The factory price is only the beginning
The earbuds themselves cost surprisingly little to make. A typical budget TWS (true wireless stereo) unit leaves the factory for $4–7, including the charging case, drivers, and battery. Everything after that is layers of cost:
- Shipping and warehousing — sea freight is cheap, but last-mile logistics in the US and Europe are not.
- Import duties — depending on the tariff code, earbuds can pick up 5–15% entering the US, plus customs handling fees.
- Platform commissions — Amazon takes 8–15% of the sale, and that’s before advertising.
- Returns and warranties — electronics have high return rates, and sellers price that risk in.
Add it all up and a $6 factory cost easily becomes a $25 shelf price.
Why China is different
In China, most of those layers shrink or disappear. Domestic logistics are a fraction of US costs, there are no import duties, platforms charge less, and competition between manufacturers is brutal. When a hundred factories near Shenzhen make nearly identical earbuds, the only way to compete is on price.
Should you buy the cheap version?
If you just want decent sound for commuting — honestly, yes. The budget tier is far better than it was five years ago. Just keep expectations realistic on battery life and app support.
You can check current prices and my side-by-side comparison below.