Is Pres. Trump Right about Amazon's USPS Unfair Free Ride?

1. 84

   GA Andersonposted 7 years ago

   *A tangent from another thread:
   
   
   
   
   
   

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   1. 84

      GA Andersonposted 7 years agoin reply to this

      I feel like I am on shaky ground here ahorseback. You have an inside source, and I only have my friend Google. But no worries, I have stubbed my toe before, I am used to the pain. ;-)
      
      It appears that the USPS gets paid for those "last mile" deliveries you mentioned. According to the USPS, it actively courts those deliveries. Here is a blurb about a 2008 deal with DHL:
      
      
      Sounds like the USPS views this type of delivery as a desired revenue source.
      
      I will pass on the sales tax point, because that is an essentially settled issue as of 4/1/2018 - Amazon has begun collecting sales tax in the last four states that it wasn't already collecting sales tax for.
      
      Sticking with the claim that Amazon is getting "...a free and unfair ride in the postal system...," I am still wondering why you think so.
      
      Google says that the Postal Accountability and Enhancement Act makes it illegal for the USPS to charge below cost rates, (as implied by the "Amazon" charge).
      
      But here's a kicker. I did find an article that seems to support Pres. Trumps claim - in general, maybe.
      21st Century Postal Worker article: USPS effectively subsidizes Amazon, undercharging them $1.46 a package on postage
      
      But... even if the point of the article, (you should check it out); that the reason is a 2007 faulty regulatory decision, is correct - it applies to all package deliveries; commercial and private, not just to Amazon.
      
      So how is the inference, specifically regarding Amazon, that applies to all packages, correct? By the article's logic - my package mailings are getting "...a free and unfair ride in the postal system...,"  too.
      
      GA

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      Randy Godwinposted 7 years agoin reply to this

      I have a family member who has long been a postal worker and he says Amazon is getting charged the same rate as other mail order businesses and Amazon contributes greatly to the USPS by their use of shipping their products. Spanky is a moron as usual on this subject.

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      dianetrotterposted 7 years agoin reply to this

      Thank you for breaking this out GA.  If it were true that Amazon were getting it's own special deal, that info would be made available.
      
      when people buy from Amazon, they pay shipping online.  At least I do.  Amazon even offers other sellers a shot at their customers.  A much bigger problem is how China and other countries are able to ship stuff free on eBay which costs them practically nothing to make.  I used to sell on eBay.  I've given up because I am unable to compete.
      
      USPS.com has a website where large volume customers can get breaks.  If there were a special deal for Amazon, it would be easy for a disgruntled employee or another shipping company to release it to the media.  Making the statement is one thing.  Proving it is another.

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2. 0

   ahorsebackposted 7 years ago

   The USPS is owned and maintained or more accurately managed by the executive branch of the US government , The president appoints the postmaster General and congress dictates some of the overall working policies of the USPS . The USPS is not a private company.  ...".....An establishment of the executive branch of government ....."   It's kind of a murky definition but the USPS is older in one for or another than the US constitution itself .   
   
   I believe that the USPS also enjoys certain legal federal privileges and importance , My wife has told me once that if a USPS truck, an ambulance , a cop car , and a fire truck all showed up at the same intersection that the USPS truck legally goes first .
   ..........I don't know about that one though .......:-]
   
   I suppose then that Trump can dictate some USPS policy.

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