Usps Agreement With Amazon

December 19, 2020

However, according to a report by Josh Sandbulte in the Wall Street Journal, USPS has raised the bar for Amazon. The WSJ contributor, whose expertise lies in the shipping industry, explained how the USPS Congress, through the Postal Accountability and Enhancement Act, prevents changes to the price of the package. The act is designed to avoid “unfair competition” with FedEx and UPS. Section 3626 of title 39 United States Code has become one of the frequently cited provisions when restrictions imposed on USPS are considered. Currently, the way the Post Office calculates its parcel delivery costs starts with the additional costs directly attributable to the delivery of parcels or one of its “competitive” business lines, and then adds a “reasonable” surcharge to cover common or institutional costs. While the continuation of the Covid 19 pandemic is prompting states to increase voting procedures, Mr. Trump, who lags in the polls, has said, without evidence, that this regularly leads to massive fraud, raising concerns about the attempt to crack down on voters. In fact, shipping and parcels were the only growth segment for the post office and jumped more than 50% to $8.3 billion in revenue in the third quarter, which ended June 30, after fiscal 2020 results released on August 7. One in two service categories declined in both revenue and volume, partly due to the coronavirus pandemic.

The pandemic increased costs, particularly for personal protective equipment and paid sick leave, contributing to a net loss of $2.2 billion over the period, roughly the same as the previous year. What would happen if Trump were to win and the postal service had to charge as much for a package? This is a pretty good assumption that the postal service would lose many of its largest parcel delivery customers, including Amazon. And without that revenue, the post office would lose far more money than it already loses. This would force him to drastically increase the prices of Aunt Millie and Orvis, who would react with fewer birthday cards and catalogues. And in the end, you`d get a death spiral that would eventually force Congress to shut down the postal service and sell it to the highest bidder. To solve his problems, I think Amazon should proactively turn to Trump to find a solution to make the USPS more efficient and eliminate the significant revenue losses from the mail. The USPS has lost $69 billion since 2007 and will continue to lose money if there are no major reforms. The agency has $110 billion in unfunded debt for pensions and health care, and its staff receive more and more pension benefits each year. In the absence of major restructuring, the USPS is expected to lose tens of billions of dollars over the next decade.

Usps Agreement With Amazon · December 19, 2020 · 5:19 pm
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