Discussion

Amazon to add 3.5% fuel and logistics surcharge for sellers as Iran war drives up energy prices

exabrial: We could immediately provide relief to fuel prices, while doing the climate a huge favor, by immediately suspending the USPS accepting marketing material through the mail.My mailbox is permanently jammed with paper that useless paper that is both produced and hauled away to a landfill by diesel fuel.No I do not want your credit card offer.No I do not want to switch phone plans.No I do not want an extended warranty.

ssl-3: What percentage of overall vehicular fuel use does junk mail (from inception to landfill) constitute, might you suppose?

Teever: It's not just the vehicular fuel that goes into this process, it's the growing the trees, harvesting them, making them into paper, then combining that paper with ink that likely has a similarly complex supply chain on a printing press that consumes a lot of power.Getting flyers that are subsidized by the post office for stuff like lawnmowers and patio furniture even though I live in an apartment is peak absurdity.

calvinmorrison: In FY2022, fuel consumption was 221 million gallons of gasoline equivalent, with gasoline or diesel making up 99%. USPS fleet greenhouse gas emissions (GHGs) made up 70% of overall GHGs for federal fleet vehicles in FY2022.50-60% of all mail is marketing slop

LightBug1: Amazon/General Trump Tax (Redux) ... coming to an economy near you soon.USA voters ... you really fucked it up this time (generous exemption for those who didn't vote for the orange dildo).

exabrial: Honestly I'd be surprised if it's that low. My guess is by weight its closer to 85%-95%

lenerdenator: I live in what was a family member's house before her passing in 2014.I still receive her mail.Here's the kicker: the mail is addressed to a name she hadn't legally had since the late 1970s. She divorced and remarried - which meant taking her new husband's last name - then lived another 30-ish years, died, I moved in, and it's been ten years of me there.It's an insanely wasteful practice.

lokar: A lot of the USPS budget is from delivering bulk mail. They already fail to break even (albeit with absurd retirement funding rules imposed on them). Without the fees from bulk mail they would need to raise prices, and it's not entirely clear they could given they face strong competition.

jrockway: Sometimes I wonder if we just do these wars so that companies can raise prices and when the war ends, not lower them. Do we ever see "oil prices are down 3.5%, we are lowering our prices by 3.5%"? Never. "But the free market will force someone to do this to gain marketshare." But Amazon is the only Amazon, so I doubt that will happen.

2OEH8eoCRo0: Gas often goes up and down. It was recently the same price as it was 15 years ago.

tshaddox: Percentage of mass is probably the wrong metric to look at, because it assumes that the USPS could simply eliminate the X% of mass used by junk mail and save roughly X% on fuel/delivery costs.But of course the issue is that the junk mail is subsidizing the actual mail. There's likely no way the USPS could be financially solvent, at least with the current level of service, if junk mail were eliminated. Personally I'd be fine with that. One or two mail deliveries per week would be more than enough!

0cf8612b2e1e: Last year, Amazon backed down from sharing tariff pricing. I assume the same will happen here.

djoldman: I immediately thought of that move.This time I think the surcharge will stay until the war is concluded.

mrguyorama: Mail delivery vehicles have to travel roughly the same paths as long as there is most anything to deliver.That's what makes it a public service.Junk mail just makes stamps cheaper. That route had to be driven anyway. You have generally what amounts to a right to put a stamped letter in your box at the end of the driveway, put up the flag, and get serviced. The route has to be driven regardless.We could eliminate all marketing mail, make a large push to make all billing digital, and USPS would still have to drive most routes most days.A fix would have to reduce service significantly, or introduce a new "Register for pickup" process to signal your need of service.We could have also made those brand new mail vehicles hybrid or something.

binarysolo: Amazon third party seller (low 8s) here: last time this happened was during COVID and it ended up being a permanent FBA shipping price increase.Practically speaking shipping accounts for 10-20% of the sale price, so realistically it's the seller who will absorb it and maybe pass on costs to the buyers, but we're talking about 3.5% of 10-20%, which is really a 1% price increase, so a noticeable but not make-or-break issue in the death-by-1000-cuts.The Andy-led Amazon is less forgiving than the Jeff "your margin is my opportunity"-led Amazon on profitability so price shocks have passed through to sellers much more immediately than prior years where Amazon would just move slowly and stably.The bigger Amazon news recently is on DD+7 and how Amazon basically increased their float and delayed payments on all sellers, and that's been kinda a pain to navigate.

mikestew: $8, and that all stops for ten years: https://www.dmachoice.org/static/consumer_choice_tools.phpI’ve done it (several times, ‘cuz ten years), you’ll notice an almost immediate reduction in junk mail.

youarentrightjr: Sounds like a racketeering operation (not saying it doesn't work).

mikestew: It indeed has a fishy smell to it. But as I thought through it, if it were free then some bozo would spam an entire address database and then we can't have nice things anymore. The ten year expiration is sketchy, but I guess someone is hoping you'll let it expire (I've never received a "renewal notice", as it were.) And, yeah, "nice mailbox, shame if it got filled with shit you didn't ask for."OTOH, for less than a dollar a year, I can go find other clouds to shake my fist at.

zobzu: i fully expect it yo be permanent. they know its likely to come back down.

Brainspackle: Do you buy off Temu and re-sell on amazon?

SoftTalker: I don't really understand why we need a US Postal Service in 2026. Yes, the Constitution grants congress the power to establish "post offices and post roads" but it doesn't mandate it AFAIK.Other countries (Denmark is an example) have completely privatized physical mail delivery. All official mail is electronic. There's some nostalgia for the postman on his red bicycle (or in the USA, walking the neighborhood or driving their funny looking trucks) but are they really necessary?Edit to add: since running post offices is explicitly a Federal power, a conversion of US Mail to being electronically based would be completely within scope. There would be no arguing over "states rights" that tends to become a logjam for any other national infrastructure or policy changes.

michaelt: Traditionally, the state has certain duties it needs to perform for every member of the population.Passports, driving licenses, polling cards, draft registration, pensions, company registrations, patents, copyrights, court summons, speeding fines, inheritance, tax paperwork, census, etc etc.It’s much simpler to perform these duties if you have a means of communication that can reliably reach every citizen.

gnabgib: Title could really use "for third-party sellers who use fulfillment services" (this is not a 3.5% surcharge on AWS, Prime, or Amazon orders)

zoover2020: It was pretty clear to me. AWS is Web Services after all

usefulcat: Reducing the frequency of mail delivery would have a much larger impact, since most of fuel is probably consumed by last mile delivery.Delivering less mail each day doesn't really make much difference if the mail carrier still has to come to my neighborhood 6 times a week.

browningstreet: Fewer mail carriers could hit twice as many places in a given time-frame and reduce overall gas usage.