[QUOTE 4725593, member: 76"]I am not an economist, although I have read Freakonomics, but can someone explain the economics behind some of the Chinese sellers on
ebay?
I have purchased quite a few items from such sellers, most notably........
a small backpacking stove, identical to a Vango one, but instead of an average of £19.99 in the UK, it was delivered from an address in Hong Kong for £2.89
a ukulele strap, delivered from Beijing for £1.49
my most recent purchase last night and was a Baofeng UV 5R radio, they are around £25ish+ p&p from the UK (you may find one cheaper, but there are plenty more expensive). This will be
delivered (including p&p), again from China, for...........£4.99
If I want to send a similar sized parcel to China, ParcelForce will charge £40.35

I know there is a chance it won't arrive, but for a fiver I am happy to take the chance, everything else has always arrived though.
So how can they send a radio with a retail of £25, in a package that could cost £40 (£65) for £4.99

[/QUOTE]
It varies a lot depending on the goods and the location of the supplier but P&P for Chinese exporters is heavily subsidised
Generally speaking the Chinese manufacturers that you are dealing with direct operate on low margins, typically 20%. Compare that with a Western manufacturer usually will be at least 40% and then that is to a distributor/retailer who will then apply their own margin too
Stuff will often be described as "samples" or whatever on the import documentation so as to avoid our VAT