Chinese Cross-Border E-Commerce Firm Downplays Impact of US Postal Treaty Pull-Out
Tang Shihua
DATE:  Oct 19 2018
/ SOURCE:  Yicai
Chinese Cross-Border E-Commerce Firm Downplays Impact of US Postal Treaty Pull-Out Chinese Cross-Border E-Commerce Firm Downplays Impact of US Postal Treaty Pull-Out

(Yicai Global) Oct. 19 -- A Chinese cross-border e-commerce platform has played down the impact of the US government's withdrawal from the Universal Postal Union despite concerns it may lead to higher shipping costs to the states.

The withdrawal from the treaty is not expected to impact business at Top E-Commerce, the Taiyuan-based firm said in a statement. The company's GlobalGrow E-Commerce unit sends almost all deliveries to the US through a self-built logistics system as well as via couriers while the amount of goods sent through via post systems accounts for less than 1 percent of total outbound shipments. Therefore, an increase in shipping costs is unlikely to hit the firm hard.

Shenzhen-based Patuoxun Network Technology, another wholly-owned unit of Global Top E-Commerce, mainly uses Amazon for cross-border deliveries via the US firm's overseas warehouses. This operation also bypasses the China Post system so it will also avoid the repercussions of the treaty withdrawal.

The US government's move may reduce the competitiveness of small and medium-sized cross-border e-commerce companies that are dependent on the UPU, which will benefit leading enterprises with self-built logistics systems.

 

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Keywords:   Cross-Border E-Commerce,U.S. Government,Universal Postal Union,Global Top E-Commerce