Trump Says Amazon Is Getting ‘Richer’ and the Post Office ‘Dumber and Poorer’ Off Low Delivery Rates

Fortune reports…

President Donald Trump said Friday the U.S. Postal Service should charge Amazon more to deliver packages, the latest in a series of public criticisms of the online retailer and one that sent the company’s stock lower in pre-market trading.

The post office “should be charging MUCH MORE” for package delivery, the president tweeted from his Mar-a-Lago estate in Florida, where he’s been spending the holidays.

“Why is the United States Post Office, which is losing many billions of dollars a year, while charging Amazon and others so little to deliver their packages, making Amazon richer and the Post Office dumber and poorer?” Trump told his 45 million followers.

PEN Editor…

We believe President Trump is absolutely correct with his tweet – USPS SHOULD charge Amazon more along with higher prices for UPS and FedEx. And, because of PAEA regulations/requirements USPS IS losing tons of money each year – without PAEA USPS would be showing a profit. The last part of his tweet “making Amazon richer and the Post Office dumber and poorer?” is also accurate.

Fortune continues…

Amazon regularly uses the U.S. Postal Service to complete what’s called the “last mile” of delivery, with letter carriers dropping off packages at some 150 million residences and businesses daily.

While full details of the agreement between Amazon and the Postal Service are unknown—the mail service is independently operated and strikes confidential deals with retailers—David Vernon, an analyst at Bernstein Research who tracks the shipping industry, estimated in 2015 that the USPS handled 40% of Amazon’s volume the previous year. He estimated at the time that Amazon pays the USPS $2 per package, which is about half what it would pay United Parcel Service and FedEx. Read more from Fortune

PEN Editor…

It is our opinion that President Trumps tweet is right on the money.

More news on this subject…

CNBC: Trump targets Amazon in call for postal service to hike prices

Wall Street Journal: Trump Criticizes Postal Service for Charging Amazon ‘So Little’

Daily Mail: Trump says Amazon should pay ‘MUCH MORE’ to ship packages as he claims current deal makes web giant – and foe Jeff Bezos – richer while the Postal Service loses money

One Response to "Trump Says Amazon Is Getting ‘Richer’ and the Post Office ‘Dumber and Poorer’ Off Low Delivery Rates"

  1. Postal Joe   December 29, 2017 at 12:00 pm

    PEN Editor Rick, You are absolutely correct in your assessment of the President’s tweet!! Amazon needs to be paying more for postage, it certainly can afford it!! The extremely cheap postage that the vendors from China get when sending packages to the US should also be looked into also! The USPS loses money with so many “sweetheart” deals at a time when it can’t afford to do business that way!! And yes, PAEA needs to be eliminated!!

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