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Government
Why the Post Office Gives Amazon Special Delivery
2017-07-15

[WSJ] A Citigroup analysis finds each box gets a $1.46 subsidy. It's like a gift card from Uncle Sam.
Key point in article:
Amazon is big enough to take full advantage of "postal injection," and that has tipped the scales in the internet giant's favor. Select high-volume shippers are able to drop off presorted packages at the local Postal Service depot for "last mile" delivery at cut-rate prices. With high volumes and warehouses near the local depots, Amazon enjoys low rates unavailable to its competitors. My analysis of available data suggests that around two-thirds of Amazon's domestic deliveries are made by the Postal Service. It's as if Amazon gets a subsidized space on every mail truck.
Amazon does most of the shipping then deliver to local post offices for "last mile" delivery instead of their own brown trucks...What's the problem?

Much more at link.
Posted by:Seeking cure for ignorance

#9  I live a few miles from one of Amazon's public pickup points. I don't mind driving down there the next day to pick up a Prime order, it's rather fun to get something that fast for so little extra (or even for less).
Posted by: Anguper Hupomosing9418   2017-07-15 20:42  

#8  It should be pointed out that Amazon started this I believe in 2014 where in 2013 Fed Ex and UPS dropped the ball and blew off alot of next day shipments for Xmas. Amazon had to refund quite a bit of money for packages that were not deliverd in time for Xmas. At the same time the post office was really needing business . Having worked in one of the sort centers works like this, trucks come from the fulfillment centers they get unloaded and sorted to zip code then they are sent to those PO for finial delivery. There were even some pallets destined for APO/FPO( we were told they were destined for a freight forwarder) from the names I guess they were headed for the sandbox. Also they are starting to use their own trucks for some high volume areas
Posted by: Pliny Glons2836   2017-07-15 20:37  

#7  Given that Amazon sucked up the cost of transportation and handling up to the 'last mile', its the competitors that are having a problem. Adapt or perish.

Yup. The internet, especially Amazon, is the small/medium business' greatest competition. I understand even the big boys are getting a little antsy, such as Wal-Mart dabbling with the idea of a delivery service in addition to their normal on-line activities.

Like Besoeker pointed out, I used to slam my hand when I could find on Amazon/etc. my stock item for 20% less than my distributor's price to me. Judo, baby. Lots of people (speaking locally of course) do not have credit cards, do not use credit cards on-line, do not have the time or talent for searching, so we provide at a minimum fee internet shopping for said groups which includes Amazon. We take the delivery, inspect, send back if damaged, call when in, even deliver if person is unable to make it here.
Posted by: swksvolFF   2017-07-15 14:45  

#6  If Amazon can pull it off, more power to them. I have no complaints.
Now, there's the USPS....
Posted by: DooDahMan   2017-07-15 14:27  

#5  And then there is this.
Posted by: Procopius2k   2017-07-15 12:15  

#4  Just came back from a visit to my local P.O. Clerk said this week, after Amazon Prime Day, their parcel work load has tripled. They get pallets full of parcels. No wonder Amazon gets a discount.
Posted by: Anguper Hupomosing9418   2017-07-15 11:23  

#3  Amazon does most of the shipping then deliver to local post offices for "last mile" delivery instead of their own brown trucks...What's the problem?

Given that Amazon sucked up the cost of transportation and handling up to the 'last mile', its the competitors that are having a problem. Adapt or perish. From a different perspective, it appears the USPS is leveraging their assets to keep their game going. They, USPS, need the business since 1st Class Mail has been cratering.
Posted by: Procopius2k   2017-07-15 09:53  

#2  Except I have no mail delivery at my house - I use a PO Box. So, since January 2016 packages went to the post office and I had to drive downtown and shlep them home. All were late. (And, should you try to sent Prime to a PO box, you are told it can't be done! ) A year of complaints got me nowhere. Then, magically, this January my Prime packages started appearing at my front door again and all is well with the world.
Posted by: KBK   2017-07-15 09:12  

#1  You decide:

Lucid Optics - L7 1x 6x 24 - $449.
Amazon - L7 1x 6x 24 - $344.81
Posted by: Besoeker   2017-07-15 08:31  

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