Posted on 07/13/2017 6:44:08 PM PDT by ForYourChildren
A Citigroup analysis finds each box gets a $1.46 subsidy. Its like a gift card from Uncle Sam.
In my neighborhood, I frequently walk past shop local signs in the windows of struggling stores. Yet I dont feel guilty ordering most of my familys household goods on Amazon. In a world of fair competition, there will be winners and losers.
But when a mail truck pulls up filled to the top with Amazon boxes for my neighbors and me, I do feel some guilt. Like many close observers of the shipping business, I know a secret about the federal governments relationship with Amazon: The U.S. Postal Service delivers the companys boxes well below its own costs. Like an accelerant added to a fire, this subsidy is speeding up the collapse of traditional retailers in the U.S. and providing an unfair advantage for Amazon.
{..snip..}
(Excerpt) Read more at wsj.com ...
How far did that drone have to fly to your house?
“I must say that the postal system is getting better.”
I don’t see it. I took an 8-1/2” x 11” envelope into the post office on 6/20 and mailed it from AZ to MI. Mailed it regular mail - supposed to deliver in 3 to 5 business days. It hasn’t arrived yet.
not far, one of Amazon’s distribution centers is about 15 minutes south of where I live. Almost everything I order off Amazon now gets here same day/next day.
BTW, the “same day” delivery option had a graphic of a drone next to it also. It appears Amazon’s telling their customers what’s arriving via drone now too.
Saw a post that said to the tune of like $1Ms/day.
Except that it is on you and the rest of us taxpayers for stupid government institutions...
Thank you. Amazing how folks (especially here) don’t realize that their TAX $$$$ are paying for this/all government programs.
Geeeeeeez mahneeeeez.
To commenters who do not care how there packages are delivered:
USPS loses $5 billion dollars a year.
Guess who makes up the shortfall.
I stopped buying from amazon almost a year ago.
Also stopped using Facebook.
I won’t give clicks or money or further positive attention to those greedy people, same goes for starbucks, you can’t pay me enough to buy or put money in the pockets of any of them.
Not to a lot of us they don't! Many postal customers, including my household do not warrant home delivery. We have to go down to a post office for all our mail. That includes Amazon packages.
Not to a lot of us they don't! Many postal customers, including my household do not warrant home delivery. We have to go down to a post office for all our mail. That includes Amazon packages.
Walmart has many of the same products as Amazon, with free, 2 day delivery.
Not sure how long, or if they can even compete with subsidized Amazon. Maybe Walmart should ask for the USPS “Amazon shipping rate” special.
The article is behind a paywall so I can't see the math, but there is a difference between average cost and incremental cost. How much is the postage for the 1.6 million packages and how much extra does it cost to deliver them?
Imagine if it costs $7 to deliver one package and only $1 extra to deliver the second. If each sender pays $2, does that mean the second package lost the post office $2 = $2 postage - average package cost of $4? Or did the USPS profit $1 = $2 postage - $1 incremental cost? I have no idea without seeing the math.
“If I had a customer that shipped 1.6 million packages per day, Id give them a discount too.”
and i imagine amazon pre-sorts the packages as well.
and no doubt amazon gets special discounts from fedex and ups too.
I don’t fakebook or Starbucks, but Amazon gets gun parts, mower and engine parts to me in two days, and cheaper than Cheaper Than Dirt, which can take a couple weeks, if it isn’t BO’d.
That’s capitalism. Compete or join Blockbuster, go big or go home.
“Items on Prime are more expensive to cover the cost of the postage. “
everything i order is shipped Prime because I pay for Prime membership. So you’re claiming they’re jacking up the price for EVERYTHING I buy? I don’t think so. I’ve priced items both logged onto to amazon and not logged on, and the prices are the same whether amazon knows who i am or not.
A lot of inconsistency. In my area there are no rural routes and some people are 40 miles from the Post Office and still have to go to the Post Office to get mail. To top it off our little Post Office was on the list of closures a couple years ago and those people would have had to go an additional 30 miles to get their mail. We fought closure, and were amazed we won, at least that round.
I still wonder why there are so many Post Offices (branches) so close together in cities. That doesn’t seem to be cost effective. Our mail that is Westbound is sent 100 miles East first to be sorted then sent the other way; that doesn’t seem cost effective either.
“$2.33M dollars a day subsidy”
Bezos doesn’t mind adding to our nation’s debt just so long as he continues to get filthy rich.
“I still wonder why there are so many Post Offices (branches) so close together in cities”
—
Population and business density has a lot to do with it.
I am virtually around the corner from my PO and there are four others that I could reach by car in 15 minutes.
.
Taxpayers pay about the same amount of money to oil companies every year, too. Looks like some of you will have to stop driving your cars now : )
I know if Walmart has it available from one of their stores they are cheaper than Amazon. They don’t come close to the selection that Amazon has though. But, you still can’t beat the Walmart warranty and free return shipping - completely hassle free. I have read many horror stories about Amazon in that regard and I would not buy anything major from Amazon because of that.
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