A recent change in how the US Postal Service handles shipping partners appears to have forced Amazon to make alternative plans. The company reportedly plans to cut the number of packages it ships through USPS by at least two-thirds later this year. It says the decision came after USPS ended negotiations \u201cat the eleventh hour\u201d in favor of a new bidding process.<\/p>\n
On Tuesday, the Wall Street Journal<\/em> reported that Amazon plans to reduce the shipments it hands off to USPS. Last year, the company accounted for nearly 15 percent of the Postal Service\u2019s package deliveries. Cutting that by nearly two-thirds diminishes one of the USPS\u2019s most reliable sources of revenue. In fiscal 2025, the agency reported a net loss of $9 billion.<\/p>\n Amazon\u2019s current contract with USPS ends on September 30. In a public response to the WSJ<\/em> story, the company said it notified USPS in October 2025 that it would need to complete a new deal by December. \u201cYou can’t add capacity for hundreds of millions of packages overnight \u2014 it requires major capital investment, long-term infrastructure planning, hiring, and logistics coordination,\u201d Amazon wrote.<\/p>\n According to Amazon, USPS then pulled the plug on negotiations at the last second. \u201cWe negotiated with [USPS] in good faith for more than a year to reach a deal that would bring them billions in revenue and believed we were heading toward an agreement,\u201d Amazon wrote in a statement. \u201cOur goal was to increase our volumes with USPS, not reduce them \u2014 until USPS abruptly walked away at the eleventh hour in December.\u201d<\/p>\n
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