Digikey absurdity? - Page 1
Forum section: electronics / general

author: MuTeD
author_rank: Contributor
timestamp: January 02, 2015, 08:12:22 pm
content: So digikey offers free shipping on orders over $100 to europe (where I live). Great! So, I'm in the US for holidays and I figure, I should probably buy it here, that way I don't need to deal with customs and shipping should be faster. WRONG!! it costs me over $20 in shipping!!! So I talked to two sales representatives and they have confirmed this! Buying stuff on digikey and having it shipped to europe is cheaper than having it shipped to the US! (assuming no issues at customs and an order over $100) Where the heck is the logic in that or am I missing something? Why would anyone inside the US use digikey then? I have also found the prices of Mouser and Farnell to be better. The only thing I can think of is that they have a large selection but generally I find everything on Farnell and Mouser.

author: dannyf
author_rank: Super Contributor
timestamp: January 02, 2015, 08:36:16 pm
content: QuoteLarge selection, and speedy delivery. Pretty much whatever you want, there is a way for them to get it to you on your desk next morning.You do pay quality prices for quality services.

author: mikeselectricstuff
author_rank: Super Contributor
timestamp: January 02, 2015, 08:37:44 pm
content: They have more competition in Europe, which may be a factor.

author: devanno
author_rank: Regular Contributor
timestamp: January 02, 2015, 08:57:58 pm
content: I can't recall what, but there were some parts I could only find at Digikey, but then the same has been true that I could only find certain things at Mouser. I suspect that the competition factor as suggested above is driving this.

author: edpalmer42
author_rank: Super Contributor
timestamp: January 02, 2015, 09:16:56 pm
content: That seems very odd.Digikey shipping to Canada is a flat $8.00 for any 'normal' order. Unusually big or heavy orders would be more.Ed

author: MuTeD
author_rank: Contributor
timestamp: January 02, 2015, 09:18:02 pm
content: Ok so yea, I expected it to be more of a business decision as in "we will charge for shipping in the US because we can" since it doesn't make sense in any other way. I thought Mouser was pretty active in the US too? I didn't expect there to be less competition in the US though, if anything I thought there would be more. Indeed, there might be the occasional component you can't find anywhere else but in general I see no reason to use digikey. I get mouser delivered 2 days after I ordered it with free shipping. Farnell is a different story, can't be in a hurry when ordering from then. =)

author: MuTeD
author_rank: Contributor
timestamp: January 02, 2015, 09:19:04 pm
content: Quote from: edpalmer42 on January 02, 2015, 09:16:56 pmIt is odd, that's the reason I'm asking =). I talked to two sales representatives and they both confirmed it.

author: pickle9000
author_rank: Super Contributor
timestamp: January 02, 2015, 10:05:58 pm
content: Shipping rates are often related to a deal the vendor makes with a courier. Then they pass that on to the customer. Normally these "deals" come up for review by the courier if they fail to meet minimum limits.

author: Corporate666
author_rank: Unknown
timestamp: January 02, 2015, 10:16:56 pm
content: Quote from: MuTeD on January 02, 2015, 08:12:22 pmI really don't understand the complaint. Shipping isn't free anywhere since all shipping companies charge for their services. Digikey may choose to subsidize the cost of shipping to Europe for whatever reason, but that doesn't mean that charging for a service which costs money to provide is somehow unreasonable as it appears you feel.As for why anyone would use Digikey - they are by far the best distributor, IMO. You can order by 9pm EST and it's gauranteed to ship same-day. They have a lot of stock, and they are usually the cheapest provider on most parts. Off the top of my head, compare LXM2-PL01-0000 or ATTINY13A. Digikey is cheapest. Mouser is equal on some stuff, and on a few parts Avent or Arrow may be lower - but it's rare. I keep spreadsheets of all my BOM's with prices from all the distributors, and the vast majority of the time, Digikey is cheapest on most stuff - with Mouser cheaper on one or two items.By the way - Mouser, Newark, Avnet, Arrow, Future and all other distributors charge to ship also, so Digikey's shipping fee isn't a detraction at all. And $20 is quite a lot - since Digikey charges actual rates, it must be either a 3-day or 2-day shipment, or a package weighing several kilos - which would probably be quite an expensive lot of electronics. And in such cases, who cares about $20 for shipping when you're spending hundreds or even a couple thousand on the parts, especially if all other sellers also charge for shipping?

