Why the Postal Service doesn't need Amazon

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Trump also wants to change Amazon's tax treatment, the report said, an issue the president raised publicly past year when he called for an internet tax for online retailers, even though Amazon already collects sales tax on items it sells direct to customers.

The largest online retailer has been a favorite target of Trump since his campaign, with the president blasting the company on Twitter for paying what he says are unfairly low taxes, damaging other retailers, and allegedly getting a sweetheart deal from the U.S. Postal Service, among other complaints.

Amazon's stock price dropped in early trading Thursday after the president's comments.

Though the retailer has provoked the ire of the President, an editorial published by The Wall Street Journal rebuffed the Trump's complaints, explaining that "the executive branch can't do much to hurt Amazon".

Amazon doesn't have to pay sales taxes in many cities, Davis noted, but that is due to flaws in state and local laws rather than to Amazon flouting tax regulations. In other states, Amazon doesn't require but offers to collect sales taxes for third-party vendors. The postal service's contract with Amazon must be approved by regulators and must generate a profit for the service.

The Postal Service saw a net loss of $2.7 billion in fiscal 2017, driven by factors such as declining flat-mail volume and pension and health benefit liabilities.

People use Amazon for everything from washing powder to furniture and many items are delivered on the same day, hours after the order is placed. Historically, 'there is no doubt that Amazon used its ability to not collect sales tax to gain a competitive advantage'.

It's true that traditional, high street retailers are suffering in the age of online shopping, but Amazon alone can not be blamed for this.

Revenues from parcel deliveries are up but it hasn't been enough to offset the sharp decline in letter revenue, which has been a big problem for the postal service since the rise of email and online billing.

At the end of the day, Trump's comments are unlikely to have a major impact on Amazon's bottom line, said Thad Peterson, senior analyst with the Aite Group.

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She suffered bullet injuries and was admitted to the Military Hospital Peshawar and then taken to London for further treatment. She was returning to Islamabad on March 31 following her visit to her hometown. "Islam has taught me the importance of peace".

Asked during the White House press briefing on Wednesday whether the president wanted to go after Amazon, Press Secretary Sarah Sanders said the White House had "no announcements and no specific policies or actions" regarding the company.

One possible change could affect the growing number of third-party retailers that sell through Amazon.

White House spokeswoman Sarah Sanders said Wednesday no specific policies were now being considered in regards to Amazon.

Details of Amazon's payments to USPS are not publicly known.

To comply with federal law, the Postal Service in 2017 had to generate at least $1.6 billion in income from its "competitive nonpostal services", which includes Amazon package deliveries.

"Common sense suggests USPS needs Amazon more than Amazon needs USPS", Stifel analysts wrote in a research report this week.

Concerns over Amazon taking business away from brick-and-mortar retailers have led to efforts in local state legislatures and in Congress to find ways to make sure e-commerce can thrive without breaking the back of local retail operations.

He has also accused Bezos of using the Washington Post, which Bezos owns separately from his interests in Amazon, as a tool to build political influence and damage him personally.

White House Deputy Press Secretary Raj Shah denied on Thursday that Trump's criticism was a personal grudge. Or is it something to do with the CEO and founder of Amazon, billionaire Jeff Bezos? "It's really about policy".

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