Newly released documents show Amazon is a $3.9 billion-per-year customer the Post Office can’t afford to lose
- Newly released documents obtained by American Oversight show that Amazon produced nearly $3.9 billion in revenue and $1.6 billion in profit for the USPS in the fiscal year of 2019.
- USPS delivered 1.54 billion packages for Amazon during that time, or roughly 30% of the technology company’s total volume.
- While President Donald Trump has been critical about USPS doing business with Amazon, the numbers make it clear that the retail giant is generating much-needed profit for the Post Office.
Simply put, in return for the lower rates, the USPS keeps a large customer, and staves off a possible future in which Amazon builds out its own delivery fleet, including drone deliveries for rual areas, to the extent it doesn’t need the USPS’s delivery network — or even begins competing with USPS to deliver some non-Amazon packages as well.
But as the newly released numbers reveal, the USPS isn’t in a position right now to increase its rates and risk losing Amazon. It’s hurting like many other businesses amid the pandemic, and it can’t afford to lose a customer that generated $1.6 billion in much-needed profit last year.