When Amazon Prime isn't Amazon Prime

[Johnny2Bad]

That may be because the most stringent requirement law to fully fund their retirement fund mandates catching up. No other agency or company or whoever has to do this, only the post office.

Yes, they are paying roughly $7 Billion every quarter to the US Treasury for the pension obligation. A loss of $1 Billion is really their operational loss *after* paying those funds (which are mandatory). They've had to increase rates twice since late in the Bush administration when they passed the law making the pension obligation legislation, expect a third soon if the net loss continues.

The treasury doesn't apply the monies to any actual future pension obligation, but spends it as it comes in.

 

[highfigh]

That may be because the most stringent requirement law to fully fund their retirement fund mandates catching up. No other agency or company or whoever has to do this, only the post office.

Interesting that the USPS retirement fund is mandated to be fully funded but Social Security is called 'an entitlement program' and Congress has raided it since the '60s, to use it to bolster the general fund.

 

[Irvrobinson]

Interesting that the USPS retirement fund is mandated to be fully funded but Social Security is called 'an entitlement program' and Congress has raided it since the '60s, to use it to bolster the general fund.

This simply isn't accurate. The USPS retirement fund was changed from a pay-as-you-go system to a formal retirement fund in 2006, but it is still backed by the US Treasury. It is just a matter of how the liabilities are funded. As USPS revenues have declined, and their gross margins have declined faster than revenues, Congress moved the USPS away from the pay-as-you-go system as unviable. In essence, it forces an increase in postal rates to pay for pensions and retiree health benefits. The real controversy is over the stringency of the funding requirements versus most corporate plans, but the USPS isn't really a free-market business, and its revenue is in decline while most of its obligations (such as delivery to everyone in the US everywhere, including on Saturdays) don't lessen. While we can argue over the level of stringency for funding, I like the intent of the change, as the USPS pension system is unviable given its declining status.

Social Security is intended to be a pay-as-you-go program. The tax collection surpluses (when there were surpluses), where a surplus was defined as when collections exceeded SS program costs, are put into special interest-bearing US Treasury bonds. These bonds are special in that there isn't a market for them; they are always worth face value. All of the tax dollars collected have always gone into the general fund for dispersement. Since governments capable of printing currency can't really have a "savings" account in their own currency, cashing in these bonds has always been the same as just printing more currency. Nothing has changed. The only "raids" Congress has made on the SS system is by increasing eligibility without a commensurate increase in taxation. By law the Trust Fund bonds can't be used for anything other than SS pay-outs and program costs. The raids are really a myth.

 

[sholling]

I have prime, pay yearly. I also pay $7ish dollars for unlimited which adds a ton more music. As much as I enjoy the huge catalog of music, I'm irritated that I'm a prime subscriber and have to pay additional for the premium music (at least I get a small discount) I keep contemplating switching to spotify or tidal, but amazon has yet to fail me when searching for music, I swear they have everything.

I agree completely, plus the convenience of hands-free or near hands-free voice search for music is hard to beat. I have Google Music as well but only because it comes free with Youtube-Red. Google Music just doesn't seem to have as good of a selection and IMO the interface is not nearly as user friendly as Amazon's. Unfortunately, very few of Amazon's or Netflix's catalog of original series or comedies are to my taste. I'm just not into "chick-flix", melodramas, dark and depressive dramas, preachy-ness, or political humor. That pretty much covers 90% of their catalogs of originals.

What I've always liked about Amazon Prime and Prime shipping are fast "free" 2-day delivery (although sometimes with slightly elevated prices to cover the cost of shipping), the convenience and discounted prices of their Subscribe & Save service, and their excellent-quality customer service. On the other hand "free" 2-day shipping is now stretching into 2-4 day "free" delivery and returns are more limited than they were in the past.

 

[pewternhrata]

Now that you mention, I have noticed more items at 2-4 day shopping. As a prime subscriber i don't notice shipping costs as i always filter to prime when searching.
I read an article at the beginning of the year that predicted Amazon's downfall (that amazon will be out of business) within like 7 years. I'd believe it if they continue to up prices and increase shipping times. As much as I hate Amazon, I find myself buying more and more bc it's cheaper and generally I only have to wait a day or 2 to get my purchase. I have used target pick up in store and I prefer that over amazon, and I think its genius, their customers purchase items online and it brings traffic to their stores.

 

[highfigh]

Online purchase/in-store pickup is great, especially when the credit card belongs to someone else, the way mine was used recently. Just great. The pinhead at the ATT store apparently didn't feel the need to ask for any ID, either.

 

[jinjuku]

Online purchase/in-store pickup is great, especially when the credit card belongs to someone else, the way mine was used recently. Just great. The pinhead at the ATT store apparently didn't feel the need to ask for any ID, either.

Anymore the clerk never touches the card.

 

[sholling]

Online purchase/in-store pickup is great, especially when the credit card belongs to someone else, the way mine was used recently. Just great. The pinhead at the ATT store apparently didn't feel the need to ask for any ID, either.

I find myself doing more and more order online and pick up in store purchases from Target and Walmart because they can be a lot cheaper than Amazon. For example on Cyber Monday I bought my Fire Tablet 10 at Target.com for $80 ($99-15%-5%) with free in-store pick up. If memory serves, was on sale for $119 at Amazon at that time. Last week it was a fantastic 20 can cooler from Walmart on sale for $24.

 

[highfigh]

Anymore the clerk never touches the card.

I went to a restaurant for lunch and should have paid at the counter near the door. The waitress usually takes the card, processes the payment and comes back, making that the last time I'll let that happen. Still waiting for the Police to call, so I can see the ATT video, so I can ID the person, or not, depending on whether the person who got my card number was the one who used it.

 

[j_garcia]

I find myself doing more and more order online and pick up in store purchases from Target and Walmart because they can be a lot cheaper than Amazon. For example on Cyber Monday I bought my Fire Tablet 10 at Target.com for $80 ($99-15%-5%) with free in-store pick up. If memory serves, was on sale for $119 at Amazon at that time. Last week it was a fantastic 20 can cooler from Walmart on sale for $24.

I always check around because Amazon ISN'T always the cheapest, but sometimes with the free 1 and 2 day shipping, Amazon still ends up being a better deal. Some things, when I already know I am going to be there in the store, it doesn't matter if Amazon is the same or a little cheaper because I have it in my hand right now.

 

[panteragstk]

On a related note, I saw that USPS lost $1.3B in the last quarter, but the Postmaster said the package shipping covers their infrastructure, which lets them do other things. Like lose money, apparently.

I wonder if they would still lose money if they raised their flat rate price by 5%.

I worked on the project for USPS that lets them post real time tracking updates for their packages. Specifically for Amazon. After dealing with those at the head of that project, I'm not surprised that they are losing money.

 

[KEW]

You can't go back!

At least, I can't!
Several times I have ended up buying an item from Amazon to ship directly to my daughter at school.
For small items, comparing what it would cost for me to ship something she left home (such as her iPhone charging cord) vs buying a new one from Amazon with free shipping, it becomes a no-brainer, and that doesn't even consider my time to find box, pack, and take to UPS!
I've sent lots of birthday and graduation presents using Amazon as my postal service because they are fast and inexpensive! I can check to see when it gets delivered and follow up with the recipient to make sure everything was in good order!

 

[pewternhrata]

Curious how the head tax will add to this...