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In reply to the discussion: Trump Vilifies Amazon, Claims It Uses Postal Service As Its 'Delivery Boy' [View all]mjvpi
(1,931 posts)My intuition tells me that an analysis of Fed Ex and UPS would show a similar treatment of big volume customers. The idea of a loss per package is an analysis of just one side of the USPS. Package vs Mail. The two sides share overhead.
By law the post office has to cover everyone in the US. Fed Ex and UPS only exist in profitable markets. Id bet that in those markets both of those companies undercut the USPS.
All that being said, when I ship anything from my small business, Im getting killed. Shipping costs have sky rocketed as these companies work a small profit margin on the high volume customers.
From what Ive seen of Amazon,s business model, doing the distribution in large cities is imminent. They will undercut the big two shippers just like they have all of the brick and mortar retailers.
I admit that I use Amazon. I have Amazon Prime. The ability to solve problems from my bed at 2:00 am is priceless. The ability to have parts waiting at my shop when I return from a show out of town. Stress relief.
Amazon has out Walmarted Walmart. I beleave in supporting local businesses whenever possible. I routinely will spend more to support them. Those amounts are noise in the grand scenario. I do admit to not being true to those convictions some of the time.