Why not just subsidize the shit out of the USPS?

I buy a lot of AliExpress stuff, craft and hobby electronics stuff, and have run into situations where a domestic vendor will have what I want, sometimes even at a competitive price, but their shipping will be $5-10- maybe discounted if I spend $50, 100, or more, while the Chinese option is $2 postage, or even “free postage if I spend $10.”

If you could mail a 100 gram padded envelope for under $1, it would cloae the gap substantially.