Amazon and USPS Negotiations Are Crumbling. Will This Hurt the eCommerce Giant's Stock?

Amazon (NASDAQ: AMZN) once relied heavily on the United States Postal Service (USPS) to fulfill its "last mile" deliveries. That partnership was mutually beneficial: Amazon secured bulk shipping discounts from the USPS, while the USPS filled its unused delivery capacity. Amazon's delivery speeds also accelerated after the USPS started delivering its packages on Sundays in 2013. By delivering more packages, the USPS offset its declining letter mail revenues.But over the past decade, the e-commerce leader has expanded its first-party logistics network, Amazon Logistics, to reduce its dependence on USPS, UPS (NYSE: UPS), and other third-party couriers. That expansion transformed Amazon from a partner to a competitor, giving the company even more leverage to negotiate lower delivery rates with its third-party partners.Image source: Amazon.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool