Quote:
Originally Posted by burnafterreading
first, electronic goods don't cost more than a fraction of a penny to send either next door or across the globe.
physical goods cost a bit to send, but the cost of shipping a widget has little to do with the selling price of the widget (we're talking bulk transport from factory to distribution, like for example Gibson guitars being shipped to the AU distributor). shipping from the USA to Hawaii is typically just as costly as to AU, since they're both just as far away and across an ocean. but few things are made in the USA anyways - now it's all mostly made in China. from China, shipping to USA is just as far and "complex" as shipping to AU.
so, why does it cost more in AU than in USA to buy the same made-in-China product? because it CAN be priced higher. basic business: maximize your profits...
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I agree with this. As an example an acquaintance of mine here in NZ manufactures, imports, and exports from his business. He has both a local physical manufacturing and sales to the public facility and also sells online. I cannot name the product I will use as an example as it will identify him (he being the main supplier here) but...
He imports it from a country in Europe, pays for the shipping half way around the world and finds that he gets internet orders for that product from the same European country that he originally sourced it from. Apparently his price is cheaper than the retail price in the source European country despite the fact that he has the freight cost from and then back to Europe to absorb. It is not a cheap little thing to freight, typical shipping weight is close to 200kg (440LB)!!!
His price is set by his local market, the sale price in Europe for European sellers to the public is set in that market. His price is cheaper.