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Trump: Post Office loses $1.50 on avg for each package it delivers for Amazon

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Re: Trump: Post Office loses $1.50 on avg for each package it delivers for Amazon

#11
post #2

Citation? Follow up questions: 1. How much of that is fixed cost that has to be paid (if not by Amazon then by other customers) 2. How does -$1.5/package for Amazon compare to other shippers? E.g. how much does USPS lose on Walmart? My understanding is the USPS is structurally designed to lose money as a subsidy to society for communication/interaction over long distances. I'm fully in favor of revisiting whether tha…

Your second question is the key: the USPS exists to encourage business. It loses money on most, if not all, package plans it has with businesses. It does not seek to gain profit.

Re: Trump: Post Office loses $1.50 on avg for each package it delivers for Amazon

#12
post #2

Citation? Follow up questions: 1. How much of that is fixed cost that has to be paid (if not by Amazon then by other customers) 2. How does -$1.5/package for Amazon compare to other shippers? E.g. how much does USPS lose on Walmart? My understanding is the USPS is structurally designed to lose money as a subsidy to society for communication/interaction over long distances. I'm fully in favor of revisiting whether tha…

Your second question is the key: the USPS exists to encourage business. It loses money on most, if not all, package plans it has with businesses. It does not seek to gain profit.

The USPS does not exist to encourage business. It should not be losing money on business plans. The USPS is solely funded, so losing money on a major part of their business is just bad business
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