Trump panel proposes postal reforms that might raise Amazon shipping expenses

Trump panel proposes postal reforms that could raise Amazon shipping costs

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The United States Postal Service ought to have the versatility to raise shipping rates for specific bundles, according to sweeping reforms advised by a Trump administration job force. Those modifications would increase expenses for Amazon and other web merchants.

President Donald Trump purchased an examination of the United States Postal Service’s financial resources in April, after weeks of implicating Amazon of not paying its reasonable share of postage. The Postal Service reported a loss of $3.9 billion for its 2018 , which endedSept 30– the 12 th straight year the service has actually reported a monetary loss.

Trump has actually consistently implicated Amazon of making the most of its shipment collaboration with the United States Postal Service, with taxpayers carrying the expenses. Earlier this year, in comments to the press, Trump stated, “Amazon is going to have to pay much more money to the post office. There’s no doubt about that.”

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The task force blamed the decline in revenue on the rising popularity of digital alternatives to traditional letters and bills delivered by the Postal Service.

 “Although the USPS does have pricing flexibility within its package delivery segment, packages have not been priced with profitability in mind. The USPS should have the authority to charge market-based prices for both mail and package items that are not deemed ‘essential services,'” the task force said in its report (PDF).

The task force also recommended the Postal Service pursue cost-cutting strategies to address rising labor and operating costs, and have greater flexibility in determining delivery frequency. It also suggested restructuring $43 billion in prefunding payments that the Postal Service didn’t make to the Postal Service Retiree Health Benefits Fund.

The US postmaster general said the Postal Service is reviewing the task force’s recommendations.

“The recommendations contained in the report should be evaluated together with legislative and regulatory reforms to address our urgent financial challenges,” US Postmaster General Megan J. Brennan said in a statement. “Reforms are necessary to enable the Postal Service to further reduce costs, grow revenue, compete more effectively, function with greater flexibility to adapt to a dynamic marketplace and to prudently invest in our future.”

Amazon is one of the USPS’ biggest single customers, prompting the agency to offer specialized services. But Amazon and its CEO, Jeff Bezos, have been frequent targets of Trump’s attacks, with the president widely seen as targeting the company because Bezos owns The Washington Post, which has reported critically on the president.

Amazon representatives didn’t immediately respond to a request for comment.

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