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Originally Posted by Acepimp
So we're not subsidizing Amazon with $1.46 per package?
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Please try to get your little brain to understand. I quoted your message saying that "he is getting $1.46 of tax money for every package"
That is false. There is no tax money going into the USPS, by law.
As far as being a "subsidy", from the fortune article you posted:
Amazon Getting Huge Subsidy from US Postal Service: Analylst | Fortune
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But Sandbulte’s investment firm holds FedEx stock, meaning he has a direct interest in critiquing the USPS, and his analysis is debatable on several points. He disingenuously describes the pricing situation as “a gift card from Uncle Sam,” which implies there’s tax money involved. But the USPS doesn’t receive tax revenues.
Additionally, USPS’s legal duty to provide universal service means that even at a discount, shipping boxes for Amazon helps it generate revenue from potentially unused capacity. Fixed costs aside, USPS package delivery is profitable, helping subsidize rural service and letter delivery. So there’s room for disagreement about whether the situation is actually unjust.
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That also does not mention the huge investment that Amazon has made in infrastructure that allows it to do the pre-sorting and other associated mailing tasks that would normally fall on the Post Office. An Amazon distribution center is essentially a Post Office of it's own.
I wouldn't be surprised to discover that the Post Office actually makes more money off an Amazon package than it does on other packages.
Now, let's discuss the Post Office doing China and International mail at a loss and therefore injuring small United States businesses because that is actually happening and you aren't hearing a peep out of our fearless leader about it.
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Either way, Amazon is hardly alone in getting a boost from the USPS’s complex pricing. Thanks to international agreements through the United Nations, international shippers—especially those sending small packages from China—often get services at substantially below cost. That puts U.S. stores and domestic online sellers alike at a persistent disadvantage.
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