Amazon us mail subsidies

Amazon has been a significant beneficiary of subsidies from the United States Postal Service (USPS) for its delivery services. Here are some key facts about Amazon's use of USPS subsidies:

  1. Package delivery contracts: Amazon has contracts with USPS to deliver packages to customers. In 2019, Amazon accounted for about 40% of USPS's package delivery revenue.
  2. Subsidies: USPS provides Amazon with significant subsidies to help offset the costs of delivering packages. In 2020, USPS reported that it lost $8.1 billion, with a significant portion of those losses attributed to its package delivery contracts with Amazon.
  3. Cost-sharing agreements: Amazon and USPS have cost-sharing agreements that require Amazon to pay a portion of the costs associated with delivering packages. However, these agreements are often criticized for being opaque and not fully transparent about the costs and subsidies involved.
  4. Discounted rates: USPS provides Amazon with discounted rates for package delivery, which can be significantly lower than the rates charged to other customers. In 2020, USPS reported that it charged Amazon an average rate of $2.45 per package, compared to an average rate of $4.45 per package for other customers.
  5. Taxpayer-funded subsidies: While Amazon pays some costs associated with package delivery, the company also benefits from taxpayer-funded subsidies provided to USPS. USPS is a self-funded agency, but it relies on taxpayer funding to cover its operating losses.
  6. Regulatory challenges: Amazon's use of USPS subsidies has faced regulatory challenges in the past. In 2019, the USPS Office of Inspector General (OIG) released a report criticizing the agency's cost-sharing agreements with Amazon, citing concerns about transparency and fairness.
  7. Amazon's response: Amazon has defended its use of USPS subsidies, arguing that they help to keep prices low for customers and support the growth of e-commerce. The company has also invested in its own logistics and delivery infrastructure, which has reduced its reliance on USPS for some deliveries.

In summary, Amazon's use of USPS subsidies is a complex issue that involves cost-sharing agreements, discounted rates, and taxpayer-funded support. While Amazon benefits from these subsidies, they have also faced regulatory challenges and criticism from some quarters.