Amazon’s sweetheart deal with the USPS

August 1, 2017

But according to a report published by Josh Sandbulte in the Wall Street Journal, USPS has been picking up the tab for Amazon. The WSJ contributor, whose expertise is in the shipping industry, detailed how Congress prevents USPS, through the Postal Accountability and Enhancement Act, from changing the parcel price. This law is designed to avoid “unfair competition” with FedEx and UPS. Section 3626 of Title 39 United States Code has become one of the provisions often quoted whenever limits imposed on USPS are being researched.

The report implies that Amazon gets the better end of the deal through the $1.46 subsidy. It is as if the Postal Accountability and Enhancement Act served as a loophole for Amazon to exploit.

“The U.S. Postal Service delivers the company’s boxes well below its own costs,” Sandbulte mentioned. “Like an accelerant to the fire, this subsidy is speeding up the collapse of traditional retailers in the U.S. and providing an unfair advantage for Amazon.” He further labeled that $1.46 subsidy as “a gift card from Uncle Sam.”

USPS has been shifting to package delivery as first-class mail delivery has decreased by 40% from its peak.

With USPS picking up part of the tab for Amazon, it means that the retailing behemoth can drop its prices. FedEx and UPS receive no such deal from shipping, having to bear their share of the system costs to deliver packages.

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56 Comments on "Amazon’s sweetheart deal with the USPS"

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Sonya Dugger Williams

Melissa Kay Mccranie

Jennifer Spell

Jennifer Paul

Jennifer Spell

Should be easy for the post office to do since we are not getting paid to deliver them. 😡

Wendy Moehlmann

And our lovely union has allowed it.

Julie Welsh

I believe there is NO Union they just collect the dues!

Ruth Walker

They had to have gotten a piece of that pie or they would not have agreed to it i think when this contract is up when we ratify the next one we should all vote no unless they take out the ability to strike

Mark Pearl

Do like the clerks do. Have the UNION file a class action suit claiming a great portion of the Amazon profits, make it retro to when they started making us do it for free.
The clerks did this a few years ago claiming they were cheated out of work hours. They won and were awarded $52 million dollars to be split betwixt them. For work they didn’t even do!!!!

Tim Williams

Usps is becoming one of the biggest freekin jokes that I’ve ever seen. Wtf happened?

Shannon Cole

What happened they let people behind a desk who couldn’t make it on the street make the decisions! No customer service anymore it’s all about the Amazon !

Heart of Texas

WTF happened? Its called Congressional meddling.

Terrie Oliver

Michelle Lee Hurston-Haumesser

Cheryl Garlepied Stuard

ScottandLeighanna Willard

Julie Aguilar

We’re picking up the tab by delivering Amazon for free! 😡

Barbara A. Albright

It’s just plain wrong 🙁

Valarie Knall

I personally think amazon used post office to get off ground if they deliver their own that is another competition…

Jeremy R. Ebert

I was in the postmasters office today. He thinks we are getting paid for Amazon. I said no we are not. Supervisors are clueless.

Shane Baxter

If where not getting paid for Amazon, then how are we in the black for the last four years? Its not from first class?

Jo Kappus

We (carriers) are not getting paid for Amazon I believe is what Jeremy means

April Brown Graham

Shane Baxter the postal service may be getting paid but the carriers sure aren’t.

Emily

Supervisors want you buy a bigger car to take all the packages get mad when you have to make a second trip and then don’t pay for it

Kimberly Gentry

Rural carriers aren’t.

Jeremy R. Ebert

Yes, he actually said you are getting paid to deliver Amazon. I said no we are not. Then he said Well, mail has dropped off 30%. It’s a d**n madhouse.

Carol Cummings

But stupidvisors can sure ride your butt about scans but they only care about Amazon scans. Priority has gone by the wayside

Cheryl Harrison Bledsoe

I dont know about anyone else, but I haven’t had a cut in my pay. All parcels are treated the same at our post office (unless they are accountables). Sounds like they give a discount so we are the preferred shipper, which gives us the business, not UPS or FedEx.

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