President Trump targets Amazon in his call for U.S. Postal Service to charge higher delivery prices on the ecommerce giant.

Laura Hermes

2018-01-03 08:38:00 Wed ET

President Trump targets Amazon in his call for U.S. Postal Service to charge high delivery prices on the ecommerce giant. Trump picks another fight with an online retail giant that he has criticized during the presidential campaign. Now U.S.P.S. runs a substantial net loss and serves as an independent agency within the federal government with minimal tax dollars for operating expenses. Package delivery has become an increasingly important part of U.S.P.S. business because the Internet has led to a sharp decline in the amount of first-class letters.

U.S.P.S. delivers 60%+ of Amazon packages with about 4 million parcels per day during the current peak year-end holiday shipping season. Amazon's other major carriers are UPS and FedEx that collectively account for about 30% of Amazon parcels. Both UPS and FedEx have long voiced their key concerns and complaints about U.S.P.S. cost structure. In fact, U.S.P.S. deficit has ballooned to about $62 billion, and this situation cannot sustain in the long run. If the Trump administration induces U.S.P.S. to charge more on Amazon packages, the ecommerce giant may pass higher costs onto key American consumers and small businesses. Worldwide delivery operations may become too expensive to the detriment of consumers. The status quo remains a time-worn impasse between ecommerce and postal service. 

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

America and China play the game of chicken over trade and technology.

John Fourier

2018-05-01 11:38:00 Tuesday ET

America and China play the game of chicken over trade and technology.

America and China play the game of chicken over trade and technology, whereas, most market observers and economic media commentators hope the Trump team to

+See More

U.S. trading partners such as the European Union, Canada, China, Japan, Mexico, and Russia voice their concern at the WTO.

James Campbell

2018-07-05 13:40:00 Thursday ET

U.S. trading partners such as the European Union, Canada, China, Japan, Mexico, and Russia voice their concern at the WTO.

U.S. trading partners such as the European Union, Canada, China, Japan, Mexico, and Russia voice their concern at the World Trade Organization (WTO) in ligh

+See More

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Laura Hermes

2019-11-21 11:34:00 Thursday ET

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression.

Berkeley macro economist Brad DeLong sees no good reasons for an imminent economic recession with mass unemployment and even depression. The current U.S. ec

+See More

President Donald Trump unveils the dramatic *tax overhaul proposal*.

Daisy Harvey

2017-04-13 10:42:00 Thursday ET

President Donald Trump unveils the dramatic *tax overhaul proposal*.

President Donald Trump unveils the dramatic *tax overhaul proposal*. Through this tax plan, Trump replaces the current 7 income tax brackets with 3 leane

+See More

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Daisy Harvey

2019-09-11 09:31:00 Wednesday ET

Central banks in India, Thailand, and New Zealand lower their interest rates in response to the Federal Reserve rate cut.

Central banks in India, Thailand, and New Zealand lower their interest rates in a defensive response to the Federal Reserve recent rate cut. The central ban

+See More

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

Andy Yeh Alpha

2019-02-28 20:44:00 Thursday ET

AYA Analytica podcast provides fresh insights into the latest stock market news, economic trends, and investment portfolio strategies.

AYA Analytica finbuzz podcast channel on YouTube February 2019 In this podcast, we discuss several topical issues as of February 2019: (1) our proprieta

+See More