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Old 02-22-2019, 03:25 AM
bUU
 
Location: Georgia
11,882 posts, read 8,565,264 times
Reputation: 8335

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Quote:
Originally Posted by MinivanDriver View Post
Actually, sometimes they do. We get random Amazon purchases delivered by the mailman. Or, in our case, the mailwoman.
Just to be clear, what folks are talking about is the recent changes whereby Amazon is replacing a portion of their local delivery, using their own people and their own delivery vans instead of using USPS. I see the Amazon delivery van on our block at least once a day when I'm working at home.

Quote:
Originally Posted by MinivanDriver View Post
I still can't believe the politicians in NYC went back on the deal. As Bugs Bunny used to say, "What a maroon."
I wouldn't be so sure. Unlike the vast majority of cities that bid for HQ2, New York doesn't need Amazon. The tens of thousands of jobs would be lost in the noise of variability of a labor market as big as New York's. What's worse, the bid bypassed the normal processes in a way that resembles what would happen when a bunch of rich real estate tycoons grease the wheels for their own benefit. Some people think, "Every little bit helps," but that's nonsense. Sometimes, "little bits" further erode the ability of the city to take care of its people the next time, and the time after that. And New York has seen that happen, time after time, as deals that seemed like they should be of great benefit to the city end up delivering nothing, because of how "sweet" the deal was to its developers. As with anything intended for the public good, those focused on personal gain will eventually learn how to exploit loopholes. It's pretty clear that that's what happened this time, so when all is said and done, scuttling the deal is probably only going to significantly harm those who speculated on the benefits they would get from that exploitation.
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Old 02-22-2019, 03:58 AM
 
Location: Pennsylvania
12,009 posts, read 4,036,288 times
Reputation: 9353
I think it's time for the Trump administration to put Amazon under the microscope. They are getting too powerful.
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Old 02-22-2019, 07:30 AM
 
3,766 posts, read 2,660,721 times
Reputation: 6903
Quote:
Originally Posted by bUU View Post
Just to be clear, what folks are talking about is the recent changes whereby Amazon is replacing a portion of their local delivery, using their own people and their own delivery vans instead of using USPS. I see the Amazon delivery van on our block at least once a day when I'm working at home.
No, I think we're talking about all the delivery services they use. We probably get 5-6 Amazon deliveries a day at home/work, all free shipping, from UPS, USPS and their vans. Most come from UPS.

So we are definitely taking advantage of the free shipping, but think about it. Let's say the real cost is $8 a box, which would be very inexpensive for what we're receiving, times 25 packages a week is $200.

I just don't think this is sustainable.
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Old 02-22-2019, 07:45 AM
 
3,270 posts, read 1,967,800 times
Reputation: 2552
Quote:
Originally Posted by KaraG View Post
No, I think we're talking about all the delivery services they use. We probably get 5-6 Amazon deliveries a day at home/work, all free shipping, from UPS, USPS and their vans. Most come from UPS.

So we are definitely taking advantage of the free shipping, but think about it. Let's say the real cost is $8 a box, which would be very inexpensive for what we're receiving, times 25 packages a week is $200.

I just don't think this is sustainable.
It is actually very sustainable. You have to look at the whole entity and not just select parts. AWS earns them a crap ton of $.
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Old 02-22-2019, 07:57 AM
 
Location: Raleigh
8,001 posts, read 5,950,317 times
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Quote:
Originally Posted by KaraG View Post
I disagree that the other players are terrible at logistics. Amazon is using them too.

I'm just wondering how long Amazon's free shipping model/free 2 day with Prime membership will last. It doesn't make financial sense. It costs real money to ship things. Where is that money coming from?

That delivery driver that drove out to the country to my daughter's farm last Sunday night at 8:30 pm to deliver a $10 book for free? How is Amazon paying for this?
Your daughter paid $60 to join and $120 to renew. Costco doesn't make a profit on that Rotisserie chicken it sells you either.
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Old 02-22-2019, 08:06 AM
 
Location: Raleigh
8,001 posts, read 5,950,317 times
Reputation: 11104
Quote:
Originally Posted by KaraG View Post
No, I think we're talking about all the delivery services they use. We probably get 5-6 Amazon deliveries a day at home/work, all free shipping, from UPS, USPS and their vans. Most come from UPS.

