Used Fedex Trucks For Sale, The US Postal Service’s proposed price hikes could cost Amazon more than $1 billion after months of criticism from Trump-The American post office offers the excursion rates.
The US Post proposed a price increase that could have a big impact on the Amazon.
Credit Suisse estimates that the price increase can cost up to $ 1.1 billion.
Prices have risen to months of criticism from President Donald Trump, who said that Amazon’s post office offered inappropriate work.
The rise in the US mail can be an Amazon blow.
At the beginning of October, USPS proposed a 12.3 percent increase in the price of light packets. Prices for non-lightweight packets increase by an average of 9.3%. The proposed price increase will enter into force in January 2019, if approved by the Post Office.
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Credit Suisse estimates that Amway’s price increase could cost between $ 400 and $ 1.1 billion, CNBC said.
Amazon, FedEx and UPS use a packing service to deliver the Last Mile package. The low fixed costs of USPS and its payment orders make it an ideal alternative to transport packages from the distribution center to the final destination.
It seems that Amazon is not too concerned about the proposed tariff increase.
“We do not expect significant effects on these changes in interest rates in 2019,” said CFO Brian Olsavsky on Thursday, when the third quarter results were announced.
Trump criticized the Amazons agreement with USPS for months.
“The Amazon Washington Post has lost its crazy since it lost its anti-money tax solution two months ago to the Supreme Court of the United States,” Trump said in July. “The next step is the American message that he uses as a” messenger “for most of the packets in a fraction of the actual cost.” In April, Trump issued an order to set up a working group to investigate USPS and its “unsustainable tax”. The decision found that USPS has lost $ 65 billion after a major downturn and has to “steer it so taxpayers can not finance taxpayers”.
USPS spokesman earlier this month told BusinessInterider by email that the price increase was not a response to Trump’s criticism.
“The price increase reflects the best criteria for stamp managers who want to introduce new prices that keep Swiss Post competitive and at the same time bring the necessary revenue to the post office,” said the spokeswoman.
USPS recorded a net loss of $ 2.7 billion in 2017 and sales of $ 69.6 billion. The rise in the price of a container is considered a means of solving this problem. Citi believes that Amazon is one of the largest USPS customers in the package delivery industry. The price increase can cost billions of dollars for e-commerce giants. However, Amazon is not the only company that can get many benefits from USPS through the packet selection service. Cost increases are also a success for companies such as FedEx and UPS.