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It costs USPS $3.46 to deliver Amazon packages but Amazon only pays $2.00

https://www.wsj.com/articles/why-the-post-office-gives-amazo...
aqua ungodly hall
  11/18/17
post text
flesh soul-stirring circlehead
  11/18/17
...
yapping wrinkle national
  11/18/17
...
yellow newt
  11/18/17
...
Razzmatazz nudist toilet seat
  11/18/17
In my neighborhood, I frequently walk past “shop local” sign...
aqua ungodly hall
  11/18/17
diabolical
mustard brunch
  11/18/17
Mr. Sandbulte is co-president of Greenhaven Associates, a mo...
silver naked library
  11/18/17
News articles are shit. One re-calculation by a single outsi...
yapping wrinkle national
  11/18/17
(Indian turd being paid $1/day to shill for Bezos)
aqua ungodly hall
  11/18/17
Lol sorry mate, not close
yapping wrinkle national
  11/18/17
also, his entire premise is based on a single study from shi...
Olive violent trailer park
  11/19/17
Exactly. The cost of postal deliveries is not "news&quo...
yapping wrinkle national
  11/19/17
http://www.dailymail.co.uk/news/article-4697884/U-S-Postal-S...
aqua ungodly hall
  11/18/17
...
aqua ungodly hall
  11/18/17
...
aqua ungodly hall
  11/19/17
This and Amazon paying like a 13% tax rate makes me think th...
180 parlour
  11/19/17
yeah, this is cr. also bezos's purchase of wapo is best und...
aqua ungodly hall
  11/19/17
Indeed.
180 parlour
  11/19/17
Same with the locale picked for hq2 - whichever states pols ...
Hairraiser Swollen Quadroon Rehab
  11/19/17
...
crystalline awkward school cafeteria useless brakes
  11/19/17


Poast new message in this thread



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Date: November 18th, 2017 8:55 PM
Author: aqua ungodly hall

https://www.wsj.com/articles/why-the-post-office-gives-amazon-special-delivery-1499987531?mod=trending_now_1

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720095)



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Date: November 18th, 2017 8:56 PM
Author: flesh soul-stirring circlehead

post text

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720097)



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Date: November 18th, 2017 8:57 PM
Author: yapping wrinkle national



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720107)



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Date: November 18th, 2017 8:57 PM
Author: yellow newt



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720111)



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Date: November 18th, 2017 10:44 PM
Author: Razzmatazz nudist toilet seat



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720742)



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Date: November 18th, 2017 10:47 PM
Author: aqua ungodly hall

In my neighborhood, I frequently walk past “shop local” signs in the windows of struggling stores. Yet I don’t feel guilty ordering most of my family’s 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 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.

This arrangement is an underappreciated accident of history. The post office has long had a legal monopoly to deliver first-class mail, or nonurgent letters. The exclusivity comes with a universal-service obligation—to provide for all Americans at uniform price and quality. This communication service helps knit this vast country together, and it’s the why the Postal Service exists.

In 2001 the quantity of first-class mail in the U.S. began to decline thanks to the internet. Today it is down 40% from its peak levels, according to Postal Service data. But though there are fewer letters to put into each mailbox, the Postal Service still visits 150 million residences and businesses daily. With less traditional mail to deliver, the service has filled its spare capacity by delivering more boxes.

Other companies, such as UPS and FedEx , compete with the Postal Service to deliver packages. Lawmakers, to their credit, wanted a level playing field between the post office and its private competitors. The 2006 Postal Accountability and Enhancement Act made it illegal for the Postal Service to price parcel delivery below its cost.

But with a networked business using shared buildings and employees, calculating cost can be devilishly subjective. When our postal worker delivers 10 letters and one box to our home, how should we allocate the cost of her time, her truck, and the sorting network and systems that support her? What if the letter-to-box ratio changes?

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.

I do not know which stores in my neighborhood will be gone five years from now, but I am certain my household will continue to receive numerous boxes from Amazon. I also believe that society would be better off if competing retailers, online or brick-and-mortar, continue to thrive. Congress should demand the enforcement of the Postal Accountability and Enhancement Act, and the Postal Service needs to stop picking winners and losers in the retail world. The federal government has had its thumb on the competitive scale for far too long.

Mr. Sandbulte is co-president of Greenhaven Associates, a money-management firm that owns FedEx common stock.

Appeared in the July 14, 2017, print edition.

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720763)



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Date: November 18th, 2017 10:54 PM
Author: mustard brunch

diabolical

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720798)



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Date: November 18th, 2017 11:00 PM
Author: silver naked library

Mr. Sandbulte is co-president of Greenhaven Associates, a money-management firm that owns FedEx common stock.

Everyone has an angle bro

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720824)



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Date: November 18th, 2017 10:55 PM
Author: yapping wrinkle national

News articles are shit. One re-calculation by a single outside firm doesn't constitute a fact.

The whole article trades on fixed costs not "keeping pace" with the growth in packages as a percent of deliveries but provides no evidence for why it must "keep pace", which I'm assuming means "grows linearly with".

Shit reporting, shit analysis.

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720800)



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Date: November 18th, 2017 10:59 PM
Author: aqua ungodly hall

(Indian turd being paid $1/day to shill for Bezos)

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720818)



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Date: November 18th, 2017 11:00 PM
Author: yapping wrinkle national

Lol sorry mate, not close

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720829)



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Date: November 19th, 2017 11:19 AM
Author: Olive violent trailer park

also, his entire premise is based on a single study from shittygroup

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34722988)



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Date: November 19th, 2017 11:45 AM
Author: yapping wrinkle national

Exactly. The cost of postal deliveries is not "news" and should not be reported by news outlets.

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34723088)



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Date: November 18th, 2017 9:03 PM
Author: aqua ungodly hall

http://www.dailymail.co.uk/news/article-4697884/U-S-Postal-Service-effectively-subsidizes-Amazon-postage.html

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720133)



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Date: November 18th, 2017 10:41 PM
Author: aqua ungodly hall



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34720717)



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Date: November 19th, 2017 10:35 AM
Author: aqua ungodly hall



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34722766)



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Date: November 19th, 2017 10:40 AM
Author: 180 parlour

This and Amazon paying like a 13% tax rate makes me think that Amazon might have problems in the long term.

It also makes me understand why Bezos (and other tech titans) fought against Trump so hard. If we get corporate tax reform Amazon will end up with a HIGHER tax rate than current. And if favoritism like this is eliminated then we are going to see their margins erode.



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34722808)



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Date: November 19th, 2017 10:47 AM
Author: aqua ungodly hall

yeah, this is cr. also bezos's purchase of wapo is best understood as a preemptive attack against Amazon anti-trust legislation.

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34722852)



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Date: November 19th, 2017 10:49 AM
Author: 180 parlour

Indeed.



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34722862)



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Date: November 19th, 2017 11:48 AM
Author: Hairraiser Swollen Quadroon Rehab

Same with the locale picked for hq2 - whichever states pols are fir sale and offer the best protection.

(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34723097)



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Date: November 19th, 2017 11:46 AM
Author: crystalline awkward school cafeteria useless brakes



(http://www.autoadmit.com/thread.php?thread_id=3802037&forum_id=2#34723092)