Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
As the world's largest online retailer, Amazon needs somewhere to put all of those products.
The solution? Giant warehouses. Eighty to be exact. Strategically located near key shipping hubs around the world.
The warehouses themselves are massive, with some over 1.2 million square feet in size (111,484 sq. m). And at the heart of this global operation are people (over 65,000 of them), and a logistics system known as chaotic storage.
An interesting topic. From the linked article (which I couldn't read in full because its behind a paywall):
It might be an "insider secret" to most, but the United States Post Office has always provided discounts for anyone willing to presort their deliverable letters and packages. Back in the early 1990's, the company I worked for sent a lot of mail through the local post office, something like ten million pieces a year. The local USPS, in order to lighten their own processing load, cut the company a per-piece discount of about 15% if we presorted the mail via a Zip Code algorithm that the Post Office itself used.
So it's not that there's some sort of collusion between the USPS and Amazon - it's just that Amazon's sheer size and expertise makes it easier for them to take advantage of these discounts.
As for why Amazon gets the discount and the Ebay seller doesn't - the Ebay seller isn't taking his package all the way to the recipient's post office for 'last mile delivery'.
Good for Amazon for using something that legally exists, but not for tax payers who use the law to pay less? Amazon considered savvy and smart but the tax payer is a tax cheat?
Good for Amazon for using something that legally exists, but not for tax payers who use the law to pay less? Amazon considered savvy and smart but the tax payer is a tax cheat?
If you're going to jump into the conversation, please try to read the entire thread chain.
Any entity which ships in volume and which streamlines the processing for the USPS is going to get a discount.
Attempting to twist the thread simply shows that you either can't or won't follow the discussion.
UPS and other private carriers rely on USPS because USPS delivers to rural locations where they don't.
But on the other hand USPS has a monopoly on first class "when it gets there" mail. I've made a living off of delivering coal to rural areas, since only about half of customers would be full truck loads the only way you can do that is by having many customers in the same area. The USPS has 100% of the customers in those areas.
They have 100% of the customers in the US, UPS and Fedex should be unable compete with this especially considering the USPS does not need to make a profit.
I'm surprised people have a problem with the USPS giving a break to Amazon but don't have a problem with USPS giving a break to China, which also has a negative impact on American sellers.
They do save USPS money by doing the sorting themselves, so that's something that should be considered, but I'm sure beyond that they're getting a break because of the sheer volume of business they're giving them.
Without Amazon, who knows where the USPS might be today.
But on the other hand USPS has a monopoly on first class "when it gets there" mail. I've made a living off of delivering coal to rural areas, since only about half of customers would be full truck loads the only way you can do that is by having many customers in the same area. The USPS has 100% of the customers in those areas.
They have 100% of the customers in the US, UPS and Fedex should be unable compete with this especially considering the USPS does not need to make a profit.
Yes, the USPS has a monopoly on first class mail. When FedEx and UPS ship their packages overnight or two-day, then part of the price that you pay gets kicked back from FedEx/UPS to the USPS.
On the other hand, that USPS monopoly on first class mail requires that the USPS delivers to all locations in the US and not just the profitable ones that FedEx and UPS want to service.
Your thread is totally wrong. They aren't subsidizing Jeff Bazos, they are subsidizing Amazon, which is not profitable as a company. This "subsidize" also mostly benefits the purchaser. He is also not soon to be the richest man in the world. Amazon is also starting to deliver their own goods, so looks like this subsidy isn't so great.
I always, always, always buy local when I can even if the price is slightly higher. Only resort to Amazon for things I can't get locally. I currently live in a small coastal NC town that floods with vacationers in season, but few of us are full-time residents. I like the relationship I've developed with the local merchants, in particular my local hardware store. I buy things from them and their staff gives me free repair advice. They know me by sight and name every time I go into the store. I like that. It's a casual friendship thing.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
