On April 5, 2018, we wrote an article about Amazon and how they were taking advantage of taxpayers by paying the US Postal delivery fees that are below their cost of doing business. Analysts at Citigroup estimate that the USPS loses $1.47 for every package they deliver for Amazon. Since the US Post System loses money every year, it seems that taxpayers (not other customers) are on the hook for these losses. Therefore, one can conclude that the US Tax Payer is subsidizing Amazon's online business.
We all like to complain about the US Postal Service, but we think they do a pretty good job. The deliver billions of letters, fliers, and parcels and they their loss rate is very close to zero. While it may not be the case for everyone, the post offices we use usually has short lines and wait times. So it appears on the surface they run a pretty efficient operation.
