The President of the United States, Donald Trump, has continued his attack on Amazon and how he believes it isn’t paying the United States Postal Services (USPS) a fair price for using its services. Increasingly it looks like POTUS will be looking at reform and raising prices. President Trump has made another declaration on Twitter:
Only fools, or worse, are saying that our money losing Post Office makes money with Amazon. THEY LOSE A FORTUNE, and this will be changed. Also, our fully tax paying retailers are closing stores all over the country…not a level playing field!
— Donald J. Trump (@realDonaldTrump) April 2, 2018
It is not surprising that USPS is losing money, national postal services have expenses and responsibilities that can prove to be onerous. But it is not clear that President Trump is entirely right. The problems of the High Street (Main Street in the USA) are not universally down to Amazon and other online retailers. And it is not entirely clear either way whether Amazon is getting an unfair advantage from USPS.
If USPS needs to renegotiate its relationship with Amazon then that seems like a desirable course of action and it is doubtless clear that a review of pricing is also a good idea for future profitability. Rather like with the Royal Mail in the UK, established postal services should be reviewing their positions in the brave new world of Amazon and ecommerce.
But perhaps President Trump should be careful what he wishes for. It seems to Tamebay that the prevailing trends mean Amazon will be organising its deliveries with increased autonomy and will likely be working to ditch USPS and other suppliers. A partnership with USPS and Amazon will most likely remain a good option, and a vital income scheme, but generic alienation and criticism of Amazon, seems like an unwise approach.