The proposed uptick in shipping and mailing fees at the U.S. Postal Service could cost Amazon more than $1 billion in 2019, according to Credit Suisse, which cut its near-term estimates for operating profit on the e-commerce behemoth.
"As we roll forward the sensitivity analysis to 2019, we arrive at a potential incremental Shipping Expense range of $400 million to $1.1 billion range with the assumption that 40 percent to 50 percent of U.S. packages are shipped via the Postal Service," analyst Stephen Ju wrote Monday.
Modeling a number of factors including the potential increase in carrier costs, rising labor expenses as a result of Amazon's minimum wage increase and moderating shipping volume, Ju cut his 2019 pro forma earnings per share estimate by nearly 19 percent to $34.99.
Amazon's stock rose 0.3 percent Monday morning.
The Postal Service announced on Oct. 10 it filed notice with the Postal Regulatory Commission — the body tasked regulatory oversight of the agency — of proposed price changes to take effect Jan. 27, 2019, if approved.
Postage for 1-ounce letters is expected to rise to 55 cents from 50 cents.