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ELI5: Why can a Chinese company ship me an eBay purchase for $1.06 including the product, when it costs me a minimum of $1.97 to ship something across town in the U.S.???

Just in case you think I'm exaggerating - here is a current link: http://www.ebay.com/itm/5x-Converter-Presta-to-Schrader-Bicycle-Bike-Valve-Adaptor-Tube-Pump-Tools-NIGH-/131157626899?pt=LH_DefaultDomain_0&hash=item1e899a9013

EDIT: I understand that they pay less for postage in China and ship in bulk, and that they may be subsidized by their government, BUT it costs time, money, and fuel for the USPS to deliver the item once it hits our shores, so why aren't Chinese charged the $1.97 minimum?

It's the opposite of a tariff, it's an incentive to export to the U.S. and undercut domestic sellers/manufacturers, with U.S. tax dollars subsidizing delivery!

submitted by MoleyVoley to explainlikeimfive
[link] [691 comments]


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