Tuesday, April 3, 2018

Amazon and the USPS

Trying to figure out just how Amazon and the USPS work together is like trying to understand the details of the old KGB, or worse. As best as I can ascertain:

1. Amazon, if it is something they allege to deal with, has a warehouse with the product at location A.

2. Amazon then packages the product P at A and sends it out on some third party transport it transports V1 to a regional location say B. Here in New Jersey B is I believe in Avenel.

3. Then Amazon with transport V2 sends the package P from B to a local post office, LPOn.

4. At LPOn the USPS accepts the package, sorts it to a deliverer, gets it on a truck, and out it goes.

Thus all the USPS does it to add to a delivery unit, USPSDUk, another set of packages which are tracked.

Now how much does it cost the USPS and how much do they get? Good question. Try and do cost accounting on the USPS! Also here we have a marginal cost most likely and not the average costs.

I would love to see someone try this analysis, and to make any definitive statement I would say it is kind of dumb. The marginal costs is close to zero!Think about it.