According to Citigroup’s analysis, if these costs were fairly redistributed and allocated, the average parcel would cost around $1.46 more to deliver. Amazon has used a method called “postal injection” to save money on their own deliveries, delivering pre-sorted Amazon packages to local post office delivery depots for “last mile” deliveries to be made by the USPS at a greatly discounted price. With Amazon warehouses located near many USPS depots, Amazon has managed to outsource almost two-thirds of their deliveries to the United States Postal Service.
So is President Trump right in saying that the USPS should be charing Amazon much more? Based on the current figures relating to the number of packages the USPS delivers for Amazon, the price they charge for delivery, and the Postal Service’s current financial state, the answer is clearly yes.