Amazon shares have taken a hit after US President Donald Trump said the United States Postal Service should charge the internet shopping giant more for delivery.
- Trump said on Twitter that USPS is "losing many billions of dollars a year"
- Amazon shares closed down more than 1 per cent on Friday
- The Postal Service has just reported higher-than-expected revenue "due to e-commerce growth".
In a tweet on Friday, Mr Trump said Amazon should be charged "MUCH MORE" by the post office because it is "losing many billions of dollars a year" while it makes "Amazon richer".
Amazon has been a consistent recipient of Mr Trump's ire. He has accused the company of failing to pay "internet taxes", though it has never been made clear by the White House what the President means by that.
In the seconds after the tweet, shares of Amazon, which had been trading higher before the opening bell, began to fade and went into negative territory.
The stock closed down more than 1 per cent Friday. Broader markets also slipped.
Amazon was founded by Jeff Bezos, who also owns The Washington Post. The Post, as well as other major media, has been labelled as "fake news" by Mr Trump after reporting unfavourable developments during his campaign and presidency.
The President has labelled the Post the "AmazonWashingtonPost".
Seattle-based Amazon, which recently moved into Australia, did not respond to a request for comment on Friday.
A spokeswoman for the Postal Service said, "We're looking into it".
Between July and September, Amazon paid $US5.4 billion in worldwide shipping costs, a 39 per cent increase from the same period in the previous year.
That amounts to nearly 11 per cent of the $US43.7 billion in total revenue it reported in that same period.
The Postal Service has lost money for 11 straight years, mostly because of pension and healthcare costs.
One part of the operation that is not suffering, however, is shipping and packages, which handles Amazon and other online orders from retailers.
In the year that ended September 30, the postal service reported higher-than-expected revenue of $19.5 billion, "due to e-commerce growth".
The post office does not break down what is driving that growth, but online orders from retailers, particularly Amazon.com, have revolutionised the way goods are bought and delivered.
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