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Tag: US postal service

  • Trump Blasts Amazon Yet Again, Says eCommerce Giant Uses USPS as Its ‘Delivery Boy’

    Trump Blasts Amazon Yet Again, Says eCommerce Giant Uses USPS as Its ‘Delivery Boy’

    President Donald Trump once again attacked Amazon and the Washington Post in some of his recent tweets.

    In his latest Twitter rant against the company, the President railed that the Washington Post “has gone crazy against me” since Amazon lost their Internet Tax Case in the Supreme Court. He also jibed that the Washington Post is losing a fortune and described it as “nothing more than an expensive lobbyist for Amazon.”

    Trump also blasted Amazon for using the US Postal Service as a “delivery boy” for its packages at only “a fraction of real cost.”

    Trump’s latest tirade came on the heels of a Washington Post’s report that was critical of how he handled North Korea. The paper claimed the president was frustrated with how long it was taking to see some progress after his talk with North Korea’s Kim Jong Un. Trump tweeted the country had not launched a rocket in 9 months and that “all of Asia is happy.” He also said what the “Fake News” is claiming is wrong and said that he was “very happy” with the way things with North Korea were proceeding.

    Amazon’s shares dipped slightly after Trump’s tweets. However, the loss was minuscule when compared to the company’s 55 percent gains since the start of 2018. Trump’s tirade also did little to harm Jeff Bezos’ standing as the world’s richest man. The owner of Amazon and the Washington Post has a net worth amounting to about $150 billion.

    This isn’t the first time that Trump attacked Bezos and Amazon regarding the e-retailer’s use of the USPS. In a tweet last December, Trump questioned why the USPS was charging the online store so little when they “Should be charging MUCH MORE!” He also tweeted in April that the Post Office was losing a fortune but that this will change.

    It is true that the Post Office is losing money. The USPS reported a loss of $2.7 billion in 2017. Increasing the rates of shipping packages is one way to resolve the situation. However, the USPS’ main function is not to generate profit but to serve civilians. This is why the department’s shipping rates are very low.

    Amazon also isn’t the only company using the US Postal Service. FedEx and UPS also drop off packages and utilizes the USPS as their “last mile” delivery. If the postal service does raise prices, it would affect all companies that ships packages, including small businesses that may find it difficult to cover increased shipping costs. 

    [Featured image via YouTube]

  • Postage Increase: Stamps Get Pricier

    Postage Increase: Stamps Get Pricier

    I don’t think anyone thought they’d live to see the day when stamps were practically fifty cents each. The US Postal Service’s regulator approved price increases up to six percent on most mail. This would bring the cost of the stamp from 46 cents to 49 cents. What’s interesting is that the change was not approved permanently. This would make the anticipated revenue boost of $1.8 billion temporary at best. With the industry still feeling the effects of an economic downturn, not all were happy with this decision.

    The Postal Service claims to have lost several billion dollars in revenue due to the recession. The Postal Regulatory Commission did not agree, citing the increase in electronic mail as a legitimate cause for the steady decrease in traditional mail services. As more people communicate online or go “paperless” in terms of receiving and paying for their bills, it stands to reason that there will be less of a need to use the US Postal Service.

    The one cent increase to stamps will likely be permanent while the additional two cents will help make up some of the loss actually blamed on the recession. The price is expected to decrease afterwards.

    Despite the proposed lack of permanence, the increase was negatively viewed by certain large businesses. Mary Berner, president of the Association of Magazine Media trade group in New York, was quoted by the Chicago Tribune as saying, “It will drive more customers away from using the Postal Service and will have ripple effects through our economy – hurting consumers, forcing layoffs, and impacting businesses.” While she doesn’t think that it will immediately drive the industry to an obsolete state, she feels strongly that this ruling, “will hasten it.”

    As for the average person, the impact may actually not be felt all that strongly. As younger generations of Americans rely less and less on traditional “snail” mail and older consumers may mail out in bulk a few times a year, the expenses may not be felt as strongly as it would be if letter-mailing were still the primary method of communication.

