A few days ago, the United States launched the process of withdrawing from the Universal Postal Union. It is reported that if the new agreement cannot be reached with the Universal Postal Union in the coming year, the United States will officially withdraw.

Since the establishment of the Universal Postal Union, the principles of developed countries have been followed in support of international exchanges in developing countries. For example, the United States Postal Service has to provide some freight subsidies for parcel shipments from developing countries to the United States.

However, with the rise of e-commerce, especially after the cross-border e-commerce has become more and more prosperous, a large number of daily consumer goods such as textiles and clothing are transported from developing countries to developed countries such as the United States at a lower rate in the form of postal parcels, which leads to the United States. Domestic merchants noticed the contrast of this subsidy and began to oppose this mechanism.

Then, if the United States withdraws from the alliance, what impact will it have on the textile and apparel industry? How should domestic sellers respond?

How much will domestic companies be affected?

Some experts predict that for those cross-border e-commerce sellers who have already built their own overseas warehouses and used third-party logistics companies, the price increase of USPS may not affect much. However, for small and medium-sized sellers who use postal delivery, the impact of logistics cost increases is not small.

At present, many cross-border online shopping apparel products use multinational postal services in the delivery process. This part of the express delivery business mainly comes from small and medium-sized e-commerce and manufacturers that use cross-border e-commerce platforms. These companies generally sell scattered, no overseas warehouses, usually out of the international postal parcels, and postal parcels can go directly to the express declaration channel, no need to declare.

Statistics show that the withdrawal of the United States from the Universal Postal Union will result in 40% to 70% postage discounts for small and medium-sized e-commerce and manufacturers using international postal parcels. The ratio of logistics costs to the total cost per transaction may increase to 40. % is even higher, which will cause a big blow to it.

A number of e-commerce and textile and apparel business owners expressed their views and listened to what they said:

 Fujian

“Quanzhou's superior products, footwear, apparel and other exports to the European and American markets account for more than half of the total export volume. The postal service is an important logistics method. The impact of the U.S. withdrawal from the UPU on local cross-border e-commerce is enormous. It is said that the impact on the low-price unit price is particularly large, and the freight ratio will increase significantly in the whole cost structure.” The relevant person in charge of the Fujian Quanzhou Cross-border E-commerce Association said.

Guangdong

It is understood that most of the products sold by cross-border e-commerce are products with fierce competition in the market such as clothing, shoes, bags, cosmetics, etc. In order to attract customers, the postage of goods is usually paid by the seller.

A seller who has been engaged in the sale of clothing across the country in Guangdong has said that although the international postal system has a long transportation time, the transportation cost is low. For small-volume goods, the increase in postage will increase the seller's logistics costs, and the seller's income will be significantly reduced.

He believes that if the United States withdraws from the Universal Postal Union, it must look at the pricing power of domestic small and medium sellers, which will test the seller's comprehensive competitiveness and operational skills. However, the increase in the cost of this part of the logistics will also be passed on to consumers. "Our profit itself is not high. If the logistics cost is increased, it will also be reflected in the price of the goods, which is shared by the local consumers in the United States." The seller said.

Zhejiang

A person from Ningbo, a small manufacturing company that mainly produces shoes and hats, said that about half of the cross-border export goods of enterprises are sent through postal international parcels. If the United States really “retreats”, the export business of enterprises will be directly Suffered from the impact.

He told reporters that there are two main ways to send goods to the United States. One is to direct mail through postal parcels. In addition, in order to enhance the customer's experience, the company also sends containers to Amazon's overseas warehouses so that customers can receive the goods as soon as possible. He believes that This is also a development trend in the future.

Shandong

“We are now shipping through overseas warehouses, and the proportion of self-delivery is almost very small.” A person in charge of international business of home textiles in Gaomi, Shandong, said that since 2012, the company has established overseas warehouses directly in the United States. After the goods are sent to the overseas warehouse through the sea, they are sent to the consumers through the local express delivery in the United States. Even if the United States really "retreats", it will not have a particularly large impact on the company's business.

He said that in the future, enterprises will transform and produce high-tech products. Although the initial investment is more energy, as time goes on, product profits will increase and more competitive advantages will be accumulated.

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