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Clesring the air on Amazon
Posted by MikeC/TX of TX on 4/4/18 6:17pm Msg #71613
Trump is ranting about how Amazon is using USPS as its delivery boy and costing the taxpayers money because it is shipping packages below cost, and is also not paying taxes.

None of that is true. Package delivery is one of the bright spots for USPS - last year, it brought in $19 Billion, an increase of more than $2 Billion from 2016. $7 Billion of that came from bulk shippers like Amazon (not clear how much of that revenue Amazon generated).

USPS is NOT losing money on package shipments - it cannot, by law. Trump cited a study that found that each shipment is about $1.46 below market rate, but below market rate is competitive and not the same thing as below cost. Amazon may have negotiated better prices for itself based on bulk shipping, but those prices still have to be above cost. As a spokesperson for the National Association of Letter Carriers pointed out, USPS is the only delivery service that visits every home, every day, so the incremental cost to deliver a package along with your regular mail is not really that high. Amazon has also done a lot of work to make their package labeling meet the USPS requirements, making it easier for USPS to process the packages.

Amazon IS paying taxes - not only corporate income tax but also by collecting and remitting sales taxes on products they sell directly in all 45 states that have a sales tax. They do not collect sales tax on third-party vendor sales, but that may change soon.

And here's a couple of fun facts for you - not only does the Trump Organization sell a lot of product on Amazon and has not pulled a single item from Amazon, but:

1) The Trump Store website ONLY offers USPS Priority Mail as a shipping option and does not appear to collect sales tax; and

2) Ivanka Trump's website offers Amazon Pay as a payment option.
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 Clesring the air on Amazon - MikeC/TX on 4/4/18 6:17pm



 
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