Ever wondered why shipping products from China to the US is cheaper than the other way around?
It isn't a coincidence.
In this guide, you will learn about the reasons behind the low shipping costs from China.
You'll also learn why shipping to China is much more expensive!
6 Reasons why shipping from China is so cheap
For a long time, traders enjoyed lower shipping rates transporting goods from China to the United States.
Although the shipping costs have risen in the last few years, they're still relatively cheap.
Here are six reasons why shipping from China to the US costs less than the other way around.
1. Universal Postal Union (UPU)

The UPU is an international postal organization under the United Nations (UN).
It was established to standardize the international postal system.
The UPU streamlines operations between postal services in different countries, making international postage easier and cheaper.
To reduce the cost of shipping between UN member countries, UPU categorizes nations into several groups based on their level of development and the size of their economy.
In this system, developing economies pay less to have their mail shipped to wealthier, more developed economies. On the other hand, established countries pay more to send mail to less developed countries.
Since China has long regarded itself as a developing economy, it has been able to pay less to ship products to the US, a developed economy.
This changed in 2018 when US President Donald Trump threatened to pull the US out of the UPU unless it was given more control over inbound mail rates.
This explains why shipping from China costs more today than it did 10 years ago but is still cheaper than shipping from the US to China.
2. Economies of scale
China's manufacturing industry is huge.
Thousands of factories around the country create millions of new products for export daily.
Bulk exports allow manufacturers to negotiate lower rates with shipping companies.
Less fees for large shipments usually translate to a lower per-product shipping fee.
3. Government subsidies
The Chinese government understands its role as a manufacturer on the global stage and that exports are its biggest revenue generator.
Therefore, it supports manufacturers by heavily subsidizing export shipping fees to encourage traders to export more.
A shipping fee subsidy is money the government of China pays shipping companies to keep the prices of shipping products going outside the country low.

Due to subsidized shipping fees, foreigners buying goods from China pay less to ship products.
Meanwhile, sellers in China get access to a large international market.
It's a win for everyone!
4. Lower labor costs
China's cost of living is much lower than developed nations like the US.
Accordingly, labor costs are low, which enables Chinese businesses to keep their production costs lower than their competition in the US.
This effect is also present in the Chinese shipping industry. Due to significantly reduced operating expenses, shipping companies can offer low shipping rates.
5. Competition
7 out of the 10 busiest ports in the world are Chinese.
Additionally, Chinese shipping companies produce over 96% of the world's shipping containers and own over 80% of ship-to-shore cranes.
These figures are great indicators of the sheer size of the Chinese shipping industry.
With that level of competition, pricing has to be competitive to acquire new customers, adding to the list of factors that make shipping from China to the US cheap.

6. Established global shipping routes
China has three established shipping routes connecting it to the rest of the world: the Pacific Ocean, the Indian Ocean, and the Atlantic Ocean.
Established routes allow Chinese shipping companies to ship goods frequently through these routes.
In addition to the established routes, multiple shipping companies compete to offer the best prices, further reducing the fees incurred per product.
Comparing shipping from China vs. shipping to China
Shipping a product from China is usually the easy part.
It's also a great motivator for starting a dropshipping business.
However, dealing with returns can be a nightmare because returning products to China is neither easy nor cheap.
Here's why:
Higher export volume from China compared to imports
China is an established manufacturer of nearly anything you can imagine.
And for this reason alone, it doesn't import as much as it exports.
Worse, it doesn't source most of its imports from a single nation.
This, combined with the UPU's policies, makes shipping to China costlier than the other way around.
In some cases, the cost of returning a product to China can exceed the cost of the product!
Empty return shipments and their impact on cost
If China sends out more containers than it receives, the implication is that most shipping containers and vessels must return to China empty.
Shipping empty containers is costly because there is nothing to gain from it.
Additionally, you don't have the benefit of economies of scale that you have when shipping to the US from China.

Differences in import/export tariffs
Since President Trump threatened to pull out of the UPU in 2018, a trade war ensued between China and the US.
In a trade war, one country raises its tariffs on goods imported from or exported to another.
When tariffs increase, shipping companies usually pass the additional costs to the buyer and seller by increasing their shipping fees.
Therefore, China's tariffs on US goods are another reason you might have to pay more to ship to China.
All in all, if you're in ecommerce or dropshipping, be aware that handling refunds and sending them back to China can be more expensive than the other way around!
Summary
Before we go, we've created a quick summary of this article for you, so you can easily remember it:
- Overall, shipping goods from China to the US is cheaper than the other way around.
- The UPU, economies of scale, government subsidies, low labor costs, competition, and established shipping routes are major factors that lower the cost of shipping goods from China to the US.
- On the other hand, low imports from America, empty return shipments, and differences in import/export tariffs cause high shipping prices to China from the US.
Conclusion
As a dropshipper, you want the best profit margins without overcharging your customers.
China gives you the best chance of staying profitable with its cheap products and low shipping fees.
However, if your supplier is in China, you must take measures to handle returns.
The supplier may not accept returns, and even if they do, sending items back might be too costly. So, you'll need to devise a way of handling returns.
Want to learn more about dropshipping?
Ready to move your dropshipping store to the next level? Check out the articles below:
- 24 Best High-Margin Products to Sell Online (For 2025)
- How to Get Faster Shipping on AliExpress (6 Amazing Tips)
- How Do Dropshipping Sites Offer Free Shipping Worldwide?
Plus, don’t forget to check out our in-depth guide on how to start dropshipping here!