author: netdudeuk
author_rank: Frequent Contributor
timestamp: January 02, 2015, 10:38:21 pm
content: Let's see face it. This must be the only time ever where the Brits don't get hammered big time when compared to what our friends in the USA have to pay.

author: zapta
author_rank: Super Contributor
timestamp: January 02, 2015, 11:21:37 pm
content: Quote from: netdudeuk on January 02, 2015, 10:38:21 pmNo VAT on digikey orders?

author: Macbeth
author_rank: Super Contributor
timestamp: January 02, 2015, 11:28:04 pm
content: Quote from: netdudeuk on January 02, 2015, 10:38:21 pmYou want to see how the USA corporate oligarchs and paid shill politicians and insiders working at the FCC have been stitching up the broadband market then. It's ludicrous how they are doing their best to keep crap internet speeds and the worst customer service on the planet at huge prices, including trying to fuck up Net Neutrality which will affect the rest of the world too. Monopolists like Comcast are in charge over in that "free economy" USA. Yeehaw!I feel hard done by our incumbent telecoms/cable/sat/phone companies in the UK, compared to South Korea or Romania, but it's nothing like the USA. It is even illegal (and I mean criminal - 10 years jail) to unlock a mobile phone over there.

author: Howardlong
author_rank: Super Contributor
timestamp: January 02, 2015, 11:31:25 pm
content: Not sure how it works on personal deliveries these days, but both Mouser and Digikey deliver VAT free to EU companies when given a valid VAT Id.For Digikey that's a fairly recent thing, I used to have to pay duties COD to UPS for deliveries, so it was important to keep track of your delivery and call up to pay duties at the "sweet spot" to get the fastest delivery.Mouser use Fedex to the EU who seem to have had a more streamlined process for some time, even for personal deliveries.

author: Howardlong
author_rank: Super Contributor
timestamp: January 02, 2015, 11:34:19 pm
content: Quote from: Macbeth on January 02, 2015, 11:28:04 pmYeah, get it off your chest why don't you.

author: zapta
author_rank: Super Contributor
timestamp: January 02, 2015, 11:40:19 pm
content: Quote from: Macbeth on January 02, 2015, 11:28:04 pmIt's a horrible place here. You don't want to come.

author: Macbeth
author_rank: Super Contributor
timestamp: January 02, 2015, 11:44:04 pm
content: Quote from: Howardlong on January 02, 2015, 11:31:25 pmFor some reason, no matter the tiny or large value of an item from the USA, it is always 100% without question Dutied & VAT'ed. Even if it is declared at $15 or whatever absurdly tiny duty that is allowed (compare with Daves $1000 AUD on imports to Oz) .I never use UPS, Fedex, DHL or any of those commercial carriers of USA shipments as they have ludicrous handling and invoice fees. Their "fast track" expediting also tends to come up with a 10% Duty when 0% is the proper rate, and so I have to argue with them and get a refund. I always use USPS for stuff from the states, knowing I will be stung for Duty and VAT, but only have to pay £6 or so for the handling.But EVERYTHING that I order from China - it 95% always slips through the customs net. Also, sellers are quite happy to mark $500 of goods as $100 or so on a personal shipment.Quite what business the HMRC has in other countries is beyond me, but the USA are lickspittles while China can just stick two fingers up at the uniformed officious clowns in Heathrow.

