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Increase in postal rates?

by Seller_OFwhcBaxkg46g

President just said there will be no bail out of the USPS unless postal rates for packages are quadrupled. That could could kill off a lot of sellers.

Tags: USPS
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Seller_olet7eVOHxQZd
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Seller_yb8VVIaS3iEon
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Yup, just saw that. He said no relief to USPS if the costs for packages shipped by Amazon and other companies aren’t increased by 4 times. Half those packages are shipped for small businesses that he claims to support… that would put most of them out of business.

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Seller_7Lx7qHpKTs3qo
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Seller_TtJRzeKMaTKnm
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Seller_cZmOMN723GBxZ
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We’ll know what happens when it happens. Until then nothing has happened.

It’s always confusing how they say the mail is losing money because less people are sending letters $0.50 each, when internet sales have increased exponentially with each package being minimum of $2.75. Though amazon did negotiate a large deal due to their volume. If they didn’t do the deal with amazon would amazon expand its shipping business? Won’t they anyway? If amazon can find a cheaper way to do something then they will do it. Though not likely they could deliver to everyone for as cheap as usps such as rural areas.

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Seller_OFwhcBaxkg46g
In reply to: Seller_OFwhcBaxkg46g's post

The postal service is profitable however congress made the service pre-fund its pension fund at 5.8 billion dollars a year, something other businesses don’t have to do. Without that they would be showing a $2 billion profit.

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Seller_XNRd1EOajnUmB
In reply to: Seller_OFwhcBaxkg46g's post

PLEASE stop repeating mistruths.

The US Postal Service is actually two separate businesses that run together. The package side which covers its expenses and the mail side which doesn’t.

The main issue is that Congress limits the power of what The PostMaster General and the Postal Board can do. For example, they can’t shut down post offices without approval. That means the tiny offices that see very little volume cost all of us money.

They also were required by Congress to prefund their retirement plan (but Congress didn’t let them change anything to get that extra revenue) which is what has caused the issues they have faced in recent years.

It is a real issue that normal mail (magazines, flyers, letters, etc) is slowing down every single year while costs increase every year. That side of the business is in trouble.

On top of that, Covid-19 has cut volume to the normal mail side dramatically, making the current struggle, a real crisis.

Congress needs to decide to either partially fund the normal mail side with tax dollars so we have quick mail service to every address in the US or they need to let the Postal Leadership run it the way they actually want and explain to people why their isn’t service to AK, HI, PR and other remote areas any longer.

But don’t blame the package side for the issues of the normal mail side.

I think the package side volume deals with Amazon and others likely make a lot of sense BUT, I think they should be changed so those companies can’t make a profit on reselling such services.

So if Amazon pays $2 (random number) for 8 oz First Class Package, that rate should also be passed onto sellers as well. I have no problem with Amazon getting great rates but they should not be able to profit off those great rates.

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Seller_5NHecG0URcRr8
In reply to: Seller_OFwhcBaxkg46g's post

One thing to note. The USPS lost a big chunk of their shipping service when they went to dimensional weight for boxes over 12x12x12. I previously shipped out large boxes every day using USPS but since the more than double price increase, I no longer use USPS for large boxes because UPS is half the price. So USPS cut off their nose to spite their face by increasing prices so much.

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Seller_aQB0JC078mqrc
In reply to: Seller_OFwhcBaxkg46g's post

" President just said there will be no bail out of the USPS unless postal rates for packages are quadrupled." That could could kill off a lot of sellers.

There lies within your problem, President also says we should try injecting household cleaners to kill the Corona Virus…LOLOLOLOL:rofl:

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Seller_syjmYvuDww6Az
In reply to: Seller_OFwhcBaxkg46g's post

I am not sure what is motivating Mr. Trump, but this may provide a clue:

forbes: how-the-usps-epacket-gives-postal-subsidies-to-chinese-e-commerce-merchants-to-ship-to-the-usa-cheap

Moderator Edit (James_Amazon): External URL Removed

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