Amazon pared gains after Trump’s latest twitter update, for which there is no evidence that this president is correct
President Donald Trump continuing his campaign against Amazon.com Inc. on Tuesday, yet again claiming the company is pricing tax payers billions of dollars through the special deal with the You.S. Postal Service.
Amazon pared gets Tuesday after Trump’s newest tweet. The stock fell more than 5 per cent Tuesday after Trump and a Republican senator took target the Seattle-based company.
“I am perfect about Amazon costing the nation Post Office massive amounts of cash for being their Delivery Kid,” Trump said on Twitter. “Amazon online should pay these charges (plus) and not have them bourne by the American Taxpayer. Many huge amounts of dollars. P.O. market leaders don’t have a clue (or perhaps do they?)!”
There’s no evidence that the president is correct. Though its contract with Amazon online marketplace is confidential, the Mail Service has argued that its e-commerce services benefit the organization as well as its mail customers. It is legitimately prohibited from charging shippers fewer than its delivery costs.
Trump continues to be unrelenting in his criticism with Amazon in the past several days, about subjects from the Postal Plan to taxes and retailing. From a pair of Twitter messages Thursday, Trump said Amazon “must pay serious costs (and taxes) today!”
Amazon regularly uses the USPS to complete what’s called the “last mile” of delivery, with notification carriers dropping off packages at some 150 thousand thousand residences and businesses every day. It has a network of more than 21 “sort centres” where customer offers are sorted by local, stacked on pallets and brought to post offices for the previous leg of delivery.
David Vernon, an analyst at Bernstein Research that tracks the shipping business, estimated inthat the USPS dealt with 40 per cent of Amazon’azines volume the previous year. He estimated at the time that Amazon pays the postal service US$2 for each package, which is about half just what it would pay publicly traded United Parcel Service Inc. and FedEx Corp.