U.S. Postal Service made $1.6 billion profit on Amazon deliveries last year

[Joe White]

In brief: The U.S. Postal Service (USPS) generated a huge $1.6 billion in profit from Amazon deliveries in the 2019 fiscal year, debunking claims from President Trump that the service loses money on Amazon shipments. Meanwhile, Amazon has been building up its own delivery logistics, accounting for nearly half of all deliveries, and consequently reducing its reliance on USPS, dropping from 60 percent to less than 35 percent of all packages delivered.

The information comes from internal emails and financial statements obtained by the American Oversight watchdog group and shared in a report from the Washington Post. According to the information, USPS delivered 1.54 billion Amazon packages in the 2019 fiscal year, amounting to 30 percent of the company’s volume.

President Trump recently criticized Amazon and CEO Jeff Bezos, claiming that USPS loses money whenever Amazon ships a package to a customer. Trump also claimed that USPS “have to” raise their prices for delivering packages for Amazon.

President Trump says the U.S. Postal Service "have to" raise prices for delivering packages for Amazon.

USPS has become a focal point for Congress and the 2020 election https://t.co/sCnjaLeWXv pic.twitter.com/OBMxnYS1rl

— Bloomberg (@business) August 17, 2020

The leaked documents, however, indicate that USPS does make a profit on Amazon shipments. In some cases, this income is quite significant – combined, it stands at $1.6 billion in profit (out of $3.9 billion in revenue) for the 2019 fiscal year.

Meanwhile, Amazon has been building up its own logistics arm: in June last year, we heard that Amazon Logistics was delivering some 48 percent of its own packages. At the time, the USPS’s contribution had dropped from 60 percent to 35 percent. The share of UPS and FedEx, who delivered fewer packages for Amazon, stayed the same at 16.5 and 1.6 percent, respectively.

Permalink to story.

https://www.techspot.com/news/86810-us-postal-service-made-16-billion-profit-amazon.html

 

[Prosercunus]

Obtained by the WaPo. Might as well just say Amazon claims Amazon isn't ripping off the USPS.

 

[ColdSoup]

I don't want to read politics on TechSpot. Can we please get less of the political hit piece type articles? I get it that Amazon happens to be a big tech company, but USPS profitability isn't something I want to be reading about here.

 

[yRaz]

In the same way that tow truck drivers don't make as much money on AAA calls, USPS makes less money per package on Amazon deliveries. While they postal service still "made money", although I assume that's revenue, not profit, as I only see one number. It also makes no mention of the $13 billion dollar subsidy and $10 billion loan cited in the article. So I'd argue that Trump is correct in saying that the post office isn't making money. The political reasons for USPS's financial troubles is another discussion altogether so I won't go there. If you're curious what those reasons are they're in the articles cited.

If you're going to put garbage politics on a tech website please at least post all the facts in the articles you cited. Or better yet, don't post politics at all. We're geeks and techies, we have enough things to argue over already.

 

[Uncle Al]

Only to point out that the USPS is not a business, just a service mandated by the Constitution .... any way they can reduce the cost of said services is for the benefit of the tax payer and as stated by others, this really has no place on TECHSPOT so please avoid future postings .....

 

[Plutoisaplanet]

Only to point out that the USPS is not a business, just a service mandated by the Constitution .... any way they can reduce the cost of said services is for the benefit of the tax payer and as stated by others, this really has no place on TECHSPOT so please avoid future postings .....

It's not mandated by the constitution but authorized by the constitution, but otherwise I agree. https://en.wikipedia.org/wiki/Postal_Clause

 

[Endymio]

>> "...debunking claims from President Trump that the service loses money on Amazon shipments."

Joe White, you really should leave your politics at the door, especially on a Tech site. In addition, your argument (or rather, WaPo's argument ) is flawed to the core. The "profits" in question are based on the USPS's current cost-accounting model, which charges the lion's share of the cost of fixed-plant expenses to mail, not packages -- despite packages making up an ever-increasing share of both revenues and storage/transport costs. The argument being made by many people -- one Trump did not create, but merely latched onto -- is that this cost-accounting is inherently inaccurate, and gives packages a "free ride".

 

[toooooot]

Obtained by the WaPo. Might as well just say Amazon claims Amazon isn't ripping off the USPS.

If it is indeed by WaPo, I d not trust this, speaking as someone who subscribed and even thought it is an objective, trustworthy news source.
No, they are not. They are a very single minded entity that is very unfortunately is lacking anything resembling objectivity or even human decency.

 

[EClyde]

The postman I talked to said the USPS gets 50 cent a package from Amazon.

 

[PEnnn]

So, the USPS is doing fine despite all the Trumpist sabotage?? Amazing!

Nothing beats a small article showing how ignorant our Incompetent in Chief is to trigger his fans about a "political article'!

Other political articles that don't trigger them or meet their agenda are just fine it seems.

 

[MasterMace]

although I assume that's revenue, not profit

If you're going to put garbage politics on a tech website please at least post all the facts in the articles you cited.

"The U.S. Postal Service (USPS) generated a huge $1.6 billion in profit from Amazon deliveries in the 2019 fiscal year"

Literally the first half of the first sentence says it was profit. Take your own advice and stop posting garbage.

 

[Endymio]

Literally the first half of the first sentence says it was profit.

And the first half the sentence is false. Learn what the debate is about before attempting to enter it.

This is not the first time WaPo has published false claims about the USPS and Trump, as when they blamed Covid-era mail slowdowns on Trump appointee Dejoy, despite the fact those slowdowns, and the policies which led to them, began before he even took office.

