Amazon.com and the U.S. Postal Service have reached a new package-handling agreement, according to people familiar with the matter, after Amazon threatened to drastically cut back on the number of packages it sends through the struggling agency.
Instead of reducing the number of packages Amazon ships through the Postal Service by two-thirds by this fall, as outlined in an earlier proposal, the two sides now have a tentative deal that will result in a 20% reduction, the people said.
The Postal Regulatory Commission, the federal agency that oversees the Postal Service, must now review and approve the agreement.
The new tentative deal would still have the Postal Service deliver more than 1 billion packages for Amazon a year. The loss of revenue from the 20% cut, however, could hurt the Postal Service. It has grown to rely on the billions of dollars it makes from Amazon’s guaranteed volumes.
UPS kicked Amazon to the curb because of insufficient profit margins. It remains to be seen if the USPS is going to get a good return. Hopefully, Amazon is going to pay more than they have in the past. Steiner may have caved, though, seeing as how the USPS is addicted to the revenue.
Garbage Boy had no choice. I heard behind doors Congress told him NOT to cut a day of delivery!!!!
He could have cut all the salaried dead weight???
But, who wants to cut people that do nothing anyway!!!!
On average the USPS makes less than a dollar per Amazon package and must rely on volume which stretches the network and personnel. USPS needs to quit wasting money on poorly planned projects they abandon mid cycle and there is far too much middle management as well. There are a lot of areas where they can save such as paper usage in the plants and unneeded overtime for mail handlers.
How about the fact that every office has a Post Master!
I haven’t seen my PM in 2 weeks. Yet, they keep paying her.
Or, maybe the fact that I live within 10 miles of 11 Post Offices??
They recently did an audit. 3 of those offices make under 200 dollars a week???