Amazon Will Reportedly Cut Its Usps Shipments By At Least Two-thirds

A caller alteration successful really nan US Postal Service handles shipping partners appears to person forced Amazon to make replacement plans. The institution reportedly plans to trim nan number of packages it ships done USPS by astatine slightest two-thirds later this year. It says nan determination came aft USPS ended negotiations “at nan eleventh hour” successful favour of a caller bidding process.

On Tuesday, nan Wall Street Journal reported that Amazon plans to trim nan shipments it hands disconnected to USPS. Last year, nan institution accounted for astir 15 percent of nan Postal Service’s package deliveries. Cutting that by astir two-thirds diminishes 1 of nan USPS’s astir reliable sources of revenue. In fiscal 2025, nan agency reported a nett nonaccomplishment of $9 billion.

Amazon’s existent statement pinch USPS ends connected September 30. In a public response to nan WSJ story, nan institution said it notified USPS successful October 2025 that it would request to complete a caller woody by December. “You can't adhd capacity for hundreds of millions of packages overnight — it requires awesome superior investment, semipermanent infrastructure planning, hiring, and logistics coordination,” Amazon wrote.

According to Amazon, USPS past pulled nan plug connected negotiations astatine nan past second. “We negotiated pinch [USPS] successful bully religion for much than a twelvemonth to scope a woody that would bring them billions successful gross and believed we were heading toward an agreement,” Amazon wrote successful a statement. “Our extremity was to summation our volumes pinch USPS, not trim them — until USPS abruptly walked distant astatine nan eleventh hr successful December.”

That’s erstwhile Postmaster General David Steiner implemented a caller bidding process for last-mile deliveries, replacing a long-established 1 wherever USPS negotiated pinch shipping partners individually. He described nan move arsenic “a adjacent bidding process that enables nan marketplace to find nan champion operation of section shipping attributes for nan champion volume-driven pricing.” Steiner was appointed to nan station successful May 2025, pursuing nan departure of erstwhile caput Louis DeJoy.

Amazon said it submitted a bid successful February utilizing nan caller strategy but hasn’t heard back. “This creates important uncertainty for our semipermanent web planning,” nan institution said. “Despite this, we participated successful bully religion and submitted a bid successful February 2026. We've received nary response.”

USPS plans to denote nan bidding results successful Q2 2026. Contracts are expected to beryllium finalized by Q3. Despite apparently moving guardant pinch nan contingency plan, Amazon said it’s still “ready to proceed this partnership.”

As for Postmaster Steiner, he spent Tuesday asking Congress to loosen USPS regulations and fto him raise prices. Warning that nan agency will “run retired of cash” successful astir a year, he told a House subcommittee that he wants to raise nan agency’s existent $15 cardinal indebtedness cap. He besides asked for nan expertise to summation postage prices and betterment its retiree pension obligations.