UPU reforms were 6 years ago. EU/NA local posts hasn't been subsidizing PRC shipments for awhile. PRC volume vendors dispatching from local warehouses now, they simply sorted out their logistics from mainland to bulk/volume air freight to warehouse to private delivery for last mile to be more efficient than shipping within EU.

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JasonADrury 17 hours ago | parent [-]

Except shipping from China really isn't cheaper than shipping within EU. You just do it from a reasonable hub, or get a third party to handle this for you.

Look at how The Hut Group handles logistics for MyProtein for example.

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maxglute 16 hours ago | parent [-]

>You just do it from a reasonable hub

That's not reasonable condition, hence why EU is systemically more expensive.

THG logistics looks like warehouse->dispatch, i.e. it's for vendors of certain size that can prestock at regional warehouse. Private last mile always fast. But it doesn't address first mile to hub. Can a bumfuck workshop in a hamlet deliver in Greece deliver to warehouse in Poland across multiple jurisdictions for peanuts? My understanding is EU first mile is fragmented/slow if you rely on national post and expensive if you rely on private couriers.

PRC has unified mainland logistics, any sized vendor can get any standard sized item, in any quantity and PRC first mile logistics like Cainiao and JD will consolidate for cheap bulk (air)freight to regional hub where last mile is also fast.

PRC mainland->overseas complex is a system with low first mile + low last mile. EU has no integrated cheap first-mile, which raises price on SMEs, i.e. most of producers.

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JasonADrury 16 hours ago | parent [-]

> But it doesn't address first mile to hub. Can a bumfuck workshop in a hamlet deliver in Greece deliver to warehouse in Poland across multiple jurisdictions for peanuts?

Yes, unless they're doing so at a ludicrously small scale. Sending a 20t lorry load from Thessaloniki to Warsaw will cost less than 6000 euros. I suspect it can be done for around 2400, but I don't know the route very well.

>My understanding is EU first mile is fragmented/slow if you rely on national post and expensive if you rely on private couriers.

Yes, it sucks at ultra-small scale. But that's really what that is. The private couriers have super attractive volume pricing, even 80% off public (consumer facing) rates isn't unusual.

	▲	maxglute 14 hours ago \| parent [-]
		So the answer is really no considering vast majorities of SMEs i.e. 99%+ of EU business operates at "ludicrously small" scale that can't fill a container, i.e. about half of EU internal trade. 80% discount off what base price, because if after 80% discount off high priced EU courier rates and final cost more than one euro, PRC still comes out ahead, i.e. PRC domestic first mile prices are like 20-80 cents per parcel. Unless private EU courier rates are 1-5 euros (they're probably not), they still lose to PRC first-mile. (TBF I'm just assuming EU courier prices, my knowledge more limited to PRC logistics). If that's the case, EU simply can't compete, as in EU systemically not capable of matching PRC price floor. Hence IIRC why EU plan to add flat custom duty per item on Chinese parcels to make them more expensive. Like I'm sure many established businesses factor/absorb higher shipping cost into opex, but ultimately shipping cost/friction affects things like startup formation in first place etc.