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This is why I was suggesting this might not be sustainable. Carriers have built their business based on certain assumptions. The big assumption is that customer

This is why I was suggesting this might not be sustainable. Carriers have built their business based on certain assumptions. The big assumption is that customers prefer having predictable pricing. This assumption is correct for every other business they deal with, for the carriers Amazon is an aberration. Since Amazon only provides a small percentage of their business, carriers must invest significantly in building out a system for destination based pricing just for Amazon. The alternative is to simply assume all of Amazon's package traffic is going to be lowest-margin and price appropriately.

londons_explore 6y ago
> The alternative is to simply assume all of Amazon's package traffic is going to be lowest-margin and price appropriately. This seems like the simplist way. The company could take a sample of 100 Amazon parcels, analyze the marginal cost of delivering each (how full was each van, how much did it add to each route, etc), and use that as the basis for price negotiations with Amazon. If that means Amazon pays more than other customers, fine.