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Postal Arbitrage

walzr.com

111–120 of 293 posts

Re: Postal Arbitrage

#111
post #39

This story comes to my mind. A pizzeria owner made money buying his own $24 pizzas from DoorDash for $16 https://www.theverge.com/2020/5/18/21262316/doordash-pizza-p...

Note: the Verge article links to this blog post, describing the situation in more detail: https://www.readmargins.com/p/doordash-and-pizza-arbitrage

They could have made another $5 per 10 pizzas after order #1 by just delivering the pizza to themselves and sending the same boxes back out in the next delivery, and so on.

Re: Postal Arbitrage

#112
post #84

Has this person tried it? Doesn't Amazon shipping have to go to the billing address on the credit card? Being able to purchase on a credit card and have it sent anywhere makes it that much easier to use stolen credit cards.

> Doesn't Amazon shipping have to go to the billing address on the credit card? No, I've had stuff shipped to plenty of addresses.

It looks like the billing address restriction was a "thing" years ago, but is simply too impractical for modern day e-commerce. People want to do gifting, or get things delivered to temporary accomodations like vacation spots. They are relying on approaches like heuristics (sudden purchase for something expensive going to an unusual address), plus CVV verification to help ensure that the purchaser physically has the card (still allows theft, but adds a layer).

Re: Postal Arbitrage

#113

Earlier quoted context omitted.

I don't think Amazon is losing money. It's really just that efficient. E.g. an Amazon van rolls through my street multiple times a day. What is the marginal cost of them stopping at my house and dropping off a potato?

At your house it might be fractions of a cent. At my house, it's a 140 mile round trip between the fulfillment center ("are you feeling fulfilled yet?") and the drop off location. OTOH, there's likely more of "you" than there are of "me" ...

Assuming it's the US we're talking about, the federal minimum wage is $7.25, which means that if every worker involved is paid at the minimum wage, you incur a cent of labour costs every 4.97 person-seconds. AFAICT, most Amazon workers are paid substantially higher than the federal minimum wage. And that's just labour costs.

While Amazon is efficient, "fractions of a cent" is probably the wrong order of magnitude for even the most efficient order.

Re: Postal Arbitrage

#114

Earlier quoted context omitted.

If you want to fight the VCs, you have to pull stunts like this. If they want to destroy local infrastructure because "free market", in an attempt to secure monopolies for themselves, then let them operate in a free market.

> then let them operate in a free market. I think you meant to say "operate in a market that is regulated in precisely the way they want it to be".

I said what I meant: most VC-backed startups could not survive in a real-world environment. Thank you for highlighting the distinction. Note that a free market isn't necessarily an unregulated market (see: Adam Smith).

Personally, I don't believe that free markets are a sensible way to manage local affairs. They work well on a medium scale, where goods are fungible and efficiency matters: but for something like the local pizza place, customer behaviour doesn't match that of a market participant. I don't think it's sensible to expect the local pizza place to be free of arbitrage opportunities. Someone who identifies and exploits such opportunities (e.g. "free meals available on request") would be taking advantage of goodwill, and the reason we can't have nice things. However, if a large corpo comes along and starts trying to undercut the locals, absolutely mug them for all they're worth: they're playing a different game, and it's not one you should want them to win.

Re: Postal Arbitrage

#115
I get the point, but this seems pretty out of date. Seems like it needs a [2025] (?) at least.

A couple of these are still valid with Prime, but most of them are Amazon Fresh items ($9.95 service fee for orders under $50), or out of stock, or the price is now way more.

Re: Postal Arbitrage

#116
Tempted to start paying cash to mates to drive us to and from the airport. We have to pay for the ride either way - may as well put it in a friend’s pocket.

Tempted to vibecode a little tool to manage ride requests..

Re: Postal Arbitrage

#117
post #16

Ah, luckily the climate doesn't mind that oil was extracted, a phone case was produced out of it, shipped from China, to end up not even being used but just as a "greeting card". Why yes, I am fun at parties.

The oil used for shipping from Shenzhen to Long Beach is completely trivial compared to what the truck used getting it from Long Beach to Pasadena.

oh okay then that consumption is totally fine. no worries here mate!

Re: Postal Arbitrage

#118

Earlier quoted context omitted.

I don't think Amazon is losing money. It's really just that efficient. E.g. an Amazon van rolls through my street multiple times a day. What is the marginal cost of them stopping at my house and dropping off a potato?

At your house it might be fractions of a cent. At my house, it's a 140 mile round trip between the fulfillment center ("are you feeling fulfilled yet?") and the drop off location. OTOH, there's likely more of "you" than there are of "me" ...

You might be 140 miles round trip to the nearest fulfilment centre, but you're almost certainly closer to your nearest neighbours who regularly buy stuff from Amazon, so the van is probably coming pretty close to you any way.

Re: Postal Arbitrage

#119
post #60

Here in Ireland, a stamp is 1.85eur. So. Many. Possibilities.

Wow didn't realize its much more expensive in some places outside the US. I'd think the smaller land area would make it cheaper.

In Denmark it is €3.08 for a 100g letter.

This appears to be the cost without subsidy, with the mail service now run by a private company.

It's fine. I receive less than the average 10 letters per year (including junk mail). I check the mail box every two weeks or so.

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