    Even so, the day may come where it costs a buck to put a stamp on an envelope. Sounds unreasonable but then, who once upon a time anticipated fifty cent postage?

    Image via USPS Facebook

  • Price Of Postage Stamps Going Up In January

    Just when we were getting used to the $.46 cent price tag for one postage stamp, things are going to change again. The new postage stamp as of January 26th will cost American’s $.49 cents. Imagine, nearly $.50 cents to mail a letter.

    Due to the financial struggles the United States Postal Service (USPS) has endured since the beginning of the economic crisis, many small towns seeing their only post office either shut down entirely, or hours cut back dramatically. This hike is an effort to help them recover from their economic downturn.

    The Postal Service has claimed that its financial problems are due to the lack of interest in paper mail, what many call snail mail. So along came staff reductions — about a quarter of its workforce, or 150,000 postal jobs being eliminated by 2016 and closing post offices as well as ending Saturday mail delivery, a measure currently pending in Congress, but we knew something was amiss.

    “There is red ink — but the overwhelming share has nothing to do with mail volume, the Internet, or other factors related to the mail,” says Fredric Rolando, president of the National Association of Letter Carriers

    Some expert’s claim the financial downfall is due to mismanaged funds and Congress not acting as quickly as required. As well as extensive retirement health payments, a cost that in the first 3 quarters of 2013 was a whopping $9.2 billion dollars.

    “The prefunding of retiree health benefits for future retirees is a major cause of our financial crisis — but not the only cause,” says a USPS spokesman, citing decline in first-class mail as another major cause.

    Usually stamp prices increase $.01 per year, however, supposedly – the higher rate is only going to continue for two years. This will allow the Postal Service to try and make the $2.8 billion dollars they have lost over the past few years. Perhaps this will bring them back to making a profit.

    With a 2-1 vote, the independent Postal Regulatory Commission rejected a request to make the price hike permanent, although considering inflation over the next 24 months it just may make stick. It is too soon to determine.

    The surcharge “will last just long enough to recover the loss,” Commission Chairman Ruth Y. Goldway said.

    Of course, it’s not just the first class stamp that will increase. Stamps.com – the USPS website that sells their mailing essentials online gives you a full overview of what it is going to cost to do business with them in 2014.

    Sounds like they need a major restructuring of funds, and congress needs to step up and get this issue dealt with.

    Image via YouTube

  • Postal Service Proposes End to Door-to-Door Delivery

    The United States Postal Service has gained media attention recently for the suggestion made earlier this year to do away with Saturday service. The postal service has been suffering over the past few years as snail mail has become more and more of a dead medium, causing the USPS to sinking into debt, all while not receiving any federal aid. The legislation put forth and the bills being debated on have the support of the Republican party, and the bill aiming to get rid of Saturday service passed the key house committee, and, despite opposition from the Democratic party, is on its way to the house and, possibly, the senate.

    Saturday delivery isn’t the only thing that is on the docket for change and elimination, however. There is now talk of completely phasing out door-to-door delivery service in favor of curbside service and/or “cluster boxes.” This plan of action has been introduced by Congressman Darrell Issa, and is supported by the Postmaster General’s office. Patrick Donahue of the office claims that door-to-door deliveries cost about $353 per household annually, while curbside delivery would cost about $224, and cluster boxes would run a small total of $160.

    Congressman Issa is pushing the legislature by attempting to portray it not only as cheaper for the postal service, but ultimately better for constituents. In his statement, Issa was quoted as saying, “A balanced approach to saving the Postal Service means allowing USPS to adapt to America’s changing use of mail. Done right, these reforms can improve the customer experience through a more efficient Postal Service.”

    The National Letter Carriers Association is not in favor of these changes, out of fear that they could hurt and/or cut jobs and, in this economy and state of job security, their worries are not unfounded. Yet, the economy is also seemingly to blame for the proposed changes, as well, considering that the postal service lost nearly $16 million last year, alone. It’s a precarious state of affairs, to say the least.