for us. Trump has put his eyes on chinese shipping rates. It looks like it's already certain that it will happen soon.

Sources: https://www.scmp.com/comment/insight-opinion/united-states/article/2164172/going-postal-how-donald-trump-threatening

https://www.ft.com/content/876bc3ec-aadb-11e8-8253-48106866cd8a

What are your opinions on this?

SOCOM · Sep 17, 2018

Even though I'm in dropshipping, this is exactly what Trump should do. USPS gets absolutely screwed by Epacket and the US taxpayer has to foot the bill. On top of that, it hurts small American businesses who then can't compete. Makes perfect sense even though it might upset dropshippers.

InstaBen · Sep 17, 2018

Oh no, dropshipping's one flaw is about to be exposed.

Dracule · Sep 17, 2018

everythingred said:
Even though I'm in dropshipping, this is exactly what Trump should do. USPS gets absolutely screwed by Epacket and the US taxpayer has to foot the bill. On top of that, it hurts small American businesses who then can't compete. Makes perfect sense even though it might upset dropshippers.

It is really unfair (edit: I mean unfair for local businesses and taxpayers), that's what made dropshipping profitable. I always found it silly that shipping from China to the U.S. only costs a fraction of what it costs to send a package within the U.S.. I'm still really sad that it will be over soon.

jazzc · Sep 17, 2018

Just a warning to anyone who thinks about jumping in with the intention to ruin this thread - don't make it political or else.

The topic is very interesting and impacts many - it would be a shame for us to have to close the conversation.

SOCOM · Sep 17, 2018

Dracule said:
It is really unfair, that's what made dropshipping profitable. I always found it silly that shipping from China to the U.S. only costs a fraction of what it costs to send a package within the U.S.. I'm still really sad that it will be over soon.

It's unfair? I think it's more unfair that the taxpayer, USPS, and small businesses get screwed. You might be sad, but this will help more people and businesses in the US then a small portion of dropshippers who get to exploit the system.

How is it fair that the US is essentially footing the bill for China to get paid, thus killing US business?

As someone in the dropshipping niche, I know the clock is ticking. I'm not mad at Trump at all. I would do the same thing if I cared about my country's economy.

high mike · Sep 17, 2018

everythingred said:
It's unfair? I think it's more unfair that the taxpayer, USPS, and small businesses get screwed. You might be sad, but this will help more people and businesses in the US then a small portion of dropshippers who get to exploit the system.

How is it fair that the US is essentially footing the bill for China to get paid, thus killing US business?

As someone in the dropshipping niche, I know the clock is ticking. I'm not mad at Trump at all. I would do the same thing if I cared about my country's economy.

ah finally somebody in the business who isn't greedy

Dracule · Sep 17, 2018

everythingred said:
Even though I'm in dropshipping, this is exactly what Trump should do. USPS gets absolutely screwed by Epacket and the US taxpayer has to foot the bill. On top of that, it hurts small American businesses who then can't compete. Makes perfect sense even though it might upset dropshippers.

everythingred said:
It's unfair? I think it's more unfair that the taxpayer, USPS, and small businesses get screwed. You might be sad, but this will help more people and businesses in the US then a small portion of dropshippers who get to exploit the system.

How is it fair that the US is essentially footing the bill for China to get paid, thus killing US business?

As someone in the dropshipping niche, I know the clock is ticking. I'm not mad at Trump at all. I would do the same thing if I cared about my country's economy.

That's what I meant, it's extremly unfair for taxpayers and small businesses. It's impossible for any business to compete with chinese prices AND free shipping.

lacifitra · Sep 17, 2018

Finally all those Dropshipping Guru videos on YouTube can stop.

WorkingNow · Sep 17, 2018

Honestly drop shipping from china is a terrible business(for several reasons), if your not bringing in product by the container or launching with fast iteration in mind your missing out

KHR · Sep 17, 2018

Ahh, Seems it's bad luck for me. I am just starting...

Brighter Faster · Sep 17, 2018

Can someone explain why did the epacket thing exist in the first place?

Presumably the USPS had some rationale for this other than to help out Chinese manufacturing and us dropshippers.

It seems like a completely baffling service for them to lose tons of money offering.

lewwy789 · Sep 17, 2018

I wish the UK would sort our postage imbalance with China out. It's cheaper postage from China to UK than to ship anywhere from UK to the Uk.

jazzc · Sep 17, 2018

Brighter Faster said:
Can someone explain why did the epacket thing exist in the first place?

Presumably the USPS had some rationale for this other than to help out Chinese manufacturing and us dropshippers.

It seems like a completely baffling service for them to lose tons of money offering.

I'll try to answer this but this is an incomplete answer because the complete one is tangled with politics. So here goes:

The USPS isn't the one who sets the prices for incoming international mail (ePacket) - they don't get to decide what to charge. The prices are set by an agency of the united nations, called UPU (united postal union). Every four years, they meet up and vote for the rates. There's a treaty that binds USPS to that and there you have it.

SOCOM · Sep 17, 2018

high mike said:
ah finally somebody in the business who isn't greedy

If I participated in dropshipping, I'm not a saint. I put money in the pockets of these Chinese sellers. I just made a little bit of money before the loophole got closed. It was a stupid loophole.

Brighter Faster said:
Can someone explain why did the epacket thing exist in the first place?

Presumably the USPS had some rationale for this other than to help out Chinese manufacturing and us dropshippers.

It seems like a completely baffling service for them to lose tons of money offering.

It's because of a United Nations mandate. The US has been plagued with bad trade deals and leaders who were unable to effectively stop them. Without trying to be political and just comparing, Obama had asked for other nations to increase their NATO spending and they ignored him. Without a plan on how to tackle the trade deficit with China, how are you going to tackle the epacket problem? The current administration wants to end it, let's see if it happens but they've had a good track record so far.

TrueCrypt · Sep 18, 2018

What seems to be escalating into a trade war between China and the US, with the latter just firing up a new set of imposed tarrifs on Chinese goods, will highly likely impact dropshippers too. (AliExpress/China -> USA market)

The new set of tarrifs will take effect on September 24th. Check this list and see if you find any products included that are part of your dropshipping business and prepare to adjust:

https://ustr.gov/sites/default/files/enforcement/301Investigations/Tariff List_09.17.18.pdf

https://www.bbc.co.uk/news/business-45555749

imagepad · Sep 18, 2018

If you're a shopify dropshipper most of the apps will let you know when prices increases, but yes that's important information for dropshippers.

MisterF · Sep 18, 2018

Merged these threads.

I have to say, anyone looking at just starting out in drop shipping may need to really keep an eye out on any new developments.

mystralious · Sep 18, 2018

nice, now dropshippers from the usa don't saturate the market anymore and entrepreneurs from other countrys have less competition

HoNeYBiRD · Sep 18, 2018

lewwy789 said:
I wish the UK would sort our postage imbalance with China out. It's cheaper postage from China to UK than to ship anywhere from UK to the Uk.

It's pretty much the same in any developed country, free or very cheap shipping from China and a lot higher domestic or international rates.

Trump about to kill China - U.S. dropshipping

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