author: Corporate666
author_rank: Unknown
timestamp: January 03, 2015, 12:26:27 am
content: Quote from: Macbeth on January 02, 2015, 11:44:04 pmI feel your pain... however I ship a ton of international packages. And I know it sounds rude (it's not meant to), but the very frank answer to the above is... it's not my problem. I have tons of customers in Canada, S. America, all over Europe, Australia and elsewhere. The UK customers are probably the "worst" when it comes to complaining about import fees, customs duty, etc. A lot of them are clearly frustrated by it all - but sales to the UK are a tiny tiny fraction of our business (same goes for almost all companies who do international business, save a few), so it doesn't make sense to jump through hoops to cater to the frustrations of Brits, especially when their problem lies with their gov't, not foreign exporters. I share their frustration - but I'm not willing to lose profit to cater to it when they ought to talk to their legislators about it.Sure, you can ship USPS, but nobody wants to pay for Express Mail, which means if the customer isn't happy with the time it's taking to arrive (which is totally out of the shipper's control) they can simply file a claim with eBay or PayPal, or a chargeback with their CC company, and the seller loses all the $$, plus a $35 chargeback fee, plus they lose the product.

author: Bud
author_rank: Super Contributor
timestamp: January 03, 2015, 05:37:43 am
content: Quote from: AcHmed99 on January 02, 2015, 09:40:14 pmThey switched from UPS to FedEx.In contrary, i began to use Newark more, they often have damn good deals, at Digikey that would cost me twice as much on ICs, and hugely more on passives. But i typically order ICs in dozens and passives in hundreds.

author: netdudeuk
author_rank: Frequent Contributor
timestamp: January 03, 2015, 06:10:38 am
content: C666, it sort of IS your problem. I've heard it said several times that nothing gets through unopened and the handling charges can be severe, especially when compared with the item costs. Maybe we complain the most because we're hit the hardest ? Anyway, the reason I suggested it is your problem is that we more than likely shy away from US purchases (and there's lots on eBay that I fancy) because of the duty. That will be why we're only a 'tiny, tiny' part of your business and that will, of course, hit your bottom line.

author: VK3DRB
author_rank: Super Contributor
timestamp: January 03, 2015, 06:49:55 am
content: The Europeans should not complain so much. If I order a resistor costing a few cents from Digikey, they charge a $34 delivery to Australia. I have complained about the fact they do not have lower shipping costs for tiny, low cost items that will fit in an envelope, but they are not interested in fixing the problem at all. I guess price gouging is part of their profitability game.Alternatively, RS has free delivery and Element 14 has lower cost delivery, but they don't carry the stock that Digikey has.They is little alternative in Australia, as our halfwit short sighted politicians have let our electronics industry decay over many years. There are few real electronics stores left in the entire country and many common parts are simply not available anywhere here - they have to be imported.I have a good friend who left Australia forever for the US because of the sorry state of the electronics industry here. And that was 18 years ago! Best move he ever made career wise.

author: netdudeuk
author_rank: Frequent Contributor
timestamp: January 03, 2015, 07:37:44 am
content: I'm not European. I'm English

author: pk7639
author_rank: Newbie
timestamp: January 03, 2015, 07:50:23 am
content: You're being duped.DigiKey offer (ed) free shipping to Australia on orders >$200 (IIRC) if you ordered through digikey.com.au (or your web account was listed as being an AUD).Somehow I ended up with the option to check out in AUD or USD from the main site.If I load my cart with products > AUD$200 and compare the total CIF cost (exchange rates calculated) between the USD and AUD checkout options, then it miraculously works out USD$35 more expensive to check out in AU$ and get the free shipping..Companies do not (nor should they) give things away for free..PK

author: LabSpokane
author_rank: Super Contributor
timestamp: January 03, 2015, 07:53:41 am
content: First off, US shippers cannot just lie about the value of the contents if shipments. In the US, that's called fraud and people go to jail for that. The US Government is very strict about its citizens engaging in corrupt practices abroad.We have virtually no customs issues importing goods for personal use here. Our customs and importation system works. Aside from military materials and encryption, our Customs system has nothing to do with exportation. Honest.And if the UK has a selective, anti-American bias in how it enforces customs law, that is a 100% UK problem. The US has nothing to do Chinese shipments getting a free pass into the UK.Lastly, if you're not happy with the costs of getting things into your country, quit being such pains in the ass to do business with! Seriously. We're sick of it on our side too, to be perfectly honest.

