Amazon makes huge profits off of shipping rates to us
Well, well, well President Trump’s concern that Amazon is being given a rate below cost to deliver packages to us has uncovered a huge profit scheme by Amazon.
Forget about the concern that President Trump has with Amazon and focus on what has been uncovered by the Presidents’ statements. That is that Amazon is paying the United States Postal Service $1.46 less than cost per package.
The report said the average cost of parcel shipments might jump from $3.51 to $4.97 if the USPS appropriately priced the service. It also said that since the Postal Service pricing provides strong downward pressure on competitors UPS and FedEx, those companies also probably would increase prices. Amazon defended its program in July after Josh Sandbulte, a hedge fund manager with a stake in FedEx, wrote a Wall Street Journal op-ed asserting that the Postal Service effectively subsidizes Amazon, losing an average of $1.46 for each shipment it delivers.
Many in the media and punditry class are concerned about what President Trump said and their effects on Amazon. Not me, I am more concerned about what Amazon is charged by the USPS and what they charge us for shipping.
From Amazon’s own website the state they charge the following for same day shipping:
| Order Type | Same-Day Delivery Price |
| Prime customers - Eligible orders over $35* | FREE |
| Prime customers - Orders under $35** | $5.99 per order |
| Non-Prime customers** | $8.99 per order plus $0.99 per item |
What that means to me is Amazon is charged $3.51 cents to deliver a package, via the USPS, that you and I are charged by Amazon $8.99 per order plus $0.99 per item, if we are not Prime members.
That means they make a minimum of $6.41 off of each purchase we make just on the delivery charges, if delivered by the USPS.
That is a 182% profit, is that not what the Democratic Party believes is excess profits? They should be heralding President Trump for exposing this, so why are they upset with him.
The following is also from Amazon's website and they state that their shipping rates are as follows:
Domestic
| Domestic Standard* | Domestic Expedited* | Domestic Two-Day | Domestic One-Day | |
|---|---|---|---|---|
| (4 - 14 business days**) | (2 - 6 business days**) | (2 business days) | (1 business day) | |
| Books | $3.99 | $6.99 | $14.95 | $19.99 |
| CDs, Cassettes, Vinyl | $3.99 | $6.19 | $14.95 | $19.99 |
| VHS Videotapes | $3.99 | $6.19 | $14.95 | $19.99 |
| DVDs and Blu-ray | $3.99 | $6.19 | $14.95 | $19.99 |
| Video Games | $3.99 | $6.99 | Not available | Not available |
| Software & Computer Games | $3.99 | $6.99 | Not available | Not available |
| Camera & Photo | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Tools & Hardware | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Kitchen & Housewares | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Computer | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Outdoor Living | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Electronics | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Sports & Outdoors | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Cell Phones & Service | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Musical Instruments | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Office Products | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Toy & Baby | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. | Not available | Not available |
| Independent Design items | FREE | $6.49 + $0.99/lb. | Not available | Not available |
| Everything Else | $4.49 + $0.50/lb. | $6.49 + $0.99/lb. |
You can calculate via the rates above how much Amazon is profiting from what they are charged by the USPS and what they charge you.
Or as Amazon would probably say that is their cost for handling, OK we believe you Amazon.
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