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 world seeks to reduce medicine prices and other health care costs to better regulate big pharma.
Daisy Harvey

2019-06-07 04:02:05 Friday ET

The world seeks to reduce medicine prices and other health care costs to better regulate big pharma.

The world seeks to reduce medicine prices and other health care costs to better regulate big pharma. Nowadays the Trump administration requires pharmaceutic

+See More
Financial institutions benefit from higher equity risk premiums and interest rate spreads.
Charlene Vos

2017-04-01 06:40:00 Saturday ET

Financial institutions benefit from higher equity risk premiums and interest rate spreads.

With the current interest rate hike, large banks and insurance companies are likely to benefit from higher equity risk premiums and interest rate spreads.

+See More
Thomas Piketty connects the dots between economic growth and inequality worldwide with long-term global empirical evidence.
Chanel Holden

2021-07-07 11:38:00 Wednesday ET

Thomas Piketty connects the dots between economic growth and inequality worldwide with long-term global empirical evidence.

Thomas Piketty connects the dots between economic growth and inequality worldwide with long-term global empirical evidence. Thomas Piketty (2017) &nbs

+See More
The recent British pound depreciation is a big Brexit barometer.
Apple Boston

2019-08-20 07:33:00 Tuesday ET

The recent British pound depreciation is a big Brexit barometer.

The recent British pound depreciation is a big Brexit barometer. Britain appoints former London mayor and Foreign Secretary Boris Johnson as the prime minis

+See More
OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.
Monica McNeil

2019-04-01 08:28:00 Monday ET

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes.

OraSure and its subsidiary DNA Genotek specialize in the lean production of home DNA spit tubes. OraSure extracts core genetic information from microbiome s

+See More
Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo.
Peter Prince

2020-08-12 07:25:00 Wednesday ET

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo.

Most sustainably successful business leaders make a mark in the world, create a positive impact, and challenge the status quo. Jerry Porras, Stewart Emer

+See More