This would be a big plus for UPS if I'm understanding it correctly.
I have a customer who sell a product on eBay for $5 plus $3 for shipping. The Chinese company that manufactures that product also sells it on eBay but their price is $4 with free shipping. It gets shipped from China and takes longer to arrive but if time isn't important you can save 50%. eBay and Amazon are full of foreign sellers that use subsidized postal pricing to their advantage to compete on an uneven playing field with domestic companies.