How Amazon Got the Post Office to Deliver on Sunday

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Nov. 11 (Bloomberg) -- Cory Johnson reports on Amazon's plans for Sunday USPS deliveries. (Source: Bloomberg)

Faster delivery times as well.

Or he johnson has more.

How exactly would this work?

-- cory johnson has more.

When you see the expansion of commerce into everything, sunday is sort of a layup, and amazon is trying to get around the old days of the post office and the challenge they had.

You have seen the way they have used the stock to pay employees and grow their business.

Amazon will continue to find new ways to bring in revenues.

This sunday plan has already begun.

Effective immediately in los angeles, new york, amazon prime subscribers are able to get delivery on sunday from the u.s. postal service.

They will be expanding to dallas, houston, new orleans, and phoenix in 2014, among others.

This is amazon prime customers only.

What this underscores is amazon is so powerful and they spend so much on shipping, they have compelled the postal service to do something they have never done.

The numbers are astounding and growing.

In the most recent quarter, spending $1.5 billion in shipping.

That is a huge number.

Of course, the fourth quarter, which we are in now, is their biggest quarter of all.

What can you tell us about how amazon works with different shipping providers, like the postal service, ups?

I have been to the fulfillment center in phoenix.

What is really astounding to see are all of the different shippers, whether it is fedex, ups, the postal service.

All of those trucks lined up outside the fulfillment center.

You can imagine, their ability to move $100 million there, $1 00 million there, it really gives them control over what companies are doing.

Obviously, they charge for amazon prime, but they send you a lot of think weekly, and for free.

It is interesting how amazon discloses some things and not others.

They are compelled to disclose their shipping cost and revenues.

And this does not include third- party shippers.

Amazon itself recorded $721 million in shipping revenue the past quarter.

Despite that, they are losing money every quarter on shipping.

Nonetheless, they think this will drive revenues.

Their losses in a shipping business are astoundingly large, but nobody seems to care.

The stock market is driving their revenues higher and they continue to grow their business.

What about those cities, what does that tell you about where they are rolling it out first?

The company is growing faster in the u.s. man overseas.

International percentage of their revenue has been climbing over the last couple of years.

Now we see them pushing distribution centers closer to major cities, dealing with state sales taxes, which they have tried to avoid in the past.

This new delivery is pushing them closer to their customers -- fulfillment center is pushing them closer to their customers.

I think we can expect more business in the u.s. thanks to new faa guidelines,

This text has been automatically generated. It may not be 100% accurate.


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