So we are definitely taking advantage of the free shipping, but think about it. Let's say the real cost is $8 a box, which would be very inexpensive for what we're receiving, times 25 packages a week is $200.

I just don't think this is sustainable.
I used to work with a lab that brought in all its deliveries overnight via Fedex and UPS, overnight. There was a term we used, "Shipping Density." So, it a client sent in one specimen, it cost the lab $7 per specimen. If they sent two, $3.50, three $2.34, six would cost $1.17/specimen. I have to imagine that if you get 25 packages, at 5 a day, Package three, four and five are incrementally cheaper. So,if your billing a $15 item that would cost $8 to ship individually, Shipping two $15 Items doesn't cost $16 to ship.
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Old 02-22-2019, 01:58 PM
 
5,223 posts, read 2,160,799 times
Reputation: 15839
Quote:
Originally Posted by bUU View Post
I wouldn't be so sure. Unlike the vast majority of cities that bid for HQ2, New York doesn't need Amazon. The tens of thousands of jobs would be lost in the noise of variability of a labor market as big as New York's. What's worse, the bid bypassed the normal processes in a way that resembles what would happen when a bunch of rich real estate tycoons grease the wheels for their own benefit. Some people think, "Every little bit helps," but that's nonsense. Sometimes, "little bits" further erode the ability of the city to take care of its people the next time, and the time after that. And New York has seen that happen, time after time, as deals that seemed like they should be of great benefit to the city end up delivering nothing, because of how "sweet" the deal was to its developers. As with anything intended for the public good, those focused on personal gain will eventually learn how to exploit loopholes. It's pretty clear that that's what happened this time, so when all is said and done, scuttling the deal is probably only going to significantly harm those who speculated on the benefits they would get from that exploitation.

Actually, they gave up a great deal. I don't care who you are, 25,000 jobs and easily more than $100 billion in economic impact is a bargain for $3 billion in tax breaks. What's more, given how New York has had 1,000,000 migrate from the state since 2010, resulting in a loss of roughly $45 billion from the state economy, it's the very epitome of short-sightedness.
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Old 02-23-2019, 03:31 AM
bUU
 
Location: Georgia
11,882 posts, read 8,565,264 times
Reputation: 8335
Quote:
Originally Posted by KaraG View Post
I just don't think this is sustainable.
Which is (as I indicated) why they're changing the mix.

Quote:
Originally Posted by MinivanDriver View Post
Actually, they gave up a great deal.
I wouldn't be so sure. Unlike the vast majority of cities that bid for HQ2, New York doesn't need Amazon. The tens of thousands of jobs would be lost in the noise of variability of a labor market as big as New York's. Deals biased so much toward the employer erode the ability of the city to take care of its people the next time, and the time after that.
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Old 02-23-2019, 07:25 AM
 
3,766 posts, read 2,660,721 times
Reputation: 6903
Quote:
Originally Posted by JONOV View Post
I used to work with a lab that brought in all its deliveries overnight via Fedex and UPS, overnight. There was a term we used, "Shipping Density." So, it a client sent in one specimen, it cost the lab $7 per specimen. If they sent two, $3.50, three $2.34, six would cost $1.17/specimen. I have to imagine that if you get 25 packages, at 5 a day, Package three, four and five are incrementally cheaper. So,if your billing a $15 item that would cost $8 to ship individually, Shipping two $15 Items doesn't cost $16 to ship.
Yes, I understand shipping density if they are coming from the same location, but our Amazon packages are coming from all over and being delivered one at a time throughout the day by different carriers. We are taking full advantage of this, but it has become a bit of a joke.

On the other hand, we also receive and ship several shipments a day for our business, most are heavy boxes shipped via UPS because it would be too expensive to ship via the post office. Even with our commercial discounts, shipping isn't cheap.

I'd be interested to hear from Amazon sellers that have their items set up with the free shipping or Prime and see what charges they pay now, shipping in to Amazon locations, storage, selling fees, shipping out, etc.
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Old 02-23-2019, 10:00 AM
 
7,784 posts, read 7,160,377 times
Reputation: 6096
It's possible that there was a second distributor in Chattanooga, TN closer to an Amazon logistics hub in Smyrna. The two cities are connected by I-24. I see it all the time with a discount medical supply company in Texas and California. They contact another distributor in Virginia or Pennsylvania, such as McKesson, and arrange the delivery via UPS. If you tear off the Amazon tape, you might find the original label underneath.
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