Agree with your premise 100%

Probably the issue is why are imported products from China not going down in cost as a result in the reduced overhead costs associated with shipping…..I.E. are sellers pocketing the savings from shipping cost reduction but not reducing the prices of their goods for sale.

This analysis forgets the inherent delay associated with these kinds of inputs. Prices won’t fall until competitive pressures make them. If everyone importing a certain widget is selling for a stable price of $x, why would they reduce that price unless demand falls to a level they’re forced to consider $x-y = more sales (and more profit)?