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by oezi 28 days ago
If you have ever watched a deliver truck on their tracking app to crawl its way to you from stop to stop you realize the most optimistic timing is maybe 1 minute per package. Assuming the truck, driver, gas could be operated for 60 USD/hr the marginal cost seems more like 1 USD per package, but likely more.
1 comments

No wonder Amazon decided to basically create their own logistic chain.

Fedex/UPS cost for a single package is roughly ~$13.95 (this was ~5 years ago when I was working in ecommerce) and even if Amazon was getting a huge discount from them for the volume they do, it was still probably nowhere near $1/package.

That 13.95 price includes airplane rides too, it isn't just the last mile delivery.
999/1000 times if you track the package, it was going ground on a freighter.

That price is generally way too low to include air mail.