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

The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment.

Amy Hamilton

2019-07-07 18:36:00 Sunday ET

The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment.

The Chinese central bank has to circumvent offshore imports-driven inflation due to Renminbi currency misalignment. Even though China keeps substantial fore

+See More

New computer algorithms and passive mutual fund managers now run the stock market.

Joseph Corr

2019-11-17 14:43:00 Sunday ET

New computer algorithms and passive mutual fund managers now run the stock market.

New computer algorithms and passive mutual fund managers run the stock market. Morningstar suggests that the total dollar amount of passive equity assets re

+See More

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years.

Monica McNeil

2019-10-25 07:49:00 Friday ET

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years.

U.S. fiscal budget deficit hits $1 trillion or the highest level in 7 years. The current U.S. Treasury fiscal budget deficit rises from $779 billion to $1.0

+See More

Americans continue to keep their financial New Year resolutions.

Jonah Whanau

2019-01-15 13:35:00 Tuesday ET

Americans continue to keep their financial New Year resolutions.

Americans continue to keep their financial New Year resolutions. First, Americans should save more money. Everyone needs a budget to ensure that key paychec

+See More

Michel De Vroey delves into the global history of macroeconomic theories from real business cycles to persistent monetary effects.

Laura Hermes

2023-02-07 08:26:00 Tuesday ET

Michel De Vroey delves into the global history of macroeconomic theories from real business cycles to persistent monetary effects.

Michel De Vroey delves into the global history of macroeconomic theories from real business cycles to persistent monetary effects. Michel De Vroey (2016)

+See More

Buffett discusses Berkshire's cash ambition, its reinsurance business, and his succession plan.

Becky Berkman

2018-02-23 09:35:00 Friday ET

Buffett discusses Berkshire's cash ambition, its reinsurance business, and his succession plan.

Warren Buffett releases his annual letter to Berkshire Hathaway shareholders as of February 2018. Buffett discusses Berkshire's core cash ambition, its

+See More