Firstly, they do have their own private courier service.
Second, if USPS suddenly is pushed by the Administration or whatever upon which the Administration manages to lean, it will become more-expensive than FedEx, UPS, DHL, and so forth. The other clients will then go to those lower-cost providers. Then the USPS will go bankrupt, like the three casinos Trump managed to trash.
It seems like the increase would merely put it in line with the cost of existing services.
The whole issue here is that the USPS is subsidizing Amazon delivery, by charging rates lower than what it actually costs to ship things. Other mail fees are subsidizing Amazon, how is that right???
by Anonymous Coward writes:
on Friday May 18, 2018 @04:39PM (#56635282)
The USPS has publish information multiple times debunking this statement.
The primary reason that the USPS makes a profit on Amazon even though the indivitual package price is very low is that Amazon fills the shipment.
An analogy would be a standby ticket. They need to charge passengers $200 for the flight but there are often empty seats so charging someone $50 for those IS profitable because those were unsold tickets and the new passenger costs only a little bit extra.
The USPS has obligations for certain delivery times mandated by congress, so they have a ton of empty space on the airplane or freight truck. Unlike the airlines that schedule fewer flights when a route is slow, the USPS still has to drive it every single day.
USPS items get loaded first, then other shippers like Amazon. If the truck fills, Amazon waits for the next truck but that's such a rare occurrence that it isn't a concern for Amazon.
No, you're still losing money. You're just losing less of it, and in this case it is Amazon that is paying less than others.
Depends on the maths used, because as with airline tickets, each seat is sold at a different price to different people. So if the average seat cost was $100, I can still make a profit selling some seats for $200 and others for $50. This is a common free market method for maximising revenue per service.
What Trump is proposing is effectively socialist price controls, ie the government setting fixed fees. Fair enough if you support Soviet style policy, but I'm pretty sure that's not what most Trump voters vo
Won't that just push... (Score:5, Insightful)
Re: (Score:5, Insightful)
Firstly, they do have their own private courier service.
Second, if USPS suddenly is pushed by the Administration or whatever upon which the Administration manages to lean, it will become more-expensive than FedEx, UPS, DHL, and so forth. The other clients will then go to those lower-cost providers. Then the USPS will go bankrupt, like the three casinos Trump managed to trash.
How do you know it's more expensive? (Score:-1, Troll)
It seems like the increase would merely put it in line with the cost of existing services.
The whole issue here is that the USPS is subsidizing Amazon delivery, by charging rates lower than what it actually costs to ship things. Other mail fees are subsidizing Amazon, how is that right???
Re:How do you know it's more expensive? (Score:5, Informative)
The USPS has publish information multiple times debunking this statement.
The primary reason that the USPS makes a profit on Amazon even though the indivitual package price is very low is that Amazon fills the shipment.
An analogy would be a standby ticket. They need to charge passengers $200 for the flight but there are often empty seats so charging someone $50 for those IS profitable because those were unsold tickets and the new passenger costs only a little bit extra.
The USPS has obligations for certain delivery times mandated by congress, so they have a ton of empty space on the airplane or freight truck. Unlike the airlines that schedule fewer flights when a route is slow, the USPS still has to drive it every single day.
USPS items get loaded first, then other shippers like Amazon. If the truck fills, Amazon waits for the next truck but that's such a rare occurrence that it isn't a concern for Amazon.
Re: (Score:1)
No, you're still losing money. You're just losing less of it, and in this case it is Amazon that is paying less than others.
Re: (Score:2)
Re: (Score:1)
No, you're still losing money. You're just losing less of it, and in this case it is Amazon that is paying less than others.
Depends on the maths used, because as with airline tickets, each seat is sold at a different price to different people. So if the average seat cost was $100, I can still make a profit selling some seats for $200 and others for $50. This is a common free market method for maximising revenue per service.
What Trump is proposing is effectively socialist price controls, ie the government setting fixed fees. Fair enough if you support Soviet style policy, but I'm pretty sure that's not what most Trump voters vo