author: VK3DRB
author_rank: Super Contributor
timestamp: January 03, 2015, 08:19:31 am
content: Quote from: pk7639 on January 03, 2015, 07:50:23 amYou missed the point. Theoretically it is $35 for one 1K 0603 SMD resistor from Digikey. I would rather Digikey charge me the actual shipping costs that is incurred by them rather than price gouging customers or encouraging them to buy stuff they may not want to make the cost >$200.As far as exchange rates go, the party is over. $1.08 was nice for us importers. It is now about 81 cents. Will go to around 70 cents or lower within 12 months.

author: LoyalServant
author_rank: Regular Contributor
timestamp: January 03, 2015, 09:41:27 am
content: Quote from: mikeselectricstuff on January 02, 2015, 08:37:44 pmI can believe it.If I go to Newark/Element14 to order something it almost never fails that what I want or need is "UK stock"That means I have to pay $20 to have it shipped from Britain and it takes 1-2 weeks or I can go to Digi Key and get it within a few days or less for the same amount, and often less.Digi key having virtually everything I need all the time and I think they know it... so you pay for that.Seems they (Farnell/Newark/Element14) have parts well stocked on that side of the pond.

author: andersm
author_rank: Super Contributor
timestamp: January 03, 2015, 01:06:47 pm
content: Quote from: Howardlong on January 02, 2015, 11:31:25 pmWhen ordering as a private person from Mouser, you can pick from several shipping options. If you chose FedEx International Priority, Mouser pays duty and customs fees. With the other shipping options, VAT is paid on delivery. However I believe this service isn't available for all destinations.Going back to the OP's complaint, I'm fairly sure DigiKey at least used to offer free shipping in the US, but only to some states.Quote from: VK3DRB on January 03, 2015, 08:19:31 amHow do you know it's not?

author: baljemmett
author_rank: Unknown
timestamp: January 03, 2015, 05:05:08 pm
content: Quote from: Howardlong on January 02, 2015, 11:31:25 pmDigikey now also include VAT and any applicable duty at point of ordering (at least, for orders placed through digikey.co.uk) - so no swingeing handling fees from the courier or customs delay, because it's all been prepaid. I was pleasantly surprised by how straightforward it was to order from them, considering the usual pain with couriers...(For what it's worth, I haven't noticed any anti-American bias in our customs system - however, Chinese vendors on eBay seem to like to falsify the customs declaration on small packages sent through the postal system, which is probably why they 'slip through' whereas more honest sellers or those using couriers attract attention. The regulars in the IRC channel may remember me grumbling about a shiny lens from Japan getting stuck in Parcelfarce's customs queue for a week, argh! Properly-declared postal packages from any country generally result in a red card asking me to trundle down to the sorting office to pay up, in my experience.)

author: edavid
author_rank: Super Contributor
timestamp: January 03, 2015, 05:28:17 pm
content: Quote from: MuTeD on January 02, 2015, 08:12:22 pmDigi-Key offers free US shipping if you mail in your order with a check (old school). If you're still in the US, ask a friend to write a check for you.

author: mikeselectricstuff
author_rank: Super Contributor
timestamp: January 03, 2015, 06:01:55 pm
content: Quote from: baljemmett on January 03, 2015, 05:05:08 pmYes, ordering from Digikey to the UK is like anywhere else now though there never were any handling fees, just VAT (though the latter was also charged on the nominal value of the "free" shipping)

author: netdudeuk
author_rank: Frequent Contributor
timestamp: January 03, 2015, 06:22:16 pm
content: It's still a whopping £12 shipping fee at Mouser and Digikey for orders less than £50, for me as a private individual at least.

