BREAKING: Amazon Launches Hostile Takeover of USPS
It’s probably no secret to many of you that Amazon’s use of the U.S. Postal Service (USPS) to deliver its products likely saved the failing government agency from collapse.
According to a report by the New York Times, parcel and package shipping is the USPS’s one growth area. And it’s been what’s kept the company afloat as other segments lose billions a year.
But according to analysis by Citigroup, the U.S. Postal Service is charging the retail giant below-average rates for the packages it delivers. In fact, the USPS would have to raise rates by about 50% just to break even on its costs.
And while that may sound like a good thing — for people shipping products sold through Amazon, at least — it’s actually the latest way Jeff Bezos is enforcing his growing monopoly...
$111 Billion Isn’t Rich Enough
As you already know from other articles I’ve written about Amazon and its shady policies, about three-quarters (75%) of the products available for purchase on Amazon are sold by third parties.
These are small mom-and-pop stores that make the majority of their revenue from selling online through Amazon’s platform. And they’re able to make a healthy living from it.
But that just doesn’t sit well with Jeff Bezos. He doesn’t want to see anyone getting rich off his creation but him. And apparently being the richest person in the world with over $111 billion to his name isn’t enough.
So he’s been enacting policies for the past few years to squeeze every penny he can out of the small businesses using Amazon.
He ended the Amazon wholesaling program that thousands of small sellers depended on for their livelihoods earlier this year. Now they’re forced to retain warehouse space to carry their own inventories, and their products are showing up far below those fulfilled by Amazon in search results.
Some small sellers estimate they’ll lose about 50% of their business this year thanks to Jeff’s power grab.
And now, with the high-volume delivery season upon us, Amazon is making another move to squeeze profits from its sellers and bulk up its own bank accounts at the same time.
You Can’t Sit Ship Here
In a bold move, Amazon is, in effect, committing to a hostile takeover of the USPS. That may sound crazy, but Bezos’ company is already its biggest customer. And it’s already getting discounted shipping rates well below the average rate — perhaps even below the actual cost of shipping.
But now Bezos is taking that one step further and imposing an outright ban on anyone but him using the USPS this shipping season.
Believe it or not, that’s really what’s going on. Amazon just came out with an announcement that its sellers were banned from using the USPS’ one- to three-day Priority Mail shipping options — the most common for Prime deliveries — unless the sellers buy the postage directly from Amazon.
You read that correctly. Even if the sellers buy postage directly from the post office, Amazon won’t let them send the package.
You already know Amazon is getting a screaming good deal on the price it pays the USPS for shipping packages. But you might not know that many high-volume third-party sellers also have deals set up with shipping companies.
Some have contracts where they buy postage through an online application that matches them with the best and lowest-cost option. Some have contracts with individual shipping companies for discounted rates. And others even have deals in place with the USPS itself.
But they’re going to have to forfeit all the hard work that went into building those deals. And they’re going to have to pay as much as 12% more for each product they ship if they want to use the USPS this holiday season.
And Amazon will get even richer off its dysfunctional relationship with the U.S. Postal Service. That’s because Amazon is profiting from what we call “the spread” in finance.
Spread it on Thick
The spread is just the difference between two prices. It can be the difference between the bid and the ask on a stock trade or the difference between what banks pay to borrow money and what they charge to lend it out.
But in this case, it’s the difference between the ridiculously low prices Amazon pays the USPS and the ridiculously high prices Amazon charges its sellers for shipping.
And with third-party sellers making up nearly 75% of the more than 1 billion gifts expected to be shipped between now and the New Year, Amazon is looking to make millions if not billions off that spread.
Think about this: Last year, a total of around 2.5 billion packages were shipped in the U.S. last holiday season. Amazon Prime packages accounted for over 1 billion of them. And 75% of those came from third-party sellers.
At a cost of $12.80 per medium flat-rate Priority Mail box, that’s $9.6 billion in shipping paid by Amazon third-party sellers. This year, the online megalith is planning to get some of that pile of cash for itself.
And with the kind of discounts Amazon has negotiated from the USPS, it could potentially squeeze billions of dollars from its sellers with this sneaky move.
You Can’t Trust a Trust
Basically, what Amazon is doing here is completely illegal. It’s using its massive size and market share in online retail to establish itself as the dominant force in another industry: shipping.
And that’s an antitrust violation when a company uses its dominance in one market to set itself up with an advantage in a market where it’s less established.
But that’s exactly what Amazon and Mr. Bezos are doing. And they don’t care that they’re being anti-competitive. They want it that way.
Competition isn’t a good thing to powerful companies like Amazon and powerful people like Jeff Bezos. It’s an inconvenience to be stomped out with impunity.
And let’s be honest. The president is focused on China and the Fed. The Democrats are focused on the president. And the Republicans are focused on the Democrats’ focus on the president.
So nobody is even paying attention to Jeff Bezos right now. And certainly nobody is going to shift their focus and stop Amazon from doing whatever the heck it pleases.
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Take the Power Money Back
So I say enough is enough. Jeff Bezos has been bilking the global citizens for over a decade now. And it’s made him the richest person on the planet. But he won’t be satisfied until we’re all beholden to his corporatocracy.
He’s squeezed small companies that use his platform until they can barely afford to keep operating. He’s used algorithms to get consumers to buy higher-priced, lower-quality items by pushing them up the search results. And now he’s effectively launched a hostile takeover of a historic goodwill agency just to make himself even richer.
It’s time we take a stand since our political leaders are all too busy bickering with each other. It’s time we claw some of that money he’s stolen from us and our communities back. And I’ve found a completely legal way for you and me to claim a share of billions of dollars skimmed right out of Amazon’s flush bank accounts.
This year, regular people like us will collect a total of nearly $1.5 BILLION from Amazon through this special legal loophole. Some will cash in on payments worth $48,000 or more.
Folks in my investing community have already collected their share of six payouts worth over $2 billion since we discovered this strategy. It’s such a profitable opportunity that we’ve taken to calling it “Prime Profits.”
And the next payment is coming very soon. It’ll be announced in mid-December. And everyone who’s gotten on board by December 13 will be getting a share of the payout.
Now or Never
But you’ve got to be enrolled by the 13th or you’ll get nothing from Jolly Old Saint Jeff for Christmas this year. Even an hour late, and you’ll miss out and have to hear about how everyone else is spending their “holiday bonus.”
So do yourself a favor and get enrolled today. You can find all the information you need right here. Just click the image below and you’ll be linked to a presentation with all the details.
Or you can access all that same information in a written report by clicking here.
The presentation is very valuable and we spent a lot of time putting it together. So I’d personally appreciate it if you watched.
But it really doesn’t matter to me how you get the information, just that you get it.
And get ready to start collecting your own Prime Profits.
To your wealth,
After graduating Cum Laude in finance and economics, Jason analyzed complex projects and budgets for the U.S. Army. Then, at Morgan Stanley, he led the assistants' team for the North American repo sales desk, responsible for hundreds of multibillion-dollar trades every day. Jason is the assistant editor for The Wealth Advisory income stock newsletter. He also contributes regularly to Wealth Daily. To learn more about Jason, click here.
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