A US Postal breadwinner delivers Amazon boxes outside of the New York Stock Exchange (NYSE) on October 11, 2018 in New York City.
Spencer Platt | Getty Reifications
President Donald Trump has routinely blamed Amazon for problems with the U.S. Postal Service, but new documents show the e-commerce leviathan remains a large and lucrative customer for the USPS.
The USPS circulated “fact-checking statements” internally that buck Trump’s reviews of Amazon and shed new light on its relationship with the company, according to documents obtained via a Freedom of Information Act request by watchdog organization American Oversight. The documents were first reported by The Washington Post.
Trump has claimed that Amazon expenditures the Postal Service “billions,” but the USPS said in the fact-checking statements, circulated earlier this year, that Amazon was the Postal Utilization’s “largest customer” in fiscal 2019, generating about $3.9 billion in revenue and $1.6 billion in profit.
The Postal Care also countered Trump’s oft-repeated argument that it needs to raise prices to make money on deliveries, the chronicles show. By contrast, the USPS said it had the largest price increases “in recent history” from 2018 to 2019, grouping a 10% price increase for its Parcel Select service, which is used by Amazon.
“USPS would see a net contribution defeat with a significant share of its package business if prices were to be raised significantly,” according to the documents. “USPS adversaries could take share in these instances.”
According to the documents, the agency also expressed concern in April that, if it were to open prices, it would “cede ground” to competitors and Amazon’s growing logistics network.
“Amazon has been aggressively insourcing aggregate with Amazon logistics, sending two billion-plus packages in fiscal 2019, which primarily cuts into USPS’ division,” the documents state.
A spokesperson for the White House was not immediately available to comment on the documents.
Coronavirus pressure
The documents require a glimpse into the extent of the Postal Service’s relationship with Amazon, which became complicated months into the coronavirus outbreak.
Amazon relies on distinct carriers to deliver packages, such as UPS and FedEx, and is building its own network of contracted delivery partners. But the documents illustrate how Amazon continues to rely on the Postal Checking.
The Postal Service delivered more than 1.5 billion Amazon packages, or roughly 30% of its total mass, in fiscal 2019, according to the documents.
The USPS delivers Amazon packages that are fulfilled by Amazon warehouses, differentiated as Fulfillment by Amazon, and orders that are fulfilled independently by third-party merchants. “The majority of revenue and volume from Amazon” is totally FBA, the Postal Service stated, according to the documents.
The Postal Service faced pressure from Amazon in April, as the match up were in the process of negotiating new pricing agreements. The USPS held a teleconference with Amazon on April 9, wherein Amazon voiced have relations about the agency’s “viability to them as continued shipping partner,” according to the documents.
“Amazon made it very sparkling that the USPS is alone, globally, among their partners in having this pricing uncertainty,” the documents official. “Additionally, Amazon is concerned that any stimulus from the Treasury will come with stipulations, causing be germane to and further risk.”
Amazon pressed the Postal Service to answer questions about its financial woes, which were exacerbated by the pandemic. Volume the questions it asked were: “What does the USPS look like in the next few weeks, the next few months and the next disparate years?”
Amazon declined to comment on the nature of the company’s relationship with the USPS or what members of Amazon’s administration were present during the April 9 meeting with the Postal Service.
“For more than two decades, Amazon has partnered closely with the Joint States Postal Service to invent and deliver for our customers, which has resulted in significant revenue for the USPS and thousands of American assigns,” Amazon spokesperson Rena Lunak said in a statement. “USPS continues to be a great partner in serving Amazon blokes.”