Is the Post Office making or losing money delivering Amazon packages?

WaPo: Is the Post Office making or losing money delivering Amazon packages?

Once again, it seems as if Trump was talking through his ass when he claimed...

I am right about Amazon costing the United States Post Office massive amounts of money for being their Delivery Boy. Amazon should pay these costs (plus) and not have them bourne by the American Taxpayer. Many billions of dollars. P.O. leaders don’t have a clue (or do they?)!
— Donald J. Trump (@realDonaldTrump) April 3, 2018

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While we are on the subject, it is reported that the U.S. Post Office will lose $1.50 on average for each package it delivers for Amazon. That amounts to Billions of Dollars. The Failing N.Y. Times reports that “the size of the company’s lobbying staff has ballooned,” and that...
— Donald J. Trump (@realDonaldTrump) March 31, 2018

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...does not include the Fake Washington Post, which is used as a “lobbyist” and should so REGISTER. If the P.O. “increased its parcel rates, Amazon’s shipping costs would rise by $2.6 Billion.” This Post Office scam must stop. Amazon must pay real costs (and taxes) now!
— Donald J. Trump (@realDonaldTrump) March 31, 2018

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So what would happen if President Trump got his way and the Postal Service was required to charge that much for a package? It’s a pretty good guess that the Postal Service would lose many of its biggest package delivery customers, including Amazon. And without that revenue, the Postal Service would lose a lot more money than it is already losing. That would force it to dramatically raise rates on Aunt Millie and Orvis, who would respond by mailing fewer birthday cards and catalogues. And in the end, what you would get would be a death spiral that eventually would force Congress to shut down the Postal Service and sell it off to the highest bidder.

MTAtech said:

WaPo: Is the Post Office making or losing money delivering Amazon packages?

Once again, it seems as if Trump was talking through his ass when he claimed...









So what would happen if President Trump got his way and the Postal Service was required to charge that much for a package? It’s a pretty good guess that the Postal Service would lose many of its biggest package delivery customers, including Amazon. And without that revenue, the Postal Service would lose a lot more money than it is already losing. That would force it to dramatically raise rates on Aunt Millie and Orvis, who would respond by mailing fewer birthday cards and catalogues. And in the end, what you would get would be a death spiral that eventually would force Congress to shut down the Postal Service and sell it off to the highest bidder.

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I have still yet to receive an Amazon package through USPS

As with most things involving the government, it means scrutiny of the math used.

However in this case we get to point to the 2006 Postal Accountability and Enhancement Act where the Postal Service is not allowed by law to price delivery below cost.

We might be "losing money" based on the point of view that the Postal Service *could* be negotiating for more from Amazon than they already are, but we have no real evidence that the Postal Service is in the red working with Amazon.

Worse, this is perhaps one of the few good areas for the Postal Service. The same above referenced law made it where health benefits had to be pre-funded for future retired Postal Service workers and that greatly impacted the actual number the Postal Service reported for all of last year's red. And other areas of Postal Service revenue is in decline, equating to something like $3 billion in red last year.

I would argue that Trump is going to Twitter with point of view statements, but given his character what is really happening is Trump is full of **** and making a mess just for the sake of doing so in his continued hate fest with Amazon.

Crovax said:

I have still yet to receive an Amazon package through USPS

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Got a package from Amazon via the Spanish version of USPS.. first time the postman had been near my house for many many months Why? Dont get mail anymore, as everything is electronic. Oh and oddly enough, the Spanish national post company is actually quite profitable..

Crovax said:

I have still yet to receive an Amazon package through USPS

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If it fits, USPS. Only larger items come UPS, to me anyway. Or high value, signature required items will come UPS. In the past, when I got the notification the two abbreviations were easily confused.

Post office now has to work Sundays for Amazon and many of the workers dont get paid extra for that. Bernie Sanders just came out and said he agrees with Trump on the Amazon issue.

Bernie Sanders: Amazon is too big - Business Insider

pilot16 said:

Post office now has to work Sundays for Amazon and many of the workers dont get paid extra for that. Bernie Sanders just came out and said he agrees with Trump on the Amazon issue.

Bernie Sanders: Amazon is too big - Business Insider

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I have many problems with Amazon's business practices. But given the choice between Jeff Bezos trying to preserve independent journalism at WaPo and Donald J. Trump trying to destroy it, I stand with Bezos.

All over the world, dictators and would-be dictators are doing precisely what Trump is doing. They are all leaving their societies worse off. I don't want the same thing happening here.

While Sanders' motivation is to stick up for the small retailer, Trump cares not at all about out-of-control corporate power, or monopolies, or the survival of small businesses. He cares about destroying whoever stands in his way, full stop. Since he's forcing us to take sides, I'm on the other side.

MTAtech said:

I have many problems with Amazon's business practices. But given the choice between Jeff Bezos trying to preserve independent journalism at WaPo and Donald J. Trump trying to destroy it, I stand with Bezos.

All over the world, dictators and would-be dictators are doing precisely what Trump is doing. They are all leaving their societies worse off. I don't want the same thing happening here.

While Sanders' motivation is to stick up for the small retailer, Trump cares not at all about out-of-control corporate power, or monopolies, or the survival of small businesses. He cares about destroying whoever stands in his way, full stop. Since he's forcing us to take sides, I'm on the other side.

