Do large retailers like Wal-Mart and Amazon receive discounted postage rates by USPS, UPS, FedEx, etc.?
The answer is absolutely.
It's hard to get an idea of the exact prices these large retailers are being given, because at this elite level - they will be negotiated on a case by case basis. This means that the mailing company will bring some of its people, and its customers people together, and they will hammer out a deal in a (sometimes) lengthy boardroom discussion.
In the UK, Amazon is literally the Royal Mail's best friend. Royal mail ship all of their products for just pennies. It means these retailers can indeed keep their (usually slim anyway) margins and offer us a good deal.
In some cases however, it has been reported that these postage deals reflect a postage price lower than what they're actually paying. What this means is these retailers are often losing money on their P&P charges. They do this to bring customers in who will hopefully stay for years and generate future profits. This type of strategy is common in the competitive online business world, where numbers of customers is seen as a good indicator of growth, while short term profits are less important.
Be aware that companies like Amazon who offer free postage forever, will be covering the cost of doing so, through higher sales prices. Fortunately Amazon's prices are so cheap in the first place, that this still leaves them ahead of many other online retailers.
A discount store is a retail store which sells products at prices that are lower than the typical.Currently Aldi, the largest retailer in the world (Planet Retail Ranking- June 2014), operates more than 10,121 discount stores worldwide. ?History · ?Canada