- Recently, Donald Trump released a series of tweets attacking Amazon. He said it’s Amazon’s fault that the U.S. Post Office is losing money on shipping packages, essentially blaming Amazon for a budget shortfall at the USPS. According to our research, Amazon simply qualifies for the rates that USPS publicly publishes, so if any blame were to be placed it would be squarely with the USPS, not Amazon. The main financial issues that the post office has, is that people just do not send much mail anymore but every home must still be serviced. Shipping and package revenue is actually growing and is on track to surpass that of first-class mail. The fact is that private companies such as DHL, UPS and FedEx can pick and choose what they will ship and at what price and the USPS cannot.A much more damaging UPSP policy to US businesses is the 2011 deal, called ePacket, with the national postal carriers of China and Hong Kong, South Korea and Singapore to allow packages under 4.4 pounds to be sent to the U.S. for extremely low rates. The rates are so low that it’s cheaper to ship packages from China to an American city than it is to send that same parcel from one US city to another. The approximate cost to ship a one-pound package from South Carolina to New York City is $6; from Beijing to NYC, it’s $3.66. and sending that same one-pound package from New York City back to Beijing would cost around $50. This USPS policy is much more damaging to the American economy and the USPS budget than domestic bulk rates. Renegotiating epacket would be much more helpful to the USPS bottom line than any domestic package deal with Amazon. We predict that any volatility in Amazon’s stock price is short term as any meaningful action such as an antitrust investigation takes years to complete and the company is focused on long term strategy and diversification, something we can all learn from.
- Amazon is making a new acquisition with AWS acquiring a majority stake in Shapeways, the 3d print on demand platform. This represents AWSs first venture into physical services and perhaps the first indicator that Amazon will eventually add 3D print on demand to the platform. It was the acquisition of Woot.com that led the way for the pod clothing business that is now thriving, will objects be next? This also gives them access to Shapeways technology for domestic 3d prototyping and short run manufacturing.
- Amazon’s engineers are at it again. Amazon has been issued a patent for technology that will allow drones to understand some basic human gestures. So, if a drone is flying at you and you wave or give it some other gesture, it will steer in a different direction. The image on the patent is especially amusing.
- Amazon has been in the self publishing business for years with their CreateSpace platform. On April 1st, Amazon Publishing launched which is a competitor for traditional publishing houses. Amazon has so many advantages here it’s not even funny. The data they have on what books sell at what volume around the world will easily allow them to renegotiate contracts with existing authors and for those who do successfully self publish, they will be able to make generous offers to bigger sellers. They will have a higher profit margin for books by cutting out the middleman so they can lower prices and still make great profits. This is just one more step in Amazon’s strategy to eliminate large distributors. If companies like Hasbro and authors like JK Rowlings will sell direct to Amazon they can control market share and still lower prices.
- Amazon sellers need to be aware that the Seller Feedback Removal Policy has been updated. As of mid may, feedback will only be eligible for removal 90 days. This applies to all seller feedback.
Scanner Society is sponsoring2 upcoming seller conferences.
SimpleZon in Houston on April 27th and ACE in New Jersey on May 6th.
There are still a few tickets available, sign up NOW! Members receive discounts to both.