Quote:
Originally Posted by crazyjr
I think it's because of bulk shipping, where to fill orders of 2,4,20 or whatever, it might be about the same to ship hundreds. Just a possibility
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When shipped via sea you normally buy ''a place on the ship'' lets say a container. Whether that container is empty or half full will not make a lot of difference I agree.
But here's how it looks for HK in terms of costs (with made up numbers of course):
Production in Asia : $50
Selling : $10
Shipping : $0 (because we customers pay for that)
Total cost : $60
However, when they sell in the US:
Production in Asia : $50 (the same)
Shipping to US : $15 (additional costs)
Selling : $10 (the same)
Shipping : $0 (because we customers pay for that)
Total cost : $75
HK has to execute and pay for an additional product movement (shipping from Asia to the US) so it will cost extra no matter what. When looking deeper there are more additional costs. For example employees in the US will most likely earn more than employees in Asia. There are a ton of additional costs for US, buying and maintaining the warehouse, setting up IT there etc etc etc.
blueb8llz, enjoy them, I enjoy mine