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I think the big problem here is the too big to fail thing that gets out of hand. Iceland was able to jail bankers and have decent banks because they didnt play politics. If it was wrong, it was wrong. Now we face this nutty problem where, some support these things but just because Trump does too, they change their minds. Which is all fair and good until the next guy in power comes along and it happens again. Its why we did nothing to the bank CEOs after 2008. We took partisan corners and now they are up to their old tricks. They just keep getting more and more powerful. At some point we are going to have to stand up for whats right no matter who the leadership is.

pilot16 said:

I think the big problem here is the too big to fail thing that gets out of hand. Iceland was able to jail bankers and have decent banks because they didnt play politics. If it was wrong, it was wrong. Now we face this nutty problem where, some support these things but just because Trump does too, they change their minds. Which is all fair and good until the next guy in power comes along and it happens again. Its why we did nothing to the bank CEOs after 2008. We took partisan corners and now they are up to their old tricks. They just keep getting more and more powerful. At some point we are going to have to stand up for whats right no matter who the leadership is.

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The issue is that Trump wants to raise the shipping cost on Amazon because he claimed that it's below cost. According to the article, it isn't below cost and raising it would hurt not only Amazon but other shippers.

I view this as a petty attack on Amazon because Bezos owns the Wash Post that often writes anti -Trump editorials.

MTAtech said:

The issue is that Trump wants to raise the shipping cost on Amazon because he claimed that it's below cost. According to the article, it isn't below cost and raising it would hurt not only Amazon but other shippers.

I view this as a petty attack on Amazon because Bezos owns the Wash Post that often writes anti -Trump editorials.

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Totally agree but as we know, Amazon is in the process of beginning their own delivery service, and open warehouses for customer pickup. What happens in a year or two when that happens? How long does the USPS survive then? They will be out of business overnight. Then we will be left wondering how it happened. Have also seen some postal workers claim in certain places where there are Whole Foods supermarkets, their deliveries have gone down since Amazon has pick up centers in the back and uses their own trucks to deliver. I really dont think the post office is long for the world once Amazon gets going.

Trump is an ass, and talks and Tweets like an 8 year old. His name calling and insults are a disgusting. The old American saying that 'anyone can become president' is proven, even an 8 year old can be POTUS has come true.

The USPS does not lose money delivering packages. From Amazon or anyone else. They lose money because of the Congressional mandate to provide health care and benefits for their employees for the next 75 years. In other words they have to provide benefits for employees they haven't even hired yet.. Thanks to the REPUBLICAN congress in 2006.

pilot16 said:

Totally agree but as we know, Amazon is in the process of beginning their own delivery service, and open warehouses for customer pickup. What happens in a year or two when that happens? How long does the USPS survive then? They will be out of business overnight. Then we will be left wondering how it happened. Have also seen some postal workers claim in certain places where there are Whole Foods supermarkets, their deliveries have gone down since Amazon has pick up centers in the back and uses their own trucks to deliver. I really dont think the post office is long for the world once Amazon gets going.

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The Post Office has neglected to change with the times. People stopped sending cards, letters, business communications and bills via the service. The employees and management have toxic relations. I know a few of the employees at my local PO and they will not lift a finger to do anything beyond what their contracts specify. Don't expect them to open one second early or come back from lunch one second before time. The PO didn't used to close over lunch, 12-1300hrs. Many people used to try to do errands on lunch, not at the PO. I don't know where the fault lies, whether it's mgmt or labor, but I avoid the PO if at all possible. If it's going to die, better a swift death. This Trump/Bezos flap has more to do with the WAPO than anything else, imo.

Rexedgar said:

The Post Office has neglected to change with the times. People stopped sending cards, letters, business communications and bills via the service. The employees and management have toxic relations. I know a few of the employees at my local PO and they will not lift a finger to do anything beyond what their contracts specify. Don't expect them to open one second early or come back from lunch one second before time. The PO didn't used to close over lunch, 12-1300hrs. Many people used to try to do errands on lunch, not at the PO. I don't know where the fault lies, whether it's mgmt or labor, but I avoid the PO if at all possible. If it's going to die, better a swift death. This Trump/Bezos flap has more to do with the WAPO than anything else, imo.

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Have a neighbor who is in the USPS and is worried they wont be around in a decade. People under 50 almost never mail anything and they are concerned about Amazon's delivery service. The USPS contract is up shortly with Amazon and they renegotiate shorter and shorter terms. There is private concern there but of course with Trump they remain silent.

pilot16 said:

Have a neighbor who is in the USPS and is worried they wont be around in a decade. People under 50 almost never mail anything and they are concerned about Amazon's delivery service. The USPS contract is up shortly with Amazon and they renegotiate shorter and shorter terms. There is private concern there but of course with Trump they remain silent.

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Amazon is probably the only thing making the USPS money.
Nobody is forcing them to bid on the business - they can walk away when the contract expires.

Crovax said:

I have still yet to receive an Amazon package through USPS

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Depends on the area, I guess. About 90% of the once per month order we get from Amazon are delivered USPS. The only exceptions are large, bulky items that I guess UPS delivers more cheaply.

It doesn't matter whether what Trump tweeted is true or not. The point is, Trump supporters are supposed to hate Amazon, plain and simple.

They already know they are supposed to hate the MSM, the FBI, CIA and all other intelligence services, the courts, etc.

Trump is very close to having the cabinet that he wants and he's only 15 months into his presidency. Well on his way to becoming the greatest president in the history of presidents.