Why the Post Office Gives Amazon Special Delivery

A Citigroup analysis finds each box gets a $1.46 subsidy. It’s like a gift card from Uncle Sam.

Like many close observers of the shipping business, I know a secret about the federal government’s relationship with Amazon: The U.S. Postal Service delivers the company’s 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.

In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam.

Amazon is big enough to take full advantage of “postal injection,” and that has tipped the scales in the internet giant’s favor. Select high-volume shippers are able to drop off presorted packages at the local Postal Service depot for “last mile” delivery at cut-rate prices. With high volumes and warehouses near the local depots, Amazon enjoys low rates unavailable to its competitors. My analysis of available data suggests that around two-thirds of Amazon’s domestic deliveries are made by the Postal Service. It’s as if Amazon gets a subsidized space on every mail truck.

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All those parcels are upside down… ?

This would be the worst time in history to say anything about Amazon… (Prime Day)

Subsidized by the carriers who are delivering them for free and the subs who are forced to work Sundays with no overtime….

God I hate Amazon!!!! We had 38 pallets of Amazon packages this morning!!! Something’s got to give!!!!

10 figures that why

I delivered 190 pkg on my rte today. ?

as if I didn’t already have a reason to hate Amazon…. wish I could retire

Amazon never even came today until 12:30 soooo I’m going in tomorrow at 6 am to deliver today’s amazon and then I have to deliver tomorrow’s amazon… FML ☹️??

And my only thought is; are you freaking kidding me? We became an Amazon office after count so my on average “2” (NOT) parcels per day don’t add up to much so says my postmaster. I seriously call bullshit

Ummmmm because they don’t pay their employees to deliver it ?