author: cosmicray
author_rank: Frequent Contributor
timestamp: January 03, 2015, 11:27:14 pm
content: Quote from: netdudeuk on January 03, 2015, 06:22:16 pmWhile not trying to defend USPS, I'm looking at the current rates for First Class International Parcels. The rates (Commercial Base, typical for most businesses) are shown here ...http://pe.usps.gov/text/dmm300/Notice123.htm#2521047UK and AUS both are in the price group 3-5 column. The costs of relatively small parcels do click up fast.Even on the best of days, I could not ship a parcel below 2 ounces, and many of them are 3-ounces and up.

author: VK3DRB
author_rank: Super Contributor
timestamp: January 04, 2015, 10:27:17 am
content: Dave, I think it might be an idea if you do a video presentation on the shipping of electronics by companies like Digikey who seem to be engaged in price gouging on shipping. And also comparing with other component vendors. Maybe bad press will help fix the situation.We do have a odd law here, in that any imports under $1,000 per shipment escape the 10% Goods and Services Tax (GST). This makes local vendors less competitive because the 10% GST has to be passed on, but as we don't make electronic component in Australia, tough titties. I don't know how the UK government collects the VAT on eBay purchases, or for that matter anything that is ordered by post.

author: justanothercanuck
author_rank: Frequent Contributor
timestamp: January 04, 2015, 10:40:03 am
content: My last few Mouser purchases (edit: 2013 - apparently I didn't buy any stuff in 2014) were sent Fedex International Priority, seems to be a $20 flat rate. Kindof sucks when you need $10 of capacitors, but it is what it is sadly. If only I had a local shop that didn't sell no-name parts.I know I've sourced parts from Digikey, but I don't think I've ever bought from them.

author: pstemari
author_rank: Contributor
timestamp: January 06, 2015, 09:16:18 am
content: I'd love to see how you get free shipping from Digikey in the US. It's never happened on any of my orders.That said, AFAICT they simply charge back the actual cost of shipping, and give you about 8 different shipping methods to choose from, including providing your account number. Their rate estimates are about 10-15% lower than what it would cost me to ship via UPS through their web site, although Digikey might get a somewhat better discount than that.The unfortunate fact is that shipping small packages is rather expensive unless you're using USPS flat rate packaging or you're under the 1lb mark. Really big vendors can get good rates (one of the few perks of working at Amazon was being able to ship personal rates at Amazon's negotiated rates), but base rates are fairly steep, ridiculously so for international. Retail UPS counter prices, let's not even go there.

author: RJFreeman
author_rank: Regular Contributor
timestamp: January 06, 2015, 10:06:17 am
content: Quote from: LoyalServant on January 03, 2015, 09:41:27 amLast time I ordered from Element 14 they were short 1 x 18V Zener diode which they shipped from the UK and then to me at no extra charge (and I kid you not) Diode circled in red:

author: steve_w
author_rank: Regular Contributor
timestamp: January 06, 2015, 10:38:02 am
content: RJ,I've had that experience with Element 14 in Australia. I have found Element 14 to be consistent with service and if you shop around quite cheap. DK is hellishly expensive for freight so I don't use them.I have seen advertisements for freight forwarders which give an American address and then on post to you. Has anyone used these services?regardsSteve W

author: VK3DRB
author_rank: Super Contributor
timestamp: January 06, 2015, 10:41:54 am
content: Quote from: pstemari on January 06, 2015, 09:16:18 amWho wants "free" shipping from Digikey? I don't. But mailing a letter is damned cheap from the USA to Australia. Mailing a 0603 SMD resistor in an envelope is $US1.10 postage, not $30 dollars. So maybe $2 is more appropriate including handling. Digikey should charge real and fair prices for postage and handling, not ripping electronics people off by price gouging.Fortunately, we do havewww.rockby.com.au. Really cheap prices for Aussies from a terrific family owned business. Service is excellent. Overseas shipping cost is a bit pricey.There is alsowww.dontronics.com. Excellent service and reasonable prices.For service, nothing beatswww.oceancontrols.com.au. I ordered some stepper motor drivers at 4pm once day. They were hand delivered by an employee of Ocean Controls within 45 minutes to my workplace 30 km away, shipped free! He drove across town to get the package to me because it was urgent. It does not get any better than that.

