The Detroit Post
Wednesday, 08 December, 2021

Does Amazon Use Usps

James Smith
• Thursday, 12 November, 2020
• 8 min read

Postal Service has launched a review of package delivery contracts with Amazon .com, United Parcel Service Inc, FedEx and other large shippers, The Washington Post reported on Thursday, citing six people with knowledge of agency operations. USPS has sought bids from consulting firms to assess what the agency charges companies to deliver products on their behalf, the Post said.

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He says it charges too little to deliver packages sent by retailers such as Amazon, whose founder and Chief Executive Jeff Bezos also owns the Washington Post, which has been critical of the president. The Postal Service Board of Governors, made up of Trump appointees, recently tapped Louis DeJoy to be the new postmaster general.

Congress authorized the Treasury Department to lend the Postal Service up to $10 billion as part of a $2.3 trillion coronavirus stimulus package. The service already delivers medicines while the pandemic has also boosted interest in voting by mail rather than crowding into polling places for the November presidential election.

Amazon's relationship with the US Postal Service has become political fodder in recent years as Trump has demanded USPS to up its rates on the mega retailer. Industry experts say Amazon does indeed take advantage of not only USPS's low rates but also its imperative to deliver to every address in the US.

That's because the retail giant relies on the quasi-governmental agency, which receives no tax money, to build out its own delivery network. In addition to relying on carriers like USPS and UPS to deliver packages, Amazon is its own largest delivery company.

Amazon, along with dropping off packages at costumers' homes, is now able to move a good from its factory overseas to your doorstep through an internal network of ocean freighters, trains, planes, and trucks. In the “final mile,” Amazon delivers about 46% of its own packages, according to a December Morgan Stanley analysis of about 70,000 transactions over nine years.

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Industry wide, 60% of packages go to suburban homes, 20% go to urban areas, and another 20% go to rural places, according to the Morgan Stanley analysis. “To build a B2C network from scratch, we believe it makes more sense to build a network that only services dense urban areas (the aforementioned 28% of the zip codes) and rely on the USPS or third-party delivery partner to go to rural or other areas with lower delivery density,” Morgan Stanley's analysts wrote in December.

In other words, losing Amazon as a customer would decimate the US Postal Service's revenues but wouldn't save the company enough money to make up for it. “Certainly, with their popularity and the amount of packages that are shipped, Amazon has been effectively a lifeline for the post office in a lot of ways,” Cottony said.

It also gives some credence to worries from business leaders, politicians, and activists alike that there are few industries safe from Amazon ’s ambition and reach. One of Amazon ’s goals is to take more control over the delivery experience to try to avoid a replay of the 2013 fiasco, though there are still occasional holiday hiccups.

In these instances, Amazon would act in many ways like a traditional shipping company, handling everything from picking up orders at a merchant’s warehouse to executing the final delivery to their customer’s door. Today’s announcement boasted of the 90,000 US jobs that Amazon Logistics has created at its delivery facilities, but workers who help organize packages in at least three of the company’s US delivery stations have protested working conditions in just the last few months, filing labor complaints, walking off the job, and circulating petitions asking for paid time off.

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As the New York Times noted in 2013, legal constraints imposed on the Postal Service by Congressional fiat have hampered its profitability for years: But an even bigger cause of the financial decline is a 2006 law that requires the Postal Service, unlike any other government agency, to pay $5.5 billion a year into a health fund for its future retirees.

That’s because federal law “requires the revenue for each competitive product to cover its attributable cost,” and the balance sheet is closely monitored by the Postal Regulatory Commission (PRC), an independent agency. In his second venture, Blue Origin, Jeff Bezos doesn’t have the luxury of using an existing infrastructure like the USPS for Amazon.

Remember President Donald Trump’s “obsession” with Amazon during March 2018, when he slammed the e-commerce giant in a week-long tweet storm, accusing it of unfairly exploiting the U.S. It existed: It was called the post office,” Bezos told CBS’s Norah O’Donnell.

Which is why last year it finally launched its own logistics system, powered by at least 50 airplanes, 300 semi-trucks and tens of thousands of Amazon vans. Since hiring its own shipping staff, the e-commerce giant has frequently faced criticism for underpaying workers, putting them in subpar working conditions and not providing standard healthcare benefits.

Have yet to see First Class Mail take more than 7 days, and that was from Ohio to Los Angeles. If they pay for Expedited shipping or it’s heavy enough to require Priority, it goes UPS Ground or FedEx 2Day.

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With the obvious reminder to require a signature above $100, and to use Amazon By Shipping to defend yourself from fraudulent INR claims. I receive shipments nearly every day from most major carriers (USPS, FedEx, UPS, DHL) and at most the driver may ask if it is OK for them to sign for me.

That can make a huge difference in shipping speed these days… non-machinable package end up in a bin in the corner --until somebody gets around to playing & fondling with them… they are usually the last thing dealt with… Sheik: I stopped using USPS for anything other than “Standard” shipping this past month.

Have yet to see First Class Mail take more than 7 days, and that was from Ohio to Los Angeles. If they pay for Expedited shipping or it’s heavy enough to require Priority, it goes UPS Ground or FedEx 2Day.

)…fair enough, but that doesn’t explain the 3-week delivery timeframe to the next state over from me…those usually go by truck anyway. I have a customer service rep who gave me an USPS email address to open cases.

So far that has worked pretty well but I like to put as much pressure as I can on them to get packages moving and delivered. You all might also be interested in reading and contributing to this current thread: USPS Mailing Times in July.

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I’m putting my account into vacation mode until Jeffrey Bezos locates his sack. But I wondered if after they issue the refund if we would be able to file a Safe-T claim to get reimbursed since shipping problems aren’t our fault.

Some of them have been longer envelopes and I don’t see the problem with them but it does seem to be the same size of packages that are being delayed. These were actually cheaper than the round tubes I was buying from Line…these don't roll so it seems to have solved that issue but still getting delays on non-tubed mailings lately.

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