It’s a good rant by the President, but the Postal Service doesn’t actually lose money on its Amazon business.
BTW, I see U.S. Mail trucks everywhere on Sundays now. They have people in civilian clothing driving them and delivery Amazon packages exclusively. Maybe Amazon should just buy the US Postal Service and be done with it.
I'm not seeing the problem here. Sure they lose money on every package, but they make it up in volume. Can I get an overpaid USPS board seat now? Besides I really like that Amazon Prime free shipping.
If the USPS raises their prices to Amazon, who pays that?
There is a long list of suggestions to help the USPS but years of expensive management studies purchased by government agencies go ignored because they just want bigger budgets and more money.
Like most government entities, the USPS is burdened with a spending problem.
Unions have forced them to retain inept, worthless, brain dead employees. A private company would run lean and mean.
Being supported by tax dollars, there is little oversight, no accountability, and way too much overhead.
Absolutely NO BAILOUTS or LOANS for GOVEY ENTITIES!! Outrageous!
Did we ever do anything about China getting “developing nation” shipping to the US cheaper than domestic rates?
It would be a whole new ballgame. All their business with Amazon and the other companies would go to UPS, Fed Ex, Amazon's own delivery service, and other delivery services leaving the Post Office with nothing except certain elimination.
With all the businesses going under because of Amazon, one wonders why the feds haven’t gone after Amazon as a monopoly.
Don’t want to insult Amazon, or are afraid Amazon will just replicate the PO package services way more efficiently?
What would happen at this point if Amazon took their packages out of the USPS system? Could what’s left be delivered without losing money, or how much money would be lost if that happened?
How much could prices go up without UPS and/or FedEx simply taking the business for their betterment?
And though the USPS is constitutionally mandated, how much outsourcing to other providers (e.g., UPS/FedEx) could or should be done most efficiently while staying within the Constitution?
The real issue is unionization. Everyone sees the slow as molasses workers at the post office. And that’s what’s out front in view.
This is all about volume. Anything you buy in quantity, you get a better price. That applies to goods AND services.
I have no idea what kind of deal the USPS has with Amazon, but I do know eBay.
Based on a 2 pound package, the USPS gives a discount to sellers of from about 7% to 24% (the 24% is for cross country Priority mail). Most discounts top out at about 13%).
FedEx gives discounts of from about 15% to 38%.
UPS gives almost nothing, 0% to 5%.
Honest sellers pass those savings along to the buyer. Others pocket the savings, sell less, and get complaints for overcharging.
FedEx is killing the post office on larger/heavier package, the USPS has the advantage for smaller/lighter packages. USPS is still the best for international shipping.
So, is FedEx wrong for giving the most generous discounts?
What happens when the rates are raised? The increase is passed along to the buyers (even if shipping is “free”, which is never actually the case), and a certain number of buyers won’t buy at all, or seek other options.
Anybody know what kinds of deals Amazon gets?
I agree with those remarks.
The postal service was original conceived with a purpose of simply delivering letters and packages between citizens and some mail order houses.
Today I can see the USPS flooded beyond capacity in terms of employees, facilities and equipment for all the in-home buying people do off the internet.
Then we have the businesses being run out of business because of this.
The answer might be to raise package shipping rates to make the Amazon and like purchases pay a fairer share. But then that screws the average citizen just mailing birthday and Christmas packages.
Every Amazon order I’ve ever received came UPS. I guess that varies on different routes, but I’d rather have smaller packages delivered by the USPS; too many larger vehicles aren’t good for gravel driveways.
Amazon will just start their own delivery service if the PO jacks up their rates to Fed Ex/UPS levels. Their competition, small businesses, won’t be able to afford to do that. Who benefits from Trump attacking USPS? Amazon.
They dont want to raise their prices because then they wouldn’t be the poor poor postal service thats about to go bankrupt without a government bail out from the rats in congress
They also need to raise the junk mail/third class rate.