author: edavid
author_rank: Super Contributor
timestamp: January 06, 2015, 04:24:01 pm
content: Quote from: pstemari on January 06, 2015, 09:16:18 amI already explained that... instead of placing an order on the website, you mail it in with a check.

author: HighVoltage
author_rank: Super Contributor
timestamp: January 06, 2015, 04:40:33 pm
content: I am in Germany and I am ordering from Digikey and Mouser on a regular basis. Shipping is always free and fast. Sometimes I place an order on a Friday afternoon and get it on the following Monday. I could not even get it that fast from a German distributor and definitely not for free shipping cost

author: ElektroQuark
author_rank: Unknown
timestamp: January 06, 2015, 06:10:29 pm
content: Free shipping for all orders in Germany? Or there is minimum to buy?

author: Offensive username removed
author_rank: Newbie
timestamp: January 06, 2015, 07:17:09 pm
content: I used to buy stuff on TME but now I prefer markets like Wolumen. I don't like supporting corporations.

author: Red Squirrel
author_rank: Super Contributor
timestamp: January 06, 2015, 11:23:07 pm
content: On similar note, why is it that it's so cheap to order stuff on Ebay from China... often free shipping, yet from the states the shipping is often more than the item itself?For digikey the free shipping for $100 order or more applies in Canada too. No customs either from what I recall. (only made one order there so far)

author: dannyf
author_rank: Super Contributor
timestamp: January 06, 2015, 11:28:02 pm
content: QuoteIt is easy to offer free shipping: I offer free shipping on a 2 ton rock to you, anywhere in the world.As long as I embed the shipping cost in the purchase price.Free shipping isn't exactly free, as you may have learned in middle school.

author: andersm
author_rank: Super Contributor
timestamp: January 06, 2015, 11:47:35 pm
content: Quote from: Red Squirrel on January 06, 2015, 11:23:07 pmA combination of state subsidized shipping,special dealsandinternational agreements.

author: Corporate666
author_rank: Unknown
timestamp: January 07, 2015, 04:37:38 am
content: Quote from: netdudeuk on January 03, 2015, 06:10:38 amI agree, Brits probably complain most because they are probably hit the hardest. I sympathize - have a lot of family there and it's frustrating what they are often charged for imports.But on the "not my problem" - again it's not meant to sound rude at all, but if a region accounted for 0.25% of your sales but 5% of your frustration, you would probably stop selling there, or if not, you'd sell there only in a manner that limits your frustration (like shipping express with full tracking only, etc). It's not like I am going to somehow change UK law... I have no vote there so no politician is going to give a crap what I think. And a much better and easier solution is to just work with an importer - so I still get the sale, but the UK customer pays a lot more for it... problem solved (for me).

author: Corporate666
author_rank: Unknown
timestamp: January 07, 2015, 05:05:35 am
content: Quote from: VK3DRB on January 03, 2015, 08:19:31 amHow do you figure Digikey is "gouging" you? They only ship UPS, and I just checked the UPS website and they quote $124USD for a 1lb package to Australia for their "Saver" service (which is what Digikey uses).Obviously, Digikey gets a big discount on that price and they are passing that saving along to you. They are also willing to eat the cost if you spend $200AUD. So how are they "gouging" you?You would like them to drop that resistor in an envelope and charge you $3 to send it. Well, I'd like Jennifer Lawrence to show up on my doorstep and throw herself at me. But just because that doesn't happen doesn't mean J-Law is a bitch or that Digikey is gouging you.The reason they do not ship via the postal service, I imagine, is because there is zero tracking and zero recourse if you claim you never got the shipment - then if you file a claim with your CC company, you win 100% of the time. After a very few such incidents, a company will simply stop shipping via this method because they lose money. $35AUD is a pretty low barrier to entry, and people unwilling to pay it because the order is to small are orders that Digikey doesn't really want anyway (it's a hassle to do all the paperwork and costs money for them to do so).When people feel these companies are screwing them over, I have a simple question... why not start up your own electronics distribution co in Oz? Start off by selling cheap stuff like passives and ship them one or two at a time by Australian Post. If it's profitable to do so, you'll make millions serving this unserved market that other companies are gouging. Or perhaps you realize there is no money in such a plan?

