The reason Amazon and Ebay are having 2 straight bad days is because of the huge USPS rate increase for international shipping. It's incredible how uninformed the business analysts are to not know what an effect this will have on ebay stock. Ebay stock holders might have no clue of the potential negative effect this might have on Ebay's revenues. For packages under 4 pounds, the post office is raising rates on all countries of the world by about 40 or 50%. It's an outrageous price hike and is sure to discourage millions of potential sales. Non- U.S. buyers will definitely be buying less and less from Americans and tons of American seller will stop offering their items to non-U.S. buyers. A $5 item with $13 shipping will now be a $5 item with $23 shipping. So instead of $18 total for a $5 item, it's more like $28 total now. That's an example of why so many non-U.S. buyers will buy much less from U.S. buyers and they mostly prefer buying from America. Tons of sellers are extrememly worried about the loss of sales they see coming.
it cost too much in shipping cross border,, customs inspection fees etc for contra -bands that is the reason it cost more money...border gaurds are inspecting shipments for drugs, guns and other contra-bands. shipped out of the US more paperwork and cost. when custom gaurds get paid $30/hour
The biggest cost of shipping for airlines and shipping companies is the fuel cost or gas. fuel prices is 30-50% more than 2007. and sellers just passing the cost to buyers or they lose money. USPS been hedging fuel prices but the hedge is off. to make money selling on ebay or amazon, you need volume and volume if below breakeven they close down or shut down. you can only operate a business for so long and keep losing money before the cash runs dry. you have sellers on amazon selling stuff that are like 50% more in price gaps.