Dramatic new developments on the problem of terminal dues

Terminal
dues? What are these again? And what do I need to know? Good question, please
see our previous article on the subject and
a more in-depth look on how terminal dues helped to create the e-packet. You
are probably quite familiar with the e-packet from shopping online, E-packets
cover a wide array of consumer goods all weighing 4.4 pounds or less, shipped
from overseas markets like China and when it arrives in the US it is treated
like your typical piece of first-class mail. It’s an economical way for
overseas manufacturers and retailers to tap into the lucrative US consumer
market. Inexpensive goods delivered right to your door, sounds like a big win
for US consumers, right? Well, it sounds good on paper but not so good in
practice.

The
problem with e-packets is twofold, it has given a huge competitive advantage to
overseas sellers who pay pennies on the dollar to ship, while simultaneously causing
the United States postal service to lose money on virtually every package
delivered. The USPS has no control over how these terminal dues are calculated,
so they have no choice but to raise rates for all other services to cover their
losses. That inexpensive e-packet item has a hidden price tag that you may not
realize, and it costs you money every time you ship or receive a package. The
Universal Postal Union is the governing body in charge of setting these
terminal dues; they determine the fee paid to carriers like the USPS for each
of these e-packets that get delivered. Attempts at reforming the program have
been slow at best, and the issue has finally made its way to the United States
Oval Office, and the decision was made just this week to pull the plug. The
United States intends to pull out of the Universal Postal Union agreement
within one year and plans on negotiating new treaties on a case by case basis.

The
effect this will have on online retail cannot be fully understood at this
point, but it will be massive, and it’s also pretty evident that the e-packet
will soon be a thing of the past. There are winners and losers in every battle,
and those standing to gain the most from this decision are domestic sellers and
the USPS. Domestic sellers expect to see a mass exodus of overseas sellers
pulling out of marketplaces like eBay and Amazon. Some may remain and simply
increase their prices to compensate, but they are no longer operating with that
competitive shipping advantage. This means less competition for domestic sellers,
but what else does it mean? Simple, more visibility! Take a few hundred
thousand sellers out of the mix with their millions of SKU’s, and this means
more visibility and more sales going to domestic sellers. The USPS also stands
to benefit greatly, if the costly e-packet were to vanish they could actually
start to see profits again and not need to increase rates every year to cover
their costs. That’s a big win for everyone using the USPS.

Now
the not so lucky are the sellers specializing in unbranded or private label
items shipped directly from international manufacturers utilizing e-packets.
You have some time but you need to take a serious look at the market before
making further investments. Now is the time to diversify your product mix
with recognizable name brand merchandise.
Sellers, the playing field has been leveled so let’s get back to the
game. At Foxliquidation.com, you
will find an array of wholesale designer lots which include clothing, shoes,
bedding, general merchandise and health & beauty.

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