author: dannyf
author_rank: Super Contributor
timestamp: January 07, 2015, 11:45:18 am
content: QuoteI would rather that they give free shipping. I would rather that they give free parts. I would rather than they slip a $20 bill in ever shipment. I would rather that they pay me for buying from from....Digikey is not obligated to do anything you or I want. It is only obligated to do that's best for itself. And in this case, buying shipping in bulk and selling it in retail, even with a mark-up, is best for Digikey.If you don't like it, you can always buy somewhere else. Voting with your wallet is the best way to send a message of disapproval to any business.

author: macboy
author_rank: Super Contributor
timestamp: January 07, 2015, 04:40:26 pm
content: Quote from: Red Squirrel on January 06, 2015, 11:23:07 pmThe threshold in Canada is CDN$200 actually; below that there is a $8 flat charge. You will Never have customs or brokerage fees owing on packages from Digi-key. Orders are shipped from within Canada (Ontario), and the appropriate GST or HST is collected at the time of order. The $8 charge is very reasonable given that they use very fast shipping. If I placed an order right now, I would fully expect it to be at my door step tomorrow morning.http://www.digikey.ca/en/help/free-shipping

author: cosmicray
author_rank: Frequent Contributor
timestamp: January 08, 2015, 03:49:11 am
content: Quote from: Red Squirrel on January 06, 2015, 11:23:07 pmLet me try one possible explanation. The post office will give you very good rates, if you are shipping huge quantities, and the post office only has to handle individual packages for the final mile (or sector). If the outgoing postal sort center in HK, is presorting by US postal distribution center, then sending (for example) all the northeastern Illinois packages in one airline shipping container, USPS would be pleased to only have to open that in Chicago, for final distribution. I'm not positive China is doing this, but I do see tracking from very large US shippers doing this type of consolidation. Some of these consolidated containers are being handled by DHL or UPS. Once it gets very close to the destination, then deposit it with USPS.Very few small/medium US shippers can reach the volume scale to do this type of consolidation. That China/HK is a long distance away, may give them an opportunity to do this. The government there may be subsidizing the handling of consolidated containers, which gives them a leg up.

author: sleemanj
author_rank: Super Contributor
timestamp: January 08, 2015, 04:13:53 am
content: Here in NZ, somewhat unusually, RS has free shipping on ALL online orders (paid with credit card), often next day too.You could buy a single 2n2222 for 69c including GST, and they will courier it to you free.Even more insane is that some stock has to come across from AU, which they get shipped to the Auckland branch in a couple of days, then repackage and send it on to you, all for free.I can only guess they must have a hell of a good deal with the courier, must be some bulk rate independent of the volume of packages.

author: LukeW
author_rank: Frequent Contributor
timestamp: January 08, 2015, 04:55:09 am
content: I'm happy to pay a little bit of a premium for Digikey because they Just Work with very little stuffing around. Huge range of stock, so you rarely need to go to other suppliers, and the delivery is extremely fast with no mucking around. Everything is in stock immediately when you want it and it's immediately dispatched accurately in one box. If the product is out of stock then the website says it's out of stock before you order.Compare that to element14, where an order of (for example) 500x 0603 capacitors may involve a parcel dispatched with 450 units, and then 47 units shipped next week, and then 3 units shipped in another parcel the week after that. If I knew the accurate stock level you actually had for immediate dispatch (like DigiKey) I would only order 450 and save us both stuffing around.Or this one I recently got from element14 - pic.twitter.com/GRITTwUq5TOrdered 200x 0603 resistors and I got 54 resistors one week and 146 random 10uF tantalums I didn't order next week.

author: Bandit-Technical
author_rank: Contributor
timestamp: January 08, 2015, 04:57:00 am
content: Digikey = lots of cases with missed components and waiting for them through fedex express...

