The Ecommerce giant Amazon generated $1.6 billion for the USPS services in 2019 as per the latest reports. The new bombshell report in The Washington Post has mentioned details about the ongoing dispute between the Trump administration and the US Postal Service, and this report also provides complete insight into just how profitable Amazon’s business is for the organization.
The documents obtained by watchdog group American Oversight has completely mentioned that the Seattle, Washington based Amazon generated $1.6 billion in profit for the USPS and $3.9 billion in the economic year 2019. The postal services of the company have gained more than 1.54 billion packages for the leading e-commerce giant. This huge number represents 30% of Amazon’s total volume previous year, and the revenue has greater than before this year.
Without mentioning evidence President Trump has complained for the past two years that the USPS loses about “$1.50 on regular for each delivery package” the postal services are delivering for Amazon. For this, the president tweeted back in 2018 that Seattle, Washington ecommerce giant Amazon was using the USPS as its “Delivery Boy,” and is paying little in taxes. He allegedly pressured then-Postmaster General Megan Brennan that it is time to double the charge for Amazon and other companies for the USPS services.
In August the US president mentioned that he was intentionally underfunding the USPS to save the put up workplace. He as well protested the coronavirus funding of $10 billion the USPS obtained in July,
The huge amount generated by USPS in 2019 will certainly add some change in the process as the postal services have undergone a loss.
The new reporting doesn’t come into sight to help both arguments, even without the big portion of enterprise Amazon gave the USPS the last 12 months, the company, however, wouldn’t have been competent in turn over income due to its enterprise model. The postal service’s USPS lost approximately $8.8 billion in the economic year 2019, more than two times its loss from 2018. The loss in the business that the company has experienced is mostly responsible for a 2006 condition from Congress. In 2019, those payments consisted of a $320 M increase in withdrawal compensation expenditures.
The fresh reporting does not emerge to hold up either argument, however; even without the considerable part of enterprise Amazon provided the USPS in 2015, the company still would not have the aptitude to turn a revenue thanks to its business plan.