Amazon Plans to Slash USPS Shipments by Two-Thirds. Here's What That Means for the Postal Service.

"Amazon plans to cut the number of packages it ships through the U.S. Postal Service by at least two-thirds by this fall, when its current contract expires. USPS delivered more than a billion packages for Amazon last year. That's close to 15% of all packages the agency delivers."

"The Postal Service reported a $9 billion net loss in fiscal 2025 and has operated at a loss for most of the past two decades. During a congressional hearing Tuesday, Postmaster General David Steiner said the agency was on pace to "run out of cash" in about a year."

"Amazon puts the blame on the USPS, saying the agency "abruptly walked away at the 11th hour" after a year of negotiations and introduced a new competitive bidding process. The company now handles most of its own deliveries, shipping 6.7 billion packages last year versus USPS's 6.6 billion."

Amazon intends to cut its USPS package volume by at least two-thirds when its current contract expires this fall. The postal service delivered over one billion Amazon packages last year, representing approximately 15% of all USPS deliveries. This separation occurs during a critical financial crisis for USPS, which reported a $9 billion net loss in fiscal 2025 and has operated at a loss for most of the past two decades. Postmaster General David Steiner warned Congress the agency faces cash depletion within approximately one year. Amazon attributes the split to USPS abandoning negotiations at the last moment and implementing a new competitive bidding process. Amazon now handles most of its own deliveries, shipping 6.7 billion packages annually compared to USPS's 6.6 billion.

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