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USPS delivering on Labor Day.
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<blockquote data-quote="worldwide" data-source="post: 3056922" data-attributes="member: 2193"><p>"In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. <strong>An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam.</strong>"</p><p></p><p><a href="http://www.washingtonexaminer.com/for-every-amazon-package-it-delivers-the-postal-service-loses-146/article/2632857" target="_blank">For every Amazon package it delivers, the Postal Service loses $1.46</a></p><p></p><p>Keep in mind, First-class mile is a monopoly for the USPS - no one else can deliver it. Not really a loophole but just an oddity in postal regulations that the government has been unwilling to address. USPS happy to get the Amazon volume to stay in business and Amazon happy to get ultra cheap rates. The by product is that retailers can't compete and more and more go out of business. For UPS and FedEx, they lose business to the USPS.</p><p></p><p>The Teamsters should be all over this as it is costing them membership. If the USPS charged market appropriate rates, UPS and FedEx would be more competitive and there would be more volume in their systems.</p><p></p><p>Perhaps this is something the <a href="http://money.cnn.com/2017/08/16/investing/donald-trump-amazon-jeff-bezos-retail/index.html" target="_blank">Trump administration</a> will look into if enough people write to their representatives to complain about this unfair competition.</p></blockquote><p></p>
[QUOTE="worldwide, post: 3056922, member: 2193"] "In 2007 the Postal Service and its regulator determined that, at a minimum, 5.5% of the agency’s fixed costs must be allocated to packages and similar products. A decade later, around 25% of its revenue comes from packages, but their share of fixed costs has not kept pace. First-class mail effectively subsidizes the national network, and the packages get a free ride. [B]An April analysis from Citigroup estimates that if costs were fairly allocated, on average parcels would cost $1.46 more to deliver. It is as if every Amazon box comes with a dollar or two stapled to the packing slip—a gift card from Uncle Sam.[/B]" [URL='http://www.washingtonexaminer.com/for-every-amazon-package-it-delivers-the-postal-service-loses-146/article/2632857']For every Amazon package it delivers, the Postal Service loses $1.46[/URL] Keep in mind, First-class mile is a monopoly for the USPS - no one else can deliver it. Not really a loophole but just an oddity in postal regulations that the government has been unwilling to address. USPS happy to get the Amazon volume to stay in business and Amazon happy to get ultra cheap rates. The by product is that retailers can't compete and more and more go out of business. For UPS and FedEx, they lose business to the USPS. The Teamsters should be all over this as it is costing them membership. If the USPS charged market appropriate rates, UPS and FedEx would be more competitive and there would be more volume in their systems. Perhaps this is something the [URL='http://money.cnn.com/2017/08/16/investing/donald-trump-amazon-jeff-bezos-retail/index.html']Trump administration[/URL] will look into if enough people write to their representatives to complain about this unfair competition. [/QUOTE]
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