The United States Postal Service is a large contributor to the flow of online selling for both small and large businesses and industries. With the recent issue on the USPS funding cut, the disruption in the service’s normal operations is affecting many of these businesses.
Online commerce companies such as Amazon and eBay are exerting efforts in requesting lawmakers to keep the service running at a reasonable cost.
Donald Trump pushes on with a solution that he thinks could keep the USPS afloat. He suggested that online retailers should be charged more for every parcel. A bill was proposed in the House to grant $25 billion to the USPS to fulfill the financial need that comes along with the demand to transport mail-in ballots for election day. The president has expressed his utmost disapproval on this last week Thursday, August 13.
"I have a much better idea for the post office ... you raise the price-per-package by a number that it should be so instead of Amazon and these companies making a fortune ... Amazon will pay for the cost of the post office,"
- President Donald Trump
It is still unknown as to whether the president’s idea will be taken as an actual proposal. However, even if it was, it would still require approval from Congress. Officials of the White House gave no response as well.
The incumbent president stated that he wanted Amazon and other online sellers to be charged 2 to 3 dollars a package. Trump also threw accusations at Amazon about putting up large distribution facilities around the post office and “dumping” the packages on to the post office.
As problems with the country’s postal service continue, businesses will be taking a serious hit on their deliveries. Financial problems worsened for the service during the third quarter fiscal 2020 as the quarantines, lockdowns, restrictions, and other protocols imposed affected the logistics, manpower, and sales of the postal service.
Things are not looking so good either as the president dumps the proposal for additional funding for the USPS because of his refusal to support mail-in voting.
Amazon and USPS have a mutual benefit from each other, as the former is a large contributor to the volume of packages shipped and growth in revenue as well. The Jeff Bezos company has many courier partners but the USPS remains to be a primary partner because of its reliability and affordability. An estimated 40% of Amazon’s total orders are handled by the national postal service.
Concerns are running wildly not just about the disruption in operations but also the looming threat of an increase in the shipping prices of USPS. Trump continues to urge the service to raise their prices, by which the service had no other choice but to push through temporarily until December 27. UPS and FedEx also declared the same action.
An alliance of several businesses and companies, called the Package Coalition, was formed to campaign against the price hike and express concerns to the government for the preservation of the USPS pricing.