author: baljemmett
author_rank: Unknown
timestamp: January 08, 2015, 03:30:55 pm
content: Quote from: LukeW on January 08, 2015, 04:55:09 amHmm, doesn't the e14 website list that? The Farnell one does here - current stock level in the UK and EU warehouses - although sometimes it's hard to guess which of the two they'll send a given item from (often an order ends up split between both).

author: macboy
author_rank: Super Contributor
timestamp: January 08, 2015, 04:47:31 pm
content: Quote from: cosmicray on January 08, 2015, 03:49:11 amThe real explanation for cheap-as-free shipping from China etc. is due to the international mail handling rules dictated by the Universal Postal Union. This sets forth that (in lieu of another explicit agreement) each country will deliver, free of charge, any mail originating from another country, and that the originating country collects what they feel is appropriate postage and keeps 100% of it. The shipping charge is cheap because it is just the small nominal fee that China/HK/etc charges. If the USPS had its way (and got its share) then it would be at least an order of magnitude more expensive I would think. The USPS does their part without payment from China post. So howdoesit get paid? With the exorbitant fees that they charge to ship from the USA to international destinations... this is implicitly how the system works, the outgoing international postage is intended to subsidize the cost of handling the incoming international mail. This is also why international sellers in USA have such a hard time to compete. It typically costs me (as a buyer) around $20 to have even the simplest, smallest item shipped from USA to Canada, since "priority" international is now the cheapest tracked/insured service. For this reason, I have avoided USA sellers for years.

author: andersm
author_rank: Super Contributor
timestamp: January 08, 2015, 07:49:48 pm
content: Quote from: macboy on January 08, 2015, 04:47:31 pmNot for free, the destination country will charge a cost that is proportional to the domestic delivery rates of the originating country. Which of course means that if the postage in the originating country is very low, delivery in the destination country happens at below cost.

author: cosmicray
author_rank: Frequent Contributor
timestamp: January 09, 2015, 09:00:55 pm
content: Quote from: andersm on January 08, 2015, 07:49:48 pmWhich creates an interesting situation for outbound parcels (US to China). If the Chinese are keeping domestic delivery rates low, and they collect the USPS domestic rate from USPS, does that mean that US originating shippers are subsidizing China originating shipments coming back ?

author: dannyf
author_rank: Super Contributor
timestamp: January 09, 2015, 09:52:56 pm
content: The whole shipping situation has been discussed to death. Yet you continue to have people who are too ignorant to want to or be able to understand the situation and will always insist on "subsidies". Hopeless.QuoteDepending on what you mean by "keeping". The Chinese postal services has much lower operating costs, and offers a variety of highly profitable businesses (like banking for example, that some in the US is proposing now for USPS).They price their services to be profitable - and the Chinse postal services is immensely profitable. It just so happens that their prices are lower than the USPS'.The whole situation is both a stupidity and brilliance on the part of USPS: while the USPS underpriced its delivery costs for China-originated parcels (ie they cannot recover the full cost of providing such services - ie. its stupidity), such delivery is still profitable on the margin -> its brilliance in that had USPS not provided such services, it would have seen even more losses.

author: SeanB
author_rank: Super Contributor
timestamp: January 10, 2015, 06:21:23 am
content: Here in SA the post office has for decades offered bill payment services, and has always had a banking function, originally using a book with the transactions written into it and then stamped by the teller. You can pay a very large range of bills there, from fishing licences to motor vehicles, phone bills, local government and even a few large retail stores. Basically everything where they can get a commission on it. They even sell stamps......

author: Corporate666
author_rank: Unknown
timestamp: January 10, 2015, 10:24:21 am
content: Quote from: dannyf on January 09, 2015, 09:52:56 pmThe USPS is losing money on the packages they deliver from Chinese sellers. So, that is a subsidy... sure, they don't lose as much as under the prior agreement, but they are still providing the service at a loss which is made up by US shippers paying the difference. = subsidized.