E-commerce will take a hit amid USPS suspension of international packages from China, HK

E-commerce platforms will face a huge impact due to the United States Postal Service’s recent suspension of international packages from China and Hong Kong, said Hong Kong Shippers’ Council chairman Willy Lin Sun-mo.

Lin said many exported Chinese e-commerce products have been processed by mainland or Hong Kong postal services and shipped worldwide. 

He said USPS suspension of packages from both places will seriously affect e-commerce platforms, as some goods may be stranded in Hong Kong, leading American consumers to request refunds for undelivered products.

Lin said that e-commerce businesses can opt for large international courier companies to send their goods to the US instead.

But he said this option could be 50 percent more expensive, with a more complicated customs process leading to delays of several days.
So Lin said if citizens urgently need to send packages to the US, they will have to rely on these large couriers, which are also likely to take longer for delivery.

At the Tsim Sha Tsui Post Office, a resident returning from the US had her plan to send snacks and medication rejected, citing the sudden measure might be due to political tensions and the trade war between China and the US.

She noted that courier services are two to three times more expensive than the Hongkong Post as she hopes for a quick resolution to minimize impact on citizens. 

Another resident, who often sends documents to New York, found it inconvenient when informed that parcels over 500 grams cannot be sent.

According to Bloomberg, Washington is cracking down on a loophole that retailers like Temu and Shein have used for years to expand in the US, allowing them to ship high volumes of small packages and gain an edge over competitors like Amazon.com Inc.

Critics say the flood of parcels from China is difficult to track and may contain illegal or dangerous goods.

The total volume of de minimis shipments into the US hit 1.4 billion packages in fiscal year 2024, according to US Customs and Border Protection, about double the number in 2022. Discount online retailers like Temu and Shein contributed significantly to the spike in volume.

However, disruptions from the USPS move may be more limited now than it would have been in previous years, as other operators have taken over the postal service’s role in handling cross-border lightweight e-commerce packages, including those from China, according to a US Office of Inspector General report in May 2023.

Cheng Wong and Bloomberg
 

Read more:
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