The abbreviation " VPN " has slowly become established among average Internet users, which is certainly good, but the problem is that people have started to see VPN as the ultimate solution to all problems.
So far, you've probably at least heard of buying from China, if not read all the articles I've written on the subject, but you may not understand why shipping is free?
The package crosses half the world and we don't pay anything ?! How? Where are the earnings for the seller, since the price of the product is already very low? Well, for God's sake, when we send a package within Serbia, we pay for something, and it arrives from China by ship and various trucks for free.
I once bought an OTG connector on sale for a test that cost only 3 cents, and I had free shipping! In addition to all that, the package had some tracking code (which is otherwise charged extra). How, why?
In fact, it is not a secret, and the answer in a few words would be: delivery is included in the price.
However, this is not the end of the story, it is actually quite complex, and I will try to explain it as short and simple as possible.
You pay the shipping costs through the price of the product
Normally, free delivery is a trick used by sellers on all sides, but even so, it is impossible to "put" the price of delivery in the price of goods when the goods themselves cost a few cents?
The price of the product is actually much lower
If you see that, say, a USB lamp costs $ 2, count on the fact that it actually costs the seller less than $ 1. We know that China is the largest factory in the world, for wholesale products, the price of the final product is cheaper than the material from which it is made. That is a price reduction.
The second is in the form of cheap shipping from China
The Hong Kong Post has low prices for sending small packages because they have automated processes so costs are minimal. In addition, an additional discount comes in the form of sending multiple pieces in one package.
Big sellers on Chinese sites send hundreds, thousands, of products a day, all of them together to close destinations. This further reduces the cost of shipping, ie the cost of delivery.
Another reduction in the price of delivery is in the form of the use of internal tracking of the shipment (I mentioned in the third paragraph of this text), and not the global one. This means that you can only track the product while it is in China but not when it leaves that country. Some sellers charge an extra cent if they want global tracking. I wrote an article so take a look.
In addition to all that, the states have agreements with each other, so delivery is even cheaper, that is. Universal Postal Union (UPU) has created prices for the so-called "Terminal dues".
This essentially means that states have to pay each other for incoming mail deliveries. The formula for calculating these costs is a bit more complex but it essentially helps developing countries by reducing their costs and increasing them by developing ones. That is why it is much more expensive to send a package from America to China than vice versa. However, China should move from the status of a "developing country" to a "developed country", so the price for terminal costs will jump, which will affect the prices of the goods they send.
Another assumption is that the Chinese government subsidizes mail, but I have not found a valid source for that. Somewhere it says that it is not true, and some claim that it is. If you have a reliable source, write in the comment.
For the end
When we reduce all those prices through these steps that I have listed (although there are still some, I do not go into politics, economics, etc.), we come to the conclusion that the seller certainly makes money even when delivery is "free" for us. Of course, we have been waiting for shipments from China for several weeks, but how much we (don't) pay is good for us to receive packages.
Be sure to check out the other articles I wrote on buying from China:
How to buy from Chinese sites (Aliexpress, DX, GearBest...)
How to track shipments from China? (Aliexpress, DX, GearBest…)
How to save extra on the Aliexpress site?
GearBest - ordering, payment, customs
Sources:
shops-in-china.com
washingtonpost.com
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