Amazon Plans to Slash USPS Shipments by Two-Thirds. Here’s What That Means for the Postal Service.
The Postal Service is in danger of losing its biggest customer and could run out of cash within a year.
Amazon plans to send the post office a Dear John letter. The e-commerce giant 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, according to The Wall Street Journal. USPS delivered more than a billion packages for Amazon last year. That’s close to 15% of all packages the agency delivers.
The timing of the separation couldn’t be worse. 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 plans to send the post office a Dear John letter. The e-commerce giant 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, according to The Wall Street Journal. USPS delivered more than a billion packages for Amazon last year. That’s close to 15% of all packages the agency delivers.
The timing of the separation couldn’t be worse. 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.