 

[dirtyferret]

People with an IQ higher then 10 don't believe a single word out of the racist orange mouth of trump. Sure he have his simpleton followers who believe in exploding trees and his tax returns are still be audited but that's the bottom of the barrel of society.

 

[Gaminbashy23]

I don't want to read politics on TechSpot. Can we please get less of the political hit piece type articles? I get it that Amazon happens to be a big tech company, but USPS profitability isn't something I want to be reading about here.

What is the "hit piece" here? Perhaps the information is of interest to some. Everyone can do their own research if they don't agree and post back their own analysis. Otherwise you are just calling for censorship.

 

[Gaminbashy23]

Joe White, what is wrong with you ? This aint CNN, it's supposed to be TECHspot.

This also aint Fox News. Data and debate is actually allowed. Post your own analysis if you disagree.

 

[Gaminbashy23]

Obtained by the WaPo. Might as well just say Amazon claims Amazon isn't ripping off the USPS.

This literally also says that Amazon is trying to move off the USPS which is not great news for them. Sorry that WaPo has exposed shenanigans of the current adminstration and that makes them a target. Argue with the reporting with specifics of what is incorrectly reported please.

 

[ColdSoup]

This also aint Fox News. Data and debate is actually allowed. Post your own analysis if you disagree.

Here's my analysis: TechSpot will not be allowed through my ad blocker settings if I keep seeing stuff like this getting posted. If I wanted politically biased news, I would just go read Fox or CNN. There is a place for that stuff, but it's not here.

 

[koblongata]

USPS loses my parcels too

 

[Gaminbashy23]

And the first half the sentence is false. Learn what the debate is about before attempting to enter it.

This is not the first time WaPo has published false claims about the USPS and Trump, as when they blamed Covid-era mail slowdowns on Trump appointee Dejoy, despite the fact those slowdowns, and the policies which led to them, began before he even took office.

Right - Dejoy donates $1.2M to Trump, and now is an innocent bystander?

"On Aug. 13, 2020, during an interview on Fox Business Network, the president said frankly the tug-and-pull over Postal Service funding was part of his administration’s plan to try to make it harder for the agency to handle the expected surge in mail-in ballots in the November election. “If we don’t make a deal, that means they don’t get the money,” Trump told host Maria Bartiromo, referring to the false claim that Democrats are are proposing a universal mail-in voting system. “That means they can’t have universal mail-in voting; they just can’t have it.”" - https://www.snopes.com/fact-check/usps-slowing-mail-trump/

 

[Adorerai]

What’s so funny is that when I did data entry for USPS, they considered Fedex and UPS as competitors. A subsidized government entity who would collapse if they relied solely on their own revenue. The USPS is “doping” just to maintain any semblance of competitiveness.

What would have made this an actual story is if the USPS made any profit period.

 

[ColdSoup]

Here is a pretty good source to show that this article is pretty nonsensical: The USPS itself.
https://about.usps.com/who-we-are/postal-history/pieces-of-mail-since-1789.htm

USPS lost $8.725 billion in 2019 according to it's own about page. Where is this alleged $1.6 billion profit exactly? It's just an accounting sham and nothing more.

 

[Gaminbashy23]

Here is a pretty good source to show that this article is pretty nonsensical: The USPS itself.
https://about.usps.com/who-we-are/postal-history/pieces-of-mail-since-1789.htm

USPS lost $8.725 billion in 2019 according to it's own about page. Where is this alleged $1.6 billion profit exactly? It's just an accounting sham and nothing more.

The real sham is Trump claiming that Amazon is scamming USPS with parcels when the data shows otherwise. This all is nothing but a naked political play in an election yet by Trump to hobble USPS, attack Amazon (by extension WaPo that publishes unflattering exposes), and cause chaos at the voting booth by slowing down mail in voting and let Trump claim fraud and cause yet another crisis to stay in power if the votes don't go his way. It did not need to be this way. USPS should not be a political issue in the middle of a pandemic when people are getting a once in 4 years opportunity to exercise right to vote for President - and that only, only in a few swing states that count! What is happening people?? Why can't this be a sane process. Why has it come to this?

 

[ColdSoup]

The real sham is Trump claiming that Amazon is scamming USPS with parcels when the data shows otherwise. This all is nothing but a naked political play in an election yet by Trump to hobble USPS, attack Amazon (by extension WaPo that publishes unflattering exposes), and cause chaos at the voting booth by slowing down mail in voting and let Trump claim fraud and cause yet another crisis to stay in power if the votes don't go his way. It did not need to be this way. USPS should not be a political issue in the middle of a pandemic when people are getting a once in 4 years opportunity to exercise right to vote for President - and that only, only in a few swing states that count! What is happening people?? Why can't this be a sane process. Why has it come to this?

Again, I'm not saying I necessarily disagree, I just don't want Techspot to be another CNN/Fox News either way. The newest article today on TSMC's wafers is exactly the kind of content I am here for, not this political stuff.

 

[Chemicalfaerie]

I don't want to read politics on TechSpot. Can we please get less of the political hit piece type articles? I get it that Amazon happens to be a big tech company, but USPS profitability isn't something I want to be reading about here.

You did not need to click on the link and certainly did not need to comment.

 

[klee2020]

Again, I'm not saying I necessarily disagree, I just don't want Techspot to be another CNN/Fox News either way. The newest article today on TSMC's wafers is exactly the kind of content I am here for, not this political stuff.

Trump's crazy policies have affected most industries - tech included. His brand of politics pisses on science and technology, so it is only fair that techspot covers them. Even the long standing science publication decided to break their 170 year old norm and endorsed a candidate who values science over lies.

Techspot readers are voters too, need to be exposed to this White House's shenanigans - like banning Huawei, Tiktok etc.

If u dont like it, dont read it.