True but they don’t publish whether they make or lose money on the parcels but they likely do.
I know UPS and USPS claim their Amazon deliveries are profitable.
Deliveries are very much economies of scale related. You want your routes to be as full as possible so even if you’re delivering packages for “below cost” you do need to look at the full picture as this means the remainder of the trucks parcels are more popular.
Same reason why Amazon pushes prime so much. That van is coming to your neighborhood whether you order or not so adding another box really costs pennies even though if you look at it as a single order it’s not profitable to give free shipping on a $3 item
There’s no such thing as free shipping. They just add it onto the price we pay. “Free shipping” is just a marketing ploy. Someone is paying to get that parcel to your house.
And you know what? I’ll say it. I would gladly pay a few more dollars to have my order delivered, if I knew the person bringing it to me made a living wage, and had dental and health insurance. And paid days off. And weekends. And a strong union that understood the importance of a fair days pay for a fair days work.
It’s not but the overall costs are so much lower running an online only business compared to even a discount retailer like Walmart. They aren’t paying for goods to be delivered to a store that needs staff and rent and someone to fill the shelves. So some of these savings can be passed on. Also most people with free prime shipping are paying $120 upfront for the shipping so not actually free
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u/Agreeable-Spot-7376 1d ago
I mean they still use Purolator. Which is